Mahindra Truck & Bus Aims to Surpass FY19 Performance by FY27

Key Highlights:

• Mahindra Truck & Bus aims to surpass its FY19 peak performance by FY27.
• Jalaj Gupta outlines a detailed product strategy roadmap for market expansion.
• The Indian truck market is shifting towards heavier 48-tonne trucks.
• Mahindra focuses on six-cylinder engines for higher tonnage segments, prioritizing power and durability.
• Mahindra entered the 28 and 35-tonne tipper segments and plans to launch 48-tonne tippers soon.

Mahindra Truck & Bus, a division of the Mahindra Group, aims to bridge product gaps and leverage emerging market trends with a strategic vision. Their goal is to surpass their peak performance from FY19 by FY27.

Jalaj Gupta, Business Head of Commercial Vehicles at Mahindra & Mahindra Ltd., emphasizes their aggressive ambitions, outlining a "detailed product strategy roadmap" to exceed their previous best from FY19.

Gupta shares insight into India's fast developing truck companies. In FY19, half of heavy-duty trucks had multiple axles. By 2024, only a third of trucks have multiple axles, with the new, heavy-duty 48-tonne trucks accounting for 55%. This move demonstrates how quickly customers' needs are altering.

Stricter Regulations and Market Shifts

New regulations, such as mandatory AC in 2025 and ABS for smaller vehicles, add complexity to the market. Mahindra's strategy hinges on predicting the next major customer demand. The heavy-duty truck market is heating up, with engine choice being a critical factor. 

While most players offer four-cylinder engines in their heavy vehicles, Mahindra adopts a "pick and choose" strategy, focusing on higher tonnage segments with six-cylinder engines to meet customer needs for power and durability.

Tippers and High-Tonnage Segments

The tipper market is also shifting towards higher tonnage. Traditionally, lighter tippers with fuel-efficient four-cylinder engines have dominated. However, for heavy-duty work, a robust six-cylinder engine is essential.

Mahindra recently entered the high-volume 28 and 35-tonne tipper segments with the M-Dura, addressing a previous weakness and establishing a strong foothold. They plan to introduce vehicles in the heavyweight 48-tonne tipper category later this year, with a full launch next year.

Promising Applications and Market Opportunities

Gupta identifies promising applications, including solid waste management, city cleaning with suction cup jetting machines, and mobile medical units like ambulances. 

These areas have significant potential due to the growing emphasis on smart cities and cleanliness. There's also a demand for carriers and tippers from border road and paramilitary forces, though the volume is lower.

Construction Equipment and Bus Segments

In the bus segment, 90% of Mahindra's business comes from school buses, with the remaining 10% from staff transportation. The company aims to expand its presence in the staff segment by introducing front-door buses.

In the construction equipment sector, Mahindra sees opportunities in transit mixers, motor graders, and backhoe loaders. Mahindra holds the top spot in India for motor graders, with a market share of 27% in Q1 FY25, and ranks fifth in backhoe loaders with a market share of 2.7%.

Two-Pronged Strategy

Gupta explains their strategy: "One is that you increase the addressability of products. Secondly, whatever products we have in the market, can we outpace the industry growth and improve your market share?"

Also Read: Mahindra Introduces Mileage Guarantee for BS6 OBD II Trucks

CMV360 Says

Mahindra Truck & Bus's ambitious goals and strategic roadmap show a strong understanding of the evolving market and customer needs. Focusing on higher tonnage segments and addressing new regulations, they are set to surpass past performance. 

Their commitment to robust engines and expanding into new applications demonstrates a forward-thinking approach that could greatly impact the heavy-duty truck and construction equipment sectors.