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Informist, Thursday, Sept. 17, 2026

 

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--SML Mahindra: Will ramp up production post integration of M&M CV ops
--CONTEXT: SML Mahindra executive chairman comments in interview
--SML Mahindra: Will enter medium trucks category once engine is developed
--SML Mahindra: Looking to increase dealership base for volume expansion
--SML Mahindra: Aim to add 15 new dealers in next 12 months
--SML Mahindra: Will launch vehicles under SML, Mahindra brands
--SML Mahindra: Will make integrated pdt plan post M&M CV ops integration
--SML Mahindra: Future capex will mostly be on tech, pdt development
--SML Mahindra: Aim to cross 35,000-36,000 unit sales volume in FY27
--SML Mahindra: Aim to democratise technology across products
--SML Mahindra: Have started working on developing EV trucks
--SML Mahindra: See no urgency to launch EV trucks  
--SML Mahindra: Aim to launch EV buses maximum by Q1 FY28
--SML Mahindra: Will retain India focus post M&M CV ops integration

 

By Avishek Rakshit

 

KOLKATA – Aiming for a larger share in the commercial vehicles space in the country, SML Mahindra Ltd. is set to unleash aggressive expansion plans once it completes the integration of its parent Mahindra and Mahindra Ltd.'s commercial vehicles business with itself. The expansion includes entry into new categories where the company is currently not present, production capacity ramp up, an increase in the employee base, and new dealerships. 

 

"It goes into expansion and ramp up phase - huge ramp up. It will be volume ramp up, capacity ramp up, team ramp up and so on," Vinod Sahay, executive chairman of SML Mahindra, told Informist in an interview. He was responding to a question on what happens in the immediate aftermath of the integration. 

 

The business reorganisation, under which Mahindra & Mahindra's truck and bus division is being sold to its listed subsidiary SML Mahindra on a slump-sale basis for INR 5.25 billion, is expected to be completed by January, in line with its initial estimates. The business reorganisation paves way for the automotive company to create a unified truck and bus business under SML Mahindra. Back in July 2025, M&M acquired a 58.97% stake from Sumitomo Corp. and Isuzu Motors Ltd. in SML Mahindra. The transaction made M&M the leading shareholder in SML Mahindra and it became a subsidiary of M&M.

 

After the reorganisation of the business, SML Mahindra will retain both the SML and M&M brands and the respective product portfolios. With these two brands, SML Mahindra is eyeing to increase its 7% market share in commercial vehicles to 10-12% in the coming four years and then increase it further to 20% by 2035-36 (Apr-Mar). 

 

Sahay, who is also the President of Mahindra Aerospace, Advanced Technologies and Trucks & Buses at M&M, and a member of the group's executive board, said the company will continue to focus on the existing categories where it is already present by expanding the portfolio, while introduce new innovative technologies to its products to increase sales. However, it is currently developing engines for the medium commercial vehicles segment and once completed, the company will foray into the segment. 

 

"There are only two segments where we don't play. One is city buses which is a small part of the industry, it is not a big industry. And second is MCV (medium-tonnage commercial vehicles) trucks which we are right now not playing because of lack of engine which we are developing. That segment we will get into. So, we are already there in 80% of the industry," he said.

 

Once the integration is completed, SML Mahindra will start making an integrated product plan for both brands. The capital expenditure plan post the integration is expected to be announced by the end of the current financial year. 

 

"A lot of synergy is going to come in our product planning and accordingly the capex (capital expenditure) plan will be optimised. Some industrial footprint we are looking at re-optimising--whether we need to move some part of the bus production from one factory to another to optimise it, because we have capacity in both. So, one in one factory, we may be making more trucks," Sahay said.

 

Below are the edited excerpts from the interview, where Sahay speaks about the business reorganisation, the roadmap for SML Mahindra, its aggressive plans to increase market share, and other aspects of the company. 

 

Q. In August, your sales exceeded 50% on-year growth. How do you see the demand for the rest of the financial year and do you expect to post similar kind of growth for the year?

A. In August, we grew much faster than the industry, but the industry also had a very good growth of almost 33-34% (on year) because there was a low base in August last financial year. But notwithstanding that, throughout the year, we have been growing faster than the industry. Our aspiration is that both the brands put together, we plan to go to 10-12% market share in next four years and 20% by 2036. Right now, we are around 7% market share. We can achieve it only if we grow faster than the industry.

 

Q. What kind of volume growth are you looking at this financial year?

A. Last financial year, both the brands put together, we did close to 31,500 units. We have already grown this year by almost 20% on year. We expect to outgrow the industry by at least a couple of percentage, so, if we grow at a level of at least 15% (on year), then we should cross 35,000-36,000 unit sales volume for sure this financial year.

 

Q. What is the segment-wise aspiration for the market share gain?

A. In LCV and ICV (light commercial vehicles and intermediate commercial vehicles) buses, when we acquired SML, we were number three player. For the last five months, we have been number two player with almost 27% market share and we are targeting to go to 30% market share in this category.

 

Similarly in LCV and ICV trucks, we have around 12-13% market share and we want to take to 20%. The big focus is now on heavy trucks where we have around 3-4% market share, and our immediate target is to cross 5.5% and then go towards a 10% market share. It's difficult, but it's not that we are kite flying.

 

Q. How do you plan to achieve the intended market share? 

A. One, of course, is through disruptive products and services. As part of the Mahindra DNA, we give more technology than anyone else in the industry. We give much more features at the same level of price point. In a way, we are democratising technology. We are now trying to do the same in commercial vehicles but here the technology is being used for the benefit of the operating economics of commercial vehicles. What is relevant in this category, can we use the artificial intelligence and machine learning to reduce the fuel consumption and improve the fuel efficiency, can we do that to improve the reliability of the truck, can we do to improve the control which the transporter has on the truck? These are a few things that will help us down the line.

 

Q. Do you need to increase your production capacity as well as you inch closer towards your targeted market share gains which will entail higher production?

A. We have to increase the production but not the capacity. We have largely two major plants. The SML plant in Ropar (Rupnagar) in Punjab has a capacity of almost 24,000 units in the first shift. Last financial year, we produced around 16,000 from that, so we have capacity there. Similarly, in Chakan plant in Maharashtra (M&M's primary plant), we have a capacity of 30,000 units and last year, we produced close to 14,000-15,000 units. So, we don't need investment for capacity.

 

Most of our future investment will be around products and technologies, and to increase supplier capacity if we want to, but we have enough headroom for production capacity right now and we don't need to set up a new plant.

 

Q. But once you hit 80?pacity utilisation, you'll need to set up new capacities as well?

A. Yes but we will do it on those production lines only. There is a chassis line where we have enough capacity and there is a bus body building line where we may need to increase capacity, but it is already part of our capex planning which we are doing and we will declare it once the integrated production plan is ready.

 

Q. By when is the business reorganisation plan going to get completed? 

A. We are targeting to do it by December, but it may stretch to January or February.

 

Q. Post the business reorganisation, why not focus on one unified brand only instead of having two brands? 

A. Because the sales channel is different for both the brands. While the back-end production can be combined, in the front-end, there are dealers who have invested in both the brands and there are many cities where we have dealers for both the brands.

 

Also, when doing our own research on whether to continue with both the brands, one thought was we should continue only SML brand for buses and only Mahindra brand for trucks. But when we tested the thought in the market, we realised that the Mahindra brand stands for very high level of fuel efficiency and technology and the SML brand stands for very high level of reliability. 

 

Q. You are focussing on technology as a business driver. Are you offering advanced technology across your portfolio or by when do you plan to introduce advanced technology in all your vehicles?

A. iMAXX which is advanced connected vehicle and telematics platform developed by M&M was first provided in heavy trucks. Now, we have introduced it across the range. One year down the line, we will introduce this technology in light trucks as well.

 

Q. What is the update on commercial electric vehicles which you are currently developing?

A. We are planning to introduce an electric bus either in Quarter 4 (March quarter) of this financial year or Quarter 1 (June quarter) of the next financial year. We have just started the work on EV trucks as right now, the market is very nascent. So, we are not in any kind of urgency for EV trucks. 

 

Q. Don't you see good potential for EV trucks in the country going forward since EV is fast gaining ground?

A. The operating economics of electric vehicles right now is in favour of short time and not to cover long distance. Because of the short distance which an EV can cover, it is a very restricted, which is why we are not seeing that market go in a big way. 

 

Q. You are not present in the transport buses segment which ply in cities for mass transport. Any plans to enter that category?

A. That's a different segment and it's a segment dealing with state transport undertakings and state governments which we have not dealt in past. So, it may or may not be right thing for Mahindra to do, but there is no such plan right now to enter in that segment.

 

Q. What happens immediately after the demerger of the commercial trucks and bus division to SML Mahindra? Will you first consolidate before expansion?

A. No consolidation. It goes into expansion and ramp up phase - huge ramp up. It will be volume ramp up, capacity ramp up, team ramp up and so on.

 

Q. Will you also focus on exports after the business reorganisation?

A. Right now, SML Mahindra does around 8% exports. Mahindra Trucks and Buses, however, hardly have any exports. Using SML Mahindra's export channels, Mahindra Trucks and Buses will try and export but our primary focus is in India.

 

Across North America, Western Europe, India, and China, only the latter two are growing and we already have a 7% market share in India. So, our headroom is huge in India. 

 

Q. What is your dealership base and by how much you plan to increase it?

A. Both the brands put together, we have close to 195 dealerships and we want to add another 15 in next 12 months. By the addition of these, we will be mostly present in some of the markets where we still don't have network presence.

 

Around 220 dealerships will be good enough for us to achieve the 10-12% market share target. End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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