SML Mahindra Shares Surge 7.5% on Ambitious Growth Targets

Shares of SML Mahindra climbed sharply by about 7.5% on September 3, closing at Rs 5,725, after a senior executive outlined ambitious expansion plans for the commercial vehicle maker. Vinod Sahay, President of Trucks & Buses and Executive Chairman of SML Mahindra, said the company aims to raise its commercial vehicle market share to 10-12% by FY31 from the current 7.2%. Looking further ahead, the firm targets crossing 20% share by FY36. These goals come a year after Mahindra & Mahindra acquired a controlling stake in the former SML Isuzu and rebranded it as SML Mahindra. Sahay also highlighted progress on electrification. The company plans to convert at least 10% of its total bus portfolio to electric vehicles within a couple of years of launching its e-bus range. Combined, SML Mahindra and Mahindra & Mahindra sold around 16,000 buses last year. On the broader market outlook, Sahay expects high single-digit growth in the commercial vehicle segment for the current financial year. He pointed to rising replacement demand, particularly for heavy trucks, and India’s overall economic momentum as key drivers. The comments were made on the sidelines of the launch of Mahindra’s new BLAZO i-TRK heavy commercial truck. Investors responded positively to the clear growth roadmap and electric vehicle ambitions.