Mahindra’s Truck and Bus Division (MTBD) is setting ambitious goals for its construction equipment segment, aiming for exports to account for a quarter of its sales. The division operates in two main segments: backhoe loaders under the EarthMaster brand and motor graders under the RoadMaster brand.
In the fiscal year 2024 (FY24), MTBD reported significant growth in both segments. Sales of the EarthMaster backhoe loaders reached 1,118 units, marking a 13% increase year-on-year. Meanwhile, the RoadMaster motor graders saw a remarkable 62.7% jump, with 306 units sold. MTBD now boasts a 27% market share in India’s motor grader market, positioning it as a leading player. However, in the backhoe loader market, MTBD holds a more modest 2.7% share, placing it fifth overall.
Jalaj Gupta, Business Head of Commercial Vehicles at MTBD, outlined the company’s strategic goals: “Our focus is to retain our leadership in the motor grader segment and become one of the top three players in the backhoe loader market. Additionally, we aim for one out of every four construction equipment machines sold, to be from the export market.”
These targets are set against the backdrop of industry-wide changes, particularly the transition to Bharat Stage V (BS V) emission standards. Initially scheduled for April 2024, this shift has been postponed by nine months. Gupta anticipates a surge in pre-buying activity by Q3 FY25. Despite the government allowing the sale of BS IV products produced before January 1, for an additional six months, Mahindra is ahead of the curve, having already showcased its BS V-compliant range at the Excon event in Bengaluru.
Reviving export ambitions in trucks and buses
In the truck and bus segment, MTBD is also striving to surpass its FY19 export peak, when exports constituted 10% of total sales. However, the push towards BS VI compliance, driven by India’s stringent emission norms, has slowed progress. The production of BS VI parts has created a bottleneck for export markets like Africa, which still require older BS-III parts. Despite these challenges, MTBD continues to serve markets in Africa and the SAARC region, although with extended fulfillment times. Currently, exports account for about 5% of Mahindra’s sales.
Looking ahead, Mahindra has a robust plan to leverage its international presence. “In the long term, our strategy is to build on the Mahindra Group’s existing footprint across various continents,” Gupta explains. The Mahindra Group already has a strong presence in South America, Africa, Australia, and other regions. For instance, the Scorpio brand is popular in Australia, and Mahindra tractors are well-regarded in Brazil, where the company is setting up an assembly line for tractors and has begun exporting construction equipment.
South Africa plays a crucial role in Mahindra’s strategy, with a well-established distributor network for construction equipment now being utilised for trucks and buses as well. This approach of leveraging existing dealer networks enables Mahindra to efficiently penetrate new markets and expand its product sales, as the top executive pointed out.