Outlining the journey of M&HCVs for the last 12 years and how they have reflected IIP growth in India, Jayesh Shelar, Head – Product Management Group, Mahindra Truck & Bus Division, Mahindra & Mahindra Ltd, mentioned, “The last decade was one of discovery and presented key challenges like the 3 emission cycles. The BS IV to BS VI emission norm transition was the fastest in the world.” In his presentation as part of the webinar organized by S&P Global Mobility- formerly IHS Markit Automotive- (as part of their 2022 Automotive Solutions Webinar Series) under the theme ‘Indian MHCV Outlook – Is the Future Truly Electrifying’, Shelar expressed that the industry recovered quickly at a GACR of almost 14.8 percent – from the slowdown of FY2014 to the high of FY2019 – by displaying resilience and strong fundamentals. He spoke about the challenge posed by railways starting from 2010. “The rising fuel prices, a shift towards eco-friendly logistics, and an increase in technology have pushed the vehicle cost up,” he added.  

Describing the journey of M&HCV segments as a decade of discovery to a decade of disruption, Shelar said, “There were limited brands in India in 2010. By 2030 there will be multiple brand options available.” Drawing attention to a change in the customer profile, he mentioned, “The entry and exit barriers have come down and will ease further. From being acquisition and resale value sensitive in 2010, customers are now looking at Total Cost of Ownership (TCO). They are ready to experiment with new technologies and brands.” Pointing at a shift to higher capacity engines, Shelar said, “A movement towards battery-operated vehicles is also taking place. Fuel cell technologies are catching up and power requirements are ignificantly going up.” Of the opinion that average speeds have gone up and regulations and infrastructure have improved, he informed, “Trucks are traveling up to 450 km a day as compared to 275 km in 2010. By 2030, they will travel up to 700 km per day.”  

Highlighting rising affinity for technologies like telematics, Shelar mentioned, “A shift from transport to logistics model is taking place.” He drew attention to the TCO of an electric vehicle (despite high acquisition cost) being lower in comparison to the running cost of a diesel and natural gas vehicle over five years. “Fuel cost in diesel and natural gas vehicles is about 55 to 60 percent whereas, in case of the electrical vehicle, it is 14 percent,” quipped Shelar. Underlining the government’s pledge to be net zero by 2030 through measures like 500 gigawatts of non-fossil fuel electricity generation and an increase in natural gas production among others, he said, “Electric vehicle technology is relevant event though issues like high initial acquisition price and charging time will take some time to resolve.”

Drawing attention to key drivers like the FAME policy, stringent emission norms, higher compliance cost, and new business models against challenges like the high initial acquisition cost of EVs, range anxiety, developing charging infrastructure, and battery performance, Shelar said that fuel cell is the long-term technology for M&HCVs. In his presentation, Paritosh Gupta, Analyst – M&HCV Forecasting, S&P Global Mobility, averred that the global M&HCV industry headwinds include the Russia-Ukraine conflict and supply chain constraints. “The forecast for 2022 alone is a drop of about 150,000 units, which is 4.4 percent of the entire market size,” he added. Informing that major degradation has come from Europe and North America, Gupta mentioned, “In 2022, the European and North American markets have dropped by 86,000 units and 38,000 units respectively. A lot of volume from central and eastern Europe has been lost and the possibility of sales moving up smartly in the next three years is less.”  

Stating that South Asia, Middle East, and African regions are showing optimism, he explained, “The South Asian market is primarily driven by the performance of the Indian market over the last two quarters. The Chinese market was the only one in 2020 among the key regional M&HCV markets to report positive growth numbers.” Underlining China’s slowing economic growth due to factors like a highly stringent pandemic policy, ithdrawal of pandemic state support, and a shift from road to rail for bulk materials, Gupta expressed, “A 26 percent drop in 2022 and another 1.6 percent drop in 2023 is expected before recovery starts in 2024,” Announcing that the North American forecast is largely positive even though the potential for growth remains limited, he stressed on rising inflation, increasing interest rates, and manufacturing constraints. “We expect fleets to add capacity with the supply chain situation improving in 2023,” quipped Gupta.  

Describing that the Western European market is estimated to remain flattish while the Central and Eastern European market is estimated to drop by 28 percent, Gupta pointed at the Russia-Ukraine conflict and supply constraints as the reasons. Western European markets are facing challenges like raw material and truck price increase whereas the Eastern-Central European markets are facing sanctions, stoppage of production by foreign OEMs, and the possibility of Chinese OEMs setting up shops in Russia, he said. Stressing that South Asia was the fastest growing market in 2021, led by India outgrew expectations, Gupta revealed that India accounts for around 60 percent of the M&HCV sales in the region. “In 2022, the South Asian M&HCV market should grow by 7.2 percent and the figures for 2023 and 2024 will be healthy double-digit ones,” he explained. Of the opinion that the factors driving the South Asian M&HCV market include economic and industrial growth, public sector construction spending, the roll-out of new emission norms in Indonesia, comprehensive economic partnership across the region, and an increase in travel, Gupta quipped, “Struggling with chip and other raw material shortage, the Japanese and South Korean markets are expected to be largely flat.” 

Highlighting rising inflation, high import bills, and weaker global demand as Indian M&HCV headwinds, Gupta mentioned, “The outlook is largely positive though not to the extent it was two years back.” “The construction industry spending will command a CAGR of 10.1 percent between 2021 and 2026 and provide a solid impetus for M&HCV growth,” he added. Stating that while the infrastructure segment’s growth will fuel the growth of heavy-duty trucks, Gupta quipped, “The upward growth trajectory of the e-commerce industry towards becoming the second largest by 2034 is indicative of the growth in demand for medium-duty trucks.” Explaining that the rise of e-commerce and medium-duty trucks over the last five years is a parallel journey, he averred, “Expected to grow at a CAGR of 21 percent over the next 8 years as per IBEF, the e-commerce industry will give a huge boost to medium-duty trucks in India in the future.” “The government has also introduced several policies which are aimed at providing growth to the automotive industry,” he added.  

Pointing at the scrappage policy, production-linked incentive scheme, and electrification initiatives, Gupta said, “We see a big tranche of about 50,000 e-buses to come over the next five years” Of the opinion that the monopoly of Tata Motors and Ashok Leyland will continue over the next decade, he averred, “Expect the industry volumes to peak in 2025. Tata Motors will almost touch 200,000 units in 2026.” “In terms of segmental sales, heavy trucks are the largest shareholder in the (M&HCV) market and are expected to clock 275,000 units in 2026 growing at a rate of 7.8 percent,” quipped Gupta. Explaining that MCVs rise will be linked to the rise of e-commerce industry growth and will clock almost 97,000 units by 2026 at a rate of 7.3 percent, Gupta said, “Worst hit by the pandemic, the M&HCV bus segment is expected to pick up in 2022 and reach 54,000 units by 2026.” “The production trend of M&HCVs will be similar to the demand trend in the market. Some buffer will be provided by exports as part of the PLI scheme,” he added.  

On the topic of M&HCV propulsion trends, Manat Bali, Research Analyst, S&P Global Mobility, mentioned, “Electrification is happening at a much higher pace in buses than trucks. About 99 percent of the M&HCV truck market is currently belonging to IC engines comprising gas and diesel fuels. About 75 percent of the bus market is driven by IC engines running on gas and diesel. With electrification initiatives, the market share of e-buses is expected to reach 30 percent in the long run. It will reach about 9.8 percent by 2029. Natural gas market share will increase up to 12 percent by 2029, triggered mainly by increased availability. It will achieve better traction in medium-duty trucks rather than in heavy-duty ones.”

Of the opinion that diesel fuel will see a de-growth of about 9 percent by 2029 in the Indian CV market at the cost of gas and electrification, Bali averred, “The only electrification taking place in the M&HCV segments is in the bus space as of now. In the long-run, the CNG market share will continue to trail that of the e-bus market share.” “Tata Motors will continue to lead the e-bus market followed by BYD and others in the long run,” he added. About the global e-bus market in the M&HCV category, Bali mentioned, “China is a highly ature and dominant player in e-buses. Other regions are moving up with South Asia having a CAGR growth of 46 percent from 2020 to 2029. India will dominate the e-bus market in South Asia by contributing to over 90 percent of the share.” “The factors driving electrification in India include FAME, state schemes, COP26 target, PLI schemes, and taxation,” he added. “The hindrances in electrification include regulatory drawbacks, infrastructure issues, cost concerns, and end-user dilemmas,” Bali concluded.  

Recorded webinar session Available on Demand, please click the link below to watch the session:

https://event.on24.com/wcc/r/3673674/7F886C4E4B36403DD80C623612674EFF?partnerref=motoringtrends
 

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VE Commercial Vehicles (VECV) has announced the appointment of B Srinivas as Managing Director and CEO, effective 1 April 2026.

At present, he serves as the Chief Operating Officer and will now succeed Vinod Aggarwal. He has worked with Eicher for over three decades across product strategy, purchasing, sales and marketing. He previously led the Eicher Bus business and served as Head of Product Strategy and Purchasing between 2022 and 2024.

Aggarwal, who has led VECV for 16 years, will now become the Chairman of the Board. He replaces Sofia Frandberg, who completes her three-year term as Chairperson, and will continue to be on the Board of VECV.

In addition, Rajinder Singh Sachdeva has been nominated to the Board following his retirement as Deputy CEO and Chief Transformation Officer. He replaces Raul Rai, who steps down as Director.

The leadership shift comes as VECV continues its strategy of expanding into new segments and markets. Since its formation in 2008, the joint venture has invested in capacity and technology to increase its presence in the Indian commercial vehicle market.

Siddhartha Lal, Chairman, Eicher Motors (EML), said, “I am delighted with the appointment of B Srinivas as the new Managing Director and CEO of VECV. It strengthens our well calibrated, long-term strategy and continuity at VECV. I have personally worked with Srinivas for over twenty-five years and seen his hands-on and inclusive leadership style. He is a thoughtful and courageous leader, and is willing to make changes and strategic shifts towards achieving the company’s long- term goals. I believe the company will benefit tremendously from his leadership – combining his customer focused approach, technological acumen and collaborative style. I wish him the best in his new role and look forward to working with him.”

Vinod Aggarwal, added, “My heartiest congratulations to Srinivas as he steps into the role of Managing Director & CEO of VECV. With over three decades of experience, he brings along a deep understanding of our legacy, versatile experience of the business and a strategic vision to scale new heights. I am confident he will accelerate our growth trajectory. I wish him great success and look forward to working with him as I transition into my new role as the Chairman of the company.”

B Srinivas, said, “My journey with Eicher has been truly remarkable. Having spent thirty-one years here in various capacities both in commercial and technical roles including the last two years as the Chief Operating Officer of VECV, I am looking forward to embarking on this next phase. I would like to thank the Board of VE Commercial Vehicles. for this opportunity, and entrusting me to drive our growth trajectory alongside my team.”

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Mahindra’s Truck and Bus Division has inaugurated a Sales, Service and Spares (3S) dealership in Hubli, Karnataka, in partnership with Indhu India Motors.

The facility includes seven service bays capable of maintaining more than seven vehicles per day, it also provides driver lodging, 24-hour breakdown assistance and AdBlue supplies. This expansion follows four years of volume growth for the division and brings Mahindra’s national network to more than 200 3S dealerships and 400 secondary service touchpoints.

At present, the Mahindra Group currently holds a 7 percent market share in the Indian truck and bus industry, with a 24 percent share specifically in the Intermediate and Light Commercial Vehicle (I&LCV) bus segment. The company has set a target to increase its total market share to 10-12 percent by FY2031 and over 20 percent by FY2036.

It’s current commercial vehicle range includes the BLAZO X, FURIO, OPTIMO and JAYO models. These vehicles are integrated with iMAXX, a telematics solution designed to provide fleet owners with data and control over transport operations.

The company offers two specific service guarantees for its truck range:

Roadside Support: A guarantee to have vehicles back on the road within 48 hours, or the company pays the customer INR 1,000 per day.

Workshop Turnaround: A guarantee of vehicle turnaround within 36 hours at a dealership workshop, or the company pays INR 3,000 per day.

Vinod Sahay, President – Trucks, Buses & Construction Equipment, said, "Delighted to inaugurate our new state-of-the-art dealership in Hubli. Indhu India Motors becomes another new dealership of Mahindra Trucks and Buses in Karnataka. Together, Mahindra Trucks and Buses and SML now have over 200 3S dealerships and over 400 secondary service touchpoints for trucks and buses across the country, providing world-class customer care to our valued customers. The Mahindra Group now holds close to 7% market share in trucks and buses, with a 24 percent market share in I&LCV buses. We are targeting to increase our market share to 10-12 percent by FY2031 and over 20 percent by FY2036."

Dr Venkat Srinivas, Business Head – Mahindra Trucks, Buses & Construction Equipment, added, “Our obsession with customer-centricity has driven us towards creating disruptive value propositions for our customers. Be it the guaranteed higher mileage of our entire product range, or the most advanced telematics solution – iMAXX, which gives the fleet owners complete control over their transport business or a rapidly growing network of dealerships and other formats of after-sales support paraphernalia, we are committed to impart the best customer experience in the Indian Commercial vehicle industry."

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IVECO BUS has signed two agreements in Uzbekistan to establish Completely Knocked Down (CKD) production of the DAILY minibus and nationwide distribution of its product portfolio. The move marks an expansion of the manufacturer's presence in Central Asia.

Production is scheduled to commence in May 2026 in partnership with Asaka Motors International. Distribution operations will be managed by ASAKA EFVI TRUCK AND BUS JV. The partners have set a target of 500 units in the first year, with plans to increase annual production and sales to 1,000 units within three years.

The CKD project is intended to support the development of an industrial ecosystem in Uzbekistan. By combining engineering with local manufacturing, the initiative aims to facilitate job creation and technical skills transfer within the national automotive sector.

The initial production programme will focus on the DAILY minibus, including diesel and electric versions. The vehicles are intended for use in urban and intercity transport, corporate fleets and tourism. Local assembly is expected to manage the total cost of ownership and reduce delivery times.

Sascha Kaehne, IVECO BUS AMEA Bus Commercial Operations, said, “The agreements signed in Uzbekistan represent an important step in our international growth strategy. By establishing local CKD production and a robust distribution structure, we are building a solid foundation for long-term development in Central Asia.”

Jalilov Avazbek, CEO, Asaka Motors International, added, “We are proud to collaborate with IVECO BUS to deliver advanced transport solutions in Uzbekistan. This partnership strengthens our industrial capabilities and supports the modernization of passenger mobility in the country.”

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NEMBHARAT, a zero-commission ride-hailing platform, has formalised a welfare framework for its commercial driver partners. The scheme includes an INR 1.5 million insurance cover and an employment guarantee within the company's mobility ecosystem.

The insurance is designed to support drivers and their families in instances of accident, illness, or death. World Economic Mobility Limited (WEML), the operator of NEMBHARAT, stated the initiative aligns with the New Labour Laws of 2025 regarding social security for gig and platform workers.

To qualify for the insurance coverage, drivers must operate commercially registered vehicles and complete the National Mobility Star Training Programme. This training is part of a broader effort to standardise service quality across the platform.

NEMBHARAT is introducing non-ride monetisation channels to provide income stability. Drivers who can no longer operate vehicles will be offered roles in sectors linked to the platform, such as: tourism services, inter-city mobility and hospitality logistics.

Governed by the NARAYANIHITI Trust, NEMBHARAT operates on a prepaid, cashless system. The platform does not charge subscriptions or commissions to its drivers. This model is intended to provide clarity on earnings for drivers and predictable fares for passengers.

Dr Kanchi Sharma, Director and COO, WEML, said, “India’s labour laws have laid an important foundation for strengthening worker welfare. In line with this vision, NEMBHARAT aims to support driver partners by enabling financial protection and promoting income stability. As part of expanding earning opportunities beyond ride-based trips, NEMBHARAT is also introducing non-ride monetization channels for its driver partners. Drivers who are unable to continue operating vehicles will be offered alternative roles within sectors linked to the mobility ecosystem. These roles include work across tourism services, inter-city mobility support and hospitality logistics connected to the platform’s network.”

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