Mahindra Plans to Introduce LCV Electric Trucks by 2025

One of India's largest commercial vehicle manufacturers, Mahindra aims to launch electric trucks in the sub 3.5-tonne category by 2025-26. The company plans to introduce a new range of electric four-wheelers as direct competition to Tata Ace and Switch Mobility IeV series.

Mahindra & Mahindra Ltd., one of the leading commercial vehicle manufacturing companies in India, plans to introduce four wheeler electric light commercial trucks (LCV) by the the year 2025. The company aims to launch electric LCVs in the sub 3.5 tonnes category that will complement its existing e-three-wheeler range, the Treo Zor and Treo Zor Grand.

The President of the Automotive Sector at Mahindra & Mahindra - Veejay Nakra said, “M&M is an industry leader in light commercial vehicle category (vehicles with sub-3.5-tonne payload). The electric three-wheeler segment has been an early adopter of electric vehicles and M&M already has a strong portfolio of electric 3-wheelers with a dominant market share. We will consolidate our leadership in LCV sub-3.5 tonne category with a new range of electric vehicles by 2025-26.”

Aim and Need of Mahindra Electric LCVs

Mahindra has the leading position in India's truck manufacturing industry but they have yet to introduce electric LCVs. On the other hand, the two close competitors of the company, Tata Motors and Ashok Leyland, have a strong presence in the segment.

Tata Motors with its Tata Ace EV and Ashok Leyland with Switch Mobility IeV series, both have achieved success in the electric LCV category. Ashok Leyland claims to have received an order for 10,000 units of its IeV trucks to be launched in 2024.

On the other hand, Tata Motors had already signed a MoU to deliver 39,000 units of Ace EV to cities including Delhi, Pune, Mumbai and Bangalore on its launch.

Mahindra is aiming to position itself in the fast evolving electric vehicle market with the launch of an all new LCV range. M&M may look to avail the benefits of the PLI (Production Linked Incentive) scheme for the production of LCVs. It already enjoys the PLI benefits for electric cargo three wheelers.

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Mahindra’s Position in Electric and LCV Segments

According to the Vahan data, Mahindra is the second largest electric truck manufacturer with sales of 304 units from January to November 2023. On the other hand, Tata leads the way with much higher numbers at a total of 2,434 units for the same period.

The LCV category (GVW up to 7 tonnes) is a rewarding segment in India which grew 27% compared to sales of 603,465 units in 2022, according to Elara Capital. M&M Ltd saw an 8.39% YoY growth in commercial vehicle sales for November, on the other hand, its competitors Tata and Ashok Leyland both saw a significant decline, indicating the strong presence it has in the industry.