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MTBD now has a 27% market share in India's motor grader sector, establishing itself as a significant player.
By Priya Singh
Key Highlights:
Mahindra's Truck and Bus Division (MTBD) has ambitious goals for its construction equipment company, with exports accounting for a fifth of total sales. The division is divided into two primary segments: backhoe loaders under the EarthMaster brand and motor graders under the RoadMaster brand.
In fiscal year 2024 (FY24), MTBD experienced strong growth in both segments. Sales of EarthMaster backhoe loaders hit 1,118 units, a 13% rise year on year. Meanwhile, sales of RoadMaster motor graders increased by 62.7%, reaching 306 units.
MTBD now has a 27% market share in India's motor grader sector, establishing itself as a significant player. However, in the backhoe loader market, MTBD has a more modest 2.7% share, ranking fifth overall.
Jalaj Gupta, Business Head of Commercial Vehicles at MTBD, described the company's strategic objectives: "Our goal is to maintain our leadership in the motor grader segment while also becoming one of the top three players in the backhoe loader industry. Furthermore, we intend for one out of every four construction equipment machines sold to come from the export market."
These targets are set against the backdrop of industry-wide changes, most notably the transition to Bharat Stage V (BS V) emission standards. This change was originally intended for April 2024, however it has been pushed back nine months.
Gupta forecasts an increase in pre-buying activity by the third quarter of FY25. Despite the government allowing the sale of BS IV products manufactured before January 1 for an additional six months, Mahindra is ahead of the game, having already shown off its BS V-compliant range at the Excon event in Bengaluru.
Reviving export goals for trucks and buses
In the truck and bus market, MTBD is aiming to exceed its FY19 export peak, when exports accounted for 10% of total sales. However, the demand for BS VI compliance, encouraged by India's tough pollution standards, has hampered progress.
The production of BS VI parts has caused a backlog in export areas such as Africa, which still require older BS-III parts. Despite these problems, MTBD continues to serve markets in Africa and the SAARC area, although with longer fulfillment periods. Currently, exports contribute for approximately 5% of Mahindra's sales.
Looking ahead, Mahindra has a solid strategy for leveraging its international presence. "In the long term, our strategy is to build on the Mahindra Group's existing footprint across various continents," Gupta said.
The Mahindra Group already has a footprint in South America, Africa, Australia, and other markets. For example, the Scorpio brand is famous in Australia, and Mahindra tractors are well-known in Brazil, where the company is establishing a tractor assembly facility and exporting construction equipment.
South Africa is critical to Mahindra's plan, with a well-established distribution network for construction equipment being expanded to include trucks and buses. According to the top executive, leveraging existing dealer networks allows Mahindra to efficiently enter new markets and expand product sales.
Also Read: Mahindra & Mahindra to Enter Mini Electric Truck Segment
CMV360 Says
Mahindra’s plans show they’re serious about growing and making a mark globally. Even with the challenges of new emission standards, their forward-thinking approach and strong presence in other countries give them a good chance to succeed. Their focus on exports and staying ahead in key areas will be important as they continue to grow.
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