Mumbai-headquartered automotive major Mahindra & Mahindra has announced an ambitious growth plan for its commercial vehicle (CV) business, thanks to the recent strategic acquisition of a majority stake in SML Isuzu. The company aims to leverage this acquisition to accelerate its ‘Deliver Scale’ strategy across segments where it believes it has a strong ‘right to win.’

Dr Anish Shah, Managing Director and CEO, Mahindra Group, emphasised that the group’s disciplined focus on capital allocation remains intact. "We have seen significant growth across several businesses, and now, as we enter our third phase, the focus is on delivering scale," he said.

Shah also noted that Mahindra has turned around its CV business, once under scrutiny five years ago, and sees the acquisition of SML Isuzu as a strategic opportunity to cement its position further.

Today, Mahindra is the market leader in SUVs with a 23 percent market share and ranks fifth in the CV segment above 3.5 tonnes with a 3 percent share. Through the acquisition, Mahindra aims to become a more formidable player in the CV space.

"We are targeting a combined market share of 10-12 percent by FY2031 and over 20 percent by FY2036," said Rajesh Jejurikar, Executive Director and CEO – Auto and Farm Sectors, Mahindra & Mahindra. He acknowledged that Mahindra’s CV share, which stood at around 4-5 percent in FY2020, had dropped due to the impact of Covid-19. However, with renewed focus, especially in the LCV and ILCV segments, Mahindra is planning an aggressive recovery.

SML Isuzu brings strength in the intermediate LCV bus segment, holding a 16 percent market share. Mahindra expects that, combined, they could command a 21 percent share. "The synergies are substantial across cost structures, platforms, aggregates, supplier networks, and operations," Jejurikar added.

Growth, Not Cost-Cutting

Mahindra leaders were clear that the SML Isuzu acquisition is not about cost-cutting, but about building scale. "This deal is about growth, not about taking costs out," stressed Amarjyoti Barua, Chief Financial Officer, Mahindra Group. He highlighted that SML Isuzu will remain a separately listed entity and that Mahindra has no plans to rebrand it under the Swaraj name, even though it sees potential for the Swaraj brand in certain export markets.

Financially, Mahindra believes the deal makes strategic sense. Shah pointed out that the SML Isuzu business will be self-sustaining in generating cash for future investments.

The company sees SML Isuzu's operations as a ‘well-run and frugal factory,’ with most future investments primarily required to ramp up capacity.

Vinod Sahay, President - Aerospace & Defence, Trucks, Buses & CE, Mahindra, underlined how the product portfolios of Mahindra and SML Isuzu complement each other. SML Isuzu, for instance, is at an advanced stage in developing electric buses for school, staff and executive coach applications, an area where Mahindra's electrification expertise can add substantial value.

Sahay further highlighted how combining Mahindra and SML Isuzu’s supplier ecosystems will strengthen bargaining power, especially in critical areas like tyres, batteries and key aggregates. While Mahindra boasts strong sourcing power in tyres and batteries, SML Isuzu has an edge in CV parts.

Product synergy is another opportunity. SML’s strong CNG product line and Mahindra’s newer Furio and Cruzio models – offering 8-10 percent better fuel efficiency – will allow the combined business to offer compelling choices to customers across the LCV, ILCV and M&HCV categories.

With over 200 dealers and 400 touchpoints between them, Mahindra plans to optimise and expand network coverage for a wider reach.

While Mahindra is bullish on growth, Shah made it clear that there are no immediate plans for further acquisitions. "Now the business must prove itself," he said, reiterating the company’s strategic belief in building businesses that have a clear right to win, strong financial metrics and differentiated products.

Looking ahead, Mahindra is betting that a stable yet evolving CV market – especially in buses and light trucks, which the management stated will provide the runway needed for long-term growth, as the group consolidates its position as a dominant player across automotive categories.

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Chennai-based commercial vehicle major Ashok Leyland has announced a robust financial performance for Q4 and FY2025. The company reported achieving its highest-ever quarterly and annual revenues, EBITDA and profit after tax (PAT). 

For Q4 FY2025, the EBITDA of 15 percent at INR 17 billion, as against 14.1 percent at INR 15 billion last year. The PAT came at INR 12 billion, up 38.4 percent as against INR 9 billion last year. The company generated INR 32 billion in cash during the quarter.

In FY2025, the revenue came at INR 387 billion, a flat growth as compared to INR 383 billion last year, while EBITDA was 12.7 percent at INR 49 billion, as against 12 percent at INR 46 billion last year. On the other hand, the company PAT came at INR 33 billion, up 26 percent YoY, as against INR 26 billion reported last year.

The company ended FY2025 with net cash of INR 42 billion in hand, as against net debt of INR 890 million last year.

Ashok Leyland reported sales of 195,093 units for FY2025, which was very close to the record high of 197,366 units, with M&HCV buses witnessing its best year with sales of 21,249 units. Export volumes were also amongst its best performance in the recent past at 15,255 units, up 29 percent as compared to 11,853 units last year.

Dheeraj Hinduja, Chairman, Ashok Leyland, said, “Achieving these record-breaking numbers is a matter of immense pride for us. It reflects the resilience of our business and the trust our customers place in us. Given Company’s strong financial performance in the last three years, the Board of Directors has approved a 1:1 bonus share issue. This is on the back of two interim dividends announced for FY25 amounting to 625 percent, or INR 6.25 per share. With our unwavering focus on innovation and customer satisfaction, and thrust in international operations, we are well-positioned for sustained and profitable growth.”  

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said “FY2025 has been another landmark year for us. We’ve set new records in revenue, EBITDA, and profitability. Our margin expansion and robust cash generation reflect the strength of our operations. It also gives us immense satisfaction to achieve our medium-term goal of mid-teen EBITDA in Q4. The company is in a very strong cash position, ending the year with a cash surplus of INR 42.42 billion. This gives us more fuel to further augment our strengths in products and technology, and to offer best-in-class customer experience. We are continuing on our premiumization journey with high focus on delivering exceptional value to our customers. We are now more confident than ever in our ability to gain market share and further improve our price realisation.”

Going forward, the company shared that in addition to electric vehicles led by Switch Mobility, it is also working on alternative fuel strategy including LNG and hydrogen.

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EKA Mobility has been awarded the Automotive Production Linked Incentive (PLI) Certificate (Under Advanced Automotive Technology Vehicles) by the Automotive Research Association of India (ARAI), the designated testing and certification agency under the Ministry of Heavy Industries, Government of India. The certificate highlights EKA’s commitment to advancing India’s clean mobility goals. It also recognises its compliance with the stringent eligibility requirements laid out under the PLI scheme for advanced and indigenized electric vehicle platforms.
Speaking on the respective development, Dr Sudhir Mehta, Founder and Chairman, EKA Mobility, said, “Securing the Automotive PLI Certificate for the EKA bus platform reflects the evolving readiness of India’s EV manufacturing ecosystem to deliver globally benchmarked, locally engineered mobility solutions. The certification affirms the significance of a vertically integrated approach where product development, supply chain localisation and advanced technology converge to create commercially viable electric vehicles.” 
“As India accelerates its transition to sustainable transport, such recognitions help catalyse deeper industry-government collaboration and reinforce the potential of indigenous innovation to lead the shift,” he added. 
EKA Mobility’s electric bus platform has been built with a focus on modular architecture, local value addition, and cutting-edge technology, aligned with the objectives of the PLI scheme and the ‘Make in India’ initiative. Featuring a streamlined monocoque chassis, and lightweight construction, the platform's modularity makes it easy to adapt to varying bus lengths, allowing for versatile configurations based on specific operational needs. The platform is designed to offer a low total cost of ownership (TCO), making electric mobility more profitable, accessible and viable for mass adoption.

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Tata Motors, one of India’s largest commercial vehicle manufacturers, has delivered 20 additional Tata Ace EVs to Magenta Mobility.

This builds upon the MoU signed between the two companies in 2023 to deploy 500 units of Ace EV, which currently stands at 350 units. The Tata Ace EVs are being deployed in 10 cities and have cumulatively clocked over 5 million kilometres, which translates to about 2,500 tonnes of CO2 emissions saved.

Maxson Lewis, Founder & CEO, Magenta Mobility, said, “The Tata Ace EV has consistently delivered operational excellence, high uptime, robust range, and driver-friendly performance. With 350 vehicles already integrated into our fleet and 150 more on the way, we are strengthening our green logistics footprint across India. Tata Motors’ reliable service ecosystem and proven technology make them a key partner in our journey to scale up across 16 cities and decarbonize mobility.”

Pinaki Haldar, Vice-President & Business Head – SCVPU, Tata Motors Commercial Vehicles, added, “We are proud to lead India’s e-cargo transformation by delivering innovative, practical and sustainable mobility solutions. The continued trust shown by Magenta Mobility in the Ace EV is a testament to the vehicle’s performance, reliability and the strength of our growing partnership. We are not just deploying electric vehicles, we are building the foundation for a cleaner, smarter logistics ecosystem across urban India. Each Ace EV delivered is a step forward in democratising zero-emission cargo transport and accelerating the nation’s green mobility movement.”

The Tata Ace EV comes with a certified claimed range of 161km, 1,000kg payload capacity and is powered by Tata Motors’ Fleet Edge connected vehicle platform. To date, the automaker has sold over 8,000 Tata Ace EVs, which have cumulatively accumulated more than 600 million green kilometres.

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Delhi NCR-based electric vehicle company Euler Motors has raised INR 6.38 billion in Series D round, which was led by Hero MotoCorp and British International Investment (BII). With this, the EV maker has raised around INR 14 billion to date.

The company aims to utilise the fund towards expanding its sales & service network, and advancing new product development.

At present, the company’s product portfolio includes an electric three-wheeler the HiLoad EV and StormEV, the country’s first ADAS-equipped four-wheeler Light Commercial Vehicle (LCV).

Saurav Kumar, Founder & CEO, Euler Motors, said, “We are excited to welcome Hero MotoCorp as a strategic investor in Euler Motors. This is a strong vote of confidence both in India’s commercial electric mobility future and in Euler Motors’ execution and products. With this fresh capital and strategic backing from new and existing investors, we are poised to accelerate our scale, continue innovating to deliver superior products, and come a few steps closer towards becoming India’s No. 1 commercial EV brand.”

Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp, said, “The strategic investment in Euler reinforces our commitment to accelerated growth through both organic and inorganic expansion, while highlighting the power of collaboration and adaptability in an ever-evolving market. As a global automotive leader, Hero MotoCorp is driven by sustainability, innovation and customer-centric progress. As we strengthen and diversify our presence in the emerging mobility landscape, this investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market, while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility.”

Abhinav Sinha, Managing Director and Head of Technology, Telecoms and Sustainable Industrials, British International Investment, said, “We are pleased to deepen our partnership with Euler Motors as it scales its operations and brings next-generation EVs to more people in India. Since our initial investment in 2023, Euler Motors have advanced e-mobility adoption and created better jobs. This aligns closely with our ambition to support India’s net zero emissions target and enables us to drive scalable impact in a sector vital to both economic growth and environmental progress.”

Some of the key investors at Euler Motors include Blume Ventures, Athera Partners, Asian Development Bank Ventures, and Piramal Alternatives India Access Fund.

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