How was FY26 for you in terms of financial performance and market share ?

FY26 was a good year despite supply-chain disruptions. The electric bus market in India was around 5000+ units, largely driven by government tenders. Switch secured about 23 per cent share and remained the market leader according to Vahan registrations. In the e-LCV segment too, the company held over 40 per cent market share and ranked No.1. We achieved EBITDA margins of over 15 per cent. We were also PAT-positive for the first time. Revenue for FY26 was around ₹1,800 crore. Our goal is to grow at the same pace going forward also.

How was government support and did it help drive revenue?

Government support has been the biggest driver. Programmes such as PM e-Drive, PM e-Seva and earlier FAME schemes have accelerated adoption. The newly announced ₹9,000-crore scheme for buses, trucks and commercial vehicles in the NCR region could be a major game changer as it improves affordability and supports fleet replacement. We sincerely hope these kinds of initiatives get deployed at an All India level.

How successful has the Gross Cost Contract (GCC) model been for you?

Under this model, operators provide the buses, drivers, maintenance and operations while transport corporations provide conductors. In Tamil Nadu, over 600 Switch buses are already operating and another 500 are in the pipeline. State transport undertakings have reported savings of up to 30 per cent compared with diesel bus operations by themselves.

What new products are being launched?

Our growth strategy is built around a multi-pronged roadmap. We started with 12 m electric buses and are now expanding into 9 m buses. We are evaluating the micro buses category and exploring opportunities in double-decker buses, metro feeders and last-mile passenger mobility solutions. Differentiated platforms like electric double-decker and tarmac buses, backed by continuous technology enhancements and connected mobility solutions, will continue to strengthen our products.

What are your current bus production capacities?

We can currently produce around 5,000 buses annually through our facilities in North and South India. Capacity can be doubled quickly as demand increases. Manufacturing is spread across locations including Chennai, Trichy and Lucknow.

What is the current split between government and retail demand?

In buses, nearly 90-95 per cent demand currently comes from government tenders. However, that is expected to expand as retail fleet operators begin replacing ageing vehicles. In e-LCVs, demand is evenly split between B2B, B2C and government customers.

How is the electric light commercial vehicle (e-LCV) business performing?

The segment is still at an early stage, with Electric Vehicle (EV) penetration of just 2-3 per cent. However, we sold around 1,600 e-LCVs last year and held over 40 per cent market share. Demand is growing across B2B, B2C and government applications. E-commerce logistics remains a major opportunity.

What are your investment plans?

We intend to invest at least 10 per cent of revenue in new products, technology and capacity enhancement. In the next 24-30 months, we plan to launch 10-15 new models / variants across buses and commercial vehicles.

What challenges do you foresee?

After semiconductors and rare-earth magnets last year, current concerns include logistics disruptions, commodity price inflation and currency fluctuations. Battery cells are still largely imported, making foreign exchange movements important.

To what extent is localisation in your products?

Around 60-70 per cent of the vehicle value is localised. Batteries and some motor components still rely on imports. Our parent company, Ashok Leyland is investing in battery manufacturing capabilities, which will help improve localisation further over time.

What is your outlook for the electric bus market this year?

With EV penetration in buses expected to rise from nearly 4 per cent to around 9 per cent and potentially reach 16 per cent by FY29, this growth will be driven by schemes such as PM e-Drive, along with the government’s broader plans to deploy nearly 50,000 electric buses by FY30. We expect the electric bus industry to grow to around 12,000-13,000 units this year, more than double last year’s volumes. This estimate was made before the latest Delhi EV Policy. If that programme is implemented fully, industry volumes could rise further

How about exports?

We have already delivered 100 electric buses to Mauritius; exported e-LCVs to Nepal and secured an order for 40 nine-metre buses from Bhutan. Our UAE manufacturing facility will further strengthen our ability to serve GCC, African and other international markets more effectively.