Commercial vehicle business reports decline amid GST uncertainty and monsoon disruptions
01 Sep 2025 | 4243 Views | By Glenn Noronha
Mahindra & Mahindra Ltd.'s Trucks & Buses business sold 1,701 vehicles in August 2025, marking a 9% decline compared to the same month last year, as the commercial vehicle industry faced headwinds from regulatory uncertainty and weather-related disruptions.
The August performance reflected broader challenges in India's commercial vehicle sector, ...
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Mahindra & Mahindra Ltd.'s Trucks & Buses business sold 1,701 vehicles in August 2025, marking a 9% decline compared to the same month last year, as the commercial vehicle industry faced headwinds from regulatory uncertainty and weather-related disruptions.
The August performance reflected broader challenges in India's commercial vehicle sector, where proposed changes to the Goods and Services Tax (GST) structure created uncertainty among dealers and customers. Heavy rainfall and flooding in northern India further dampened demand during the month.
The combined sales figure includes vehicles from both Mahindra Trucks & Buses Division (MTBD) and SML Isuzu Limited (SML), following Mahindra's acquisition of a majority stake in SML. MTBD contributed 859 units, representing a 3% decline, while SML accounted for 842 units, down 15% year-on-year.
Within the product mix, cargo vehicles demonstrated relative strength with 989 units sold, representing a 5% increase over August 2024. This growth was driven by MTBD's cargo segment, which recorded 668 units (up 4%) and SML's cargo division with 321 units (up 6%).
The passenger vehicle segment faced steeper challenges, with 712 units sold compared to 931 units in August 2024, marking a 24% decline. SML's passenger vehicle sales fell 24% to 521 units, while MTBD's passenger segment dropped 22% to 191 units.
Despite August's decline, the Trucks & Buses business maintained growth momentum for the financial year, with cumulative sales of 12,684 units representing a 7% increase over the corresponding period last year. The year-to-date cargo vehicle segment showed particularly strong performance with 5,772 units sold, up 21% from 4,788 units in the previous year.
"The CV industry remained under pressure in August due to the uncertainty surrounding proposed revisions in GST which impacted both dealer & retail sales. In addition, heavy rainfall & flooding in northern parts of the country also had a bearing on the demand. The upcoming festive season should lead to pickup in demand," said Vinod Sahay, President – Aerospace, Defence, Trucks & Buses, M&M.