Finshots Daily Mahindra boards the trucks and buses boom
May 3, 2025
Mahindra & Mahindra is making waves by investing heavily in the electric trucks and buses market. The company has acquired a substantial stake in SML Isuzu, aiming to rev up its production in an under-electrified commercial vehicle sector. They delve into the challenges and competitive dynamics they'll face in expanding their footprint. Tune in for insights on how this strategic move could reshape the future of transportation in India!
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Mahindra Acquires SML Isuzu Cheaply
- Mahindra is acquiring a 59% stake in SML Isuzu for 555 crore rupees, nearly 60% below market price.
- This deal boosts Mahindra's positioning in trucks and buses with profitable operations and an EV-ready product line.
Mahindra Expands Truck Market Share
- Mahindra dominates light commercial vehicles under 3.5 tons with 52% market share but has just 3% in trucks and buses above 3.5 tons.
- The acquisition doubles its truck and bus market share to 6%, aiming for 10-12% by 2031.
Trucks and Buses Major Polluters
- Trucks and buses are only 8% of vehicles but contribute 35% of India's road transport emissions.
- Electrifying buses is key, as their fleet is under-electrified, making this a major opportunity to reduce emissions.