SML Mahindra Ltd rose 7.5% on September 3 after a senior company executive outlined an ambitious growth strategy for the commercial vehicle segment. The company aims to increase its market share in India’s commercial vehicle market to 10–12% by FY31, up from around 7.2% currently, and plans to cross the 20% mark by FY36. Mahindra & Mahindra acquired a 58.96% controlling stake in SML Isuzu Ltd last year, subsequently renaming the company SML Mahindra Ltd. The company is also targeting a significant shift towards electric mobility. According to a senior executive, SML Mahindra and Mahindra & Mahindra together sold around 16,000 buses last year. The group expects at least 10% of its total bus sales to comprise electric buses within a couple of years of launching its upcoming electric bus portfolio. On the broader commercial vehicle market, the company expects high-single-digit growth in the current financial year. The outlook is supported by replacement demand, particularly in the heavy truck segment, as well as continued momentum in the Indian economy. While the base will be higher in the fourth quarter and partly in the third quarter, for the full year we should still have at least higher single-digit growth. The comments came on the sidelines of an event where Mahindra Truck and Bus, part of the Mahindra Group, unveiled the all-new BLAZO i-TRK, its next-generation heavy commercial truck.

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