Mahindra Truck & Bus, a division of the Mahindra Group, is positioning itself to bridge product gaps and leverage emerging market trends with a strategic eye. Its ambition? To surpass FY19’s peak performance by FY27.
Jalaj Gupta, Business Head of Commercial Vehicles at Mahindra & Mahindra Ltd., is candid about their aggressive ambitions. He outlines a “detailed product strategy roadmap,” aimed at exceeding their previous best from FY19.
Gupta provides insight into the rapidly evolving Indian truck market. In FY19, half of the heavy-duty trucks were multi-axle. Fast forward to 2024, and only a third have multiple axles, while a staggering 55% are the new, heavy-duty 48-tonne trucks. This shift highlights how swiftly customer needs are evolving.
Stricter regulations, such as mandatory AC in 2025 and ABS for smaller vehicles, add layers of complexity. Mahindra’s key lies in predicting “the next game changer” in customer demands.
The heavy-duty truck market is heating up, with the engine choice being a crucial battleground. Most players offer four-cylinder engines even in their largest rigs, over 28 tonnes. However, Mahindra Trucks & Bus adopts a “pick and choose” strategy. Gupta states, “We have decided to compete in the higher tonnage segments,” before adding that it is where customers seek the power and durability of six-cylinder engines. It remains to be seen if their gamble will pay off as they challenge established players favouring four-cylinder engines for budget reasons.
A similar trend is evident in the tipper market, which is shifting towards higher tonnage. Traditionally, lighter tippers with smaller, fuel-efficient four-cylinder engines have dominated. While this may look good on paper, industry veterans like Gupta are skeptical. He questions the practicality of a 40-tonne truck or a massive 55-tonne tractor-trailer running on a mere four-cylinder engine. For such heavy-duty work, a robust six-cylinder engine is essential, especially given the rigorous duty cycles where these vehicles cover nearly 100,000 kilometres annually.
As part of their strategy, Mahindra recently entered the high-volume 28 and 35-tonne tipper segments with the M-Dura. This launch addresses a previous weakness and gives the company a strong foothold in these crucial sub-segments. But they aren’t stopping there. They have set their sights on the heavyweight 48-tonne tipper category. With a project already underway, Mahindra plans to introduce these vehicles later this year, with a full launch slated for next year.
Gupta identifies a few promising applications, including solid waste management and city cleaning, specifically involving suction cup jetting machines. Most municipalities utilise these machines, creating significant potential due to the growing emphasis on smart cities and cleanliness to prevent infections. Another area with high potential is mobile medical units, particularly ambulances, where Mahindra sees a promising difference. While the company doesn’t delve into defence applications, there’s a growing demand for carriers and tippers from border road and paramilitary forces. Although the volume might not match the first two areas, it’s still a noteworthy trend.
Beyond tippers, the construction equipment sector presents another intriguing opportunity for Mahindra in the form of transit mixers, which is gaining significant traction in the infrastructure industry. Mahindra operates in two key segments: motor graders and backhoe loaders. In the motor grader segment, Mahindra holds the top spot in India, commanding a market share of 27% in Q1 FY25. When it comes to backhoe loaders, Mahindra ranks as the fifth player in the country, with a market share of approximately 2.7%.
In the bus segment, approximately 90% of Mahindra’s business comes from school buses, with the remaining 10% from staff transportation. Recently, the company has set its sights on expanding its presence in the staff segment with the introduction of front-door buses, aiming to capture a larger share of this market.
“So it’s a two pronged 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?” Gupta explained.