High Demand for New Blazo i-TRK Pushes Mahindra HCV Capacity to 100% Utilization

Mahindra & Mahindra is planning capacity additions for its heavy commercial vehicle manufacturing, after fleet demand for its August-launched Blazo i-TRK line pushed factory utilization to 100%. The capacity constraint comes as Mahindra’s commercial vehicle operations, comprising Mahindra Trucks and Buses Division (MTBD) and SML Mahindra, reported a 37% year-on-year volume increase in Q2 FY27, reaching 8,416 combined units.

In Q2 FY27, MTBD delivered 4,514 units while SML added 3,902 units. The combined commercial entity captured a 5.8% market share in Q2 FY27, up from 5.6% a year earlier, while H1 FY27 market share reached 6.7%. Mahindra is currently executing the merger of SML Mahindra into MTBD, a transaction projected to deliver over ₹100 crore in cost synergies. Management has set a strategic target to capture a 10% to 12% market share by FY31 and secure a top-three position in India’s intermediate commercial vehicle (ILCV) and bus market.

In the heavy commercial vehicle (HCV) segment above 18.5 tonnes GVW, Mahindra’s Blazo i-TRK operates as a challenger product in a concentrated market. The segment is led by Tata Motors (Signa and Prima series), which holds approximately 47% market share, and Ashok Leyland (AVTR series) with nearly 31% share, followed by VE Commercial Vehicles (Eicher Pro series). Mahindra’s HCV range targets long-haul freight, tipping, construction, and container transport applications, using fuel-efficiency guarantees to gain ground.

Mahindra’s Furio trucks and SML buses compete against Eicher’s market-leading Pro series and Tata’s LPT range across regional freight, e-commerce distribution, and school bus fleets. Unlike its challenger position in heavy trucks, Mahindra leads the sub-3.5-tonne LCV category with a 52.3% market share in Q2 FY27, anchored by the Bolero Maxx Pickup. It competes against Tata Motors (Ace and Intra series) and Ashok Leyland (Dost series) in agricultural mandi logistics, rural distribution, and urban last-mile delivery. For the sake of context, M&M classifies its Bolero Maxx Pickup 2T variant under the <3.5T LCV segment internally. However, SIAM classifies this specific variant under 3.5T–7.5T because its Gross Vehicle Weight (GVW) exceeds 3.5 tonnes.