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.

Comments (0)

ADD COMMENT

Link Copied!

Piaggio Vehicles, one of the leading two-wheeler and three-wheeler manufacturers, has expanded its electric passenger portfolio with the launch of the Ape WavE L3 electric three-wheeler at INR 255,000 (ex-showroom Pune).

The Ape WavE is powered by a 5.4 kWh battery, a 3 kW motor and provides 25 Nm of torque. It reaches a top speed of 40 kmph, features 19 percent gradeability and offers a certified range of 140 km and a claimed real-world range of 110 km. The charging time for the electric three-wheeler is said to be 3 hours and 45 minutes.

The electric three-wheeler features a monocoque chassis & metal body and ground clearance of 180 mm.

Diego Graffi, Chairman & MD, Piaggio Vehicles, said, “India’s electric mobility landscape is evolving rapidly, particularly in the passenger three-wheeler category where customers are looking for dependable and economically viable solutions. With the Ape WavE, we are introducing a product that has been developed specifically to meet the needs of drivers seeking affordable ownership along with superior comfort, safety, and operational reliability. The vehicle reflects our understanding of Indian mobility requirements and reinforces our commitment towards sustainable transportation and livelihood generation across the country.”

Amit Sagar, Executive Vice-President CV Domestic Business and Retail Finance, Piaggio Vehicles, added, “The passenger EV segment continues to witness strong demand, particularly in markets where shared mobility and short-distance transportation play an important role in daily commuting. The Ape WavE has been designed to offer customers an ideal balance between acquisition cost, operational savings, and passenger experience. With robust build quality, low maintenance requirements, strong ride comfort, and trusted Ape reliability, the vehicle is expected to create a strong value proposition for drivers and fleet operators alike.”

Comments (0)

ADD COMMENT

Link Copied!

Mumbai-headquartered automotive major Mahindra Tractors has launched its latest product offering the YuvoTech+ 585 DI V1 in 2WD and 4WD options.

The tractor is powered by a mBULL engine and features a 12F + 3R transmission system, Multi-Speed PTO and a SLIPTO dual-clutch mechanism. It includes a hydraulic system for implements and is designed with power steering and an operator platform.

Harsh Rai, CEO, Mahindra Tractors, said, "We are proud to launch the YuvoTech+ 585 DI V1 across India following its successful introduction in select markets. Built on our fast-growing YuvoTech platform, this tractor combines advanced technology with robust performance and practical features. Its strong acceptance highlights our commitment to delivering quality, durability, and long-term value to farmers. With this nationwide rollout, we aim to empower farmers with a reliable and adaptable solution for their evolving needs."

The tractor is sold with a 6-year warranty through Mahindra dealerships across India.

Comments (0)

ADD COMMENT

Link Copied!

Chennai-headquartered commercial vehicle major Ashok Leyland has partnered with Rosmerta Recycling to facilitate the scrappage of end-of-life commercial vehicles.

The collaboration aims to support the Government of India’s Voluntary Vehicle Modernisation Program and the Naya Safar Scheme, which targets the reduction of transport emissions in the Delhi-NCR region.

As part of the understanding, Ashok Leyland will use its dealer network to provide customers with access to Rosmerta Recycling’s Registered Vehicle Scrapping Facilities. This service includes support for deregistration and statutory documentation. Customers availing the scrappage service can receive value for their vehicles, discounts on new purchases and waivers on road tax and registration fees in accordance with government policy.

Madhavi Deshmukh, National Sales Head, Ashok Leyland, said, "India has a significant population of ageing commercial vehicles, making an organised, transparent and customer-friendly scrappage ecosystem essential. Through our partnership with Rosmerta Recycling, we are making responsible vehicle disposal simpler while enabling customers to transition to newer, cleaner and more efficient commercial vehicles. This collaboration reinforces Ashok Leyland's commitment to sustainable mobility, circular economy principles and reducing emissions across the vehicle lifecycle."

Kartick Nagpal, President, Rosmerta Group, stated, "Our partnership with Ashok Leyland comes at a pivotal time, as the Government's recently approved commercial vehicle replacement initiatives are expected to accelerate organised vehicle scrappage across India. The mandatory scrappage of BS-III and older commercial vehicles through authorised RVSFs – covering an estimated 207,000 vehicles in Delhi-NCR – is a significant step towards cleaner mobility and a stronger circular economy. At Rosmerta Recycling, we remain committed to scientific dismantling, maximising material recovery, and maintaining the highest environmental and regulatory standards to build a sustainable vehicle recycling ecosystem.”

Comments (0)

ADD COMMENT

Link Copied!

The Ministry of Road Transport and Highways (MoRTH) and Eicher Trucks & Buses, a division of VE Commercial Vehicles (VECV), have signed a Memorandum of Understanding (MoU) regarding the replacement scheme for commercial vehicles in the Delhi-NCR region.

Under the agreement, Eicher Trucks & Buses will provide an 8 percent discount on the ex-showroom price of eligible vehicles. CV customers can also receive additional support regarding motor vehicle tax, registration fees, interest subvention and fuel benefits, as defined by the scheme criteria. The process will be managed through a digital platform integrated with the VAHAN database and the vehicle scrapping ecosystem.

S S Gill, Chief Commercial Officer, VE Commercial Vehicles, said, “For over 4 decades, Eicher Trucks and Buses customers have driven modernisation in the Indian CV industry. Carrying this tradition, Eicher Trucks and Buses is pleased to join hands with the Ministry of Road Transport and Highways on their path-breaking policy to replace old and polluting vehicles from the NCR region. Eicher customers will gain from the substantial incentives offered by the Government of India and State Governments of Delhi, Haryana, Uttar Pradesh and Rajasthan under this program."

Comments (0)

ADD COMMENT

Link Copied!