Mahindra's Truck & Bus Ambition: $3 Billion Valuation

Mahindra & Mahindra (M&M) is gearing up to transform its trucks and buses division into a multibillion-dollar business, projecting a valuation of $2–3 billion within the next few years. The move indicates the conglomerate’s efforts to scale one of its most promising verticals as it intensifies efforts to grow market share and deepen its footprint in India’s commercial vehicle market.

The Mumbai-based auto major is placing its Mahindra Truck & Bus (MT&B) division at the center of its long-term growth strategy. With current market share hovering around 3%, M&M is targeting a fourfold increase to 10–12% by FY2031.

"We feel fairly confident that we can get to a 10 to 12% growth in market share in FY31," said Dr. Anish Shah, Group CEO & Managing Director of M&M, in a media briefing held on Monday following the company’s financial results.

Described internally as one of the group’s “scalable programs,” the commercial vehicle business is being primed to play a larger role in the Mahindra portfolio. The growth blueprint includes scaling revenue, broadening product reach, and capitalizing on synergies through strategic acquisitions.

Central to this vision is Mahindra’s planned acquisition of SML Isuzu Ltd., a player known for its light commercial vehicles and buses. This deal is expected to immediately lift MT&B’s market share to over 6%, with combined revenues topping ₹5,000 crore. The synergy also accelerates Mahindra’s long-range ambition of capturing more than 20% market share by FY2036.

Mahindra executives highlighted that the MT&B business has performed "very well in the last five years," enabling this strategic step. Like many peers, the business faced a downturn during the Covid-19 pandemic due to reduced demand and supply chain disruptions but has since recovered. While Mahindra is not targeting heavy bus segments like state transportation or intercity routes, it holds a strong position (around 21% market share) in the school and staff bus segments.