In a strategic move that underscores the UAE’s growing prominence in the global electric vehicle (EV) industry, the Hinduja Group’s Switch Mobility, the EV-bus division of India’s Ashok Leyland, is shifting its production base from the UK to Ras Al Khaimah (RAK). This relocation marks the first large-scale, dedicated manufacturing shift by a global EV bus company into the UAE, positioning the country as a hub for production and export. The decision reflects the emirate’s cost-efficient manufacturing ecosystem, regional market access, and ambition to serve Europe, the UK, and the GCC. The UK facility in Sherburn, deemed economically unviable, will be replaced by an upgraded RAK plant, with an investment of under $3 million. Ashok Leyland’s existing RAK facility, operational since 2008, has produced over 25,500 buses and sources over 55% of its parts locally. The upgrade for EV bus production transforms the plant into a regional manufacturing hub for high-voltage electric buses. For the Hinduja Group and Ashok Leyland, this move is a significant step in their global EV strategy, enabling cost reduction, streamlined logistics, and access to the UAE’s business-friendly environment. The UAE’s industrial policy and investment incentives align with manufacturers seeking logistics advantages into Europe, Africa, and Asia. While the UAE already manufactures EV parts and related technologies, this relocation is a rare instance of a global bus-maker shifting full production into the emirate. Trial runs of the buses are expected in the UAE and Saudi Arabia by summer 2025, with a commercial rollout in the GCC by Q4 2025. The shift also strengthens supply-chain linkages, with components flowing from India and beyond, turning the RAK facility into an integrated production node. This transition signals the UAE’s industrial pivot into sustainable mobility and advanced manufacturing, while the Hinduja Group moves from import-centric operations to locally grounded manufacturing with global reach. For Ashok Leyland, it consolidates its role as a global EV-bus player with production capabilities in India, the UK, and soon the UAE. The move also positions Switch Mobility to win large fleet contracts across the Gulf as regional governments accelerate the adoption of electric public transport vehicles.
