Mahindra Truck and Bus Division (MTBD) is targeting a significant increase in its share of India’s heavy commercial vehicle (HCV) market, aiming to reach 10-12% by FY31.
MTBD currently commands around 3-3.5% of the HCV market, where the two leading players together account for nearly 80-85%. The company believes changing customer priorities, particularly among younger and more technology-savvy fleet operators, could create greater room for challenger brands.
“Our first plan is to go to 5% market share which we were already there till now. The larger plan is that by F31 the target which we have put of 10-12% market share,” said Vinod Sahay, CEO, Mahindra Truck and Bus.
Tech Integration
The newly launched Blazo-I is central to Mahindra’s strategy, with the company seeking to differentiate the truck through technology and lower operating costs. The truck comes with a 10-nanometre edge AI chip that can detect load and gradient and use inputs such as driver behaviour, gear selection, acceleration and engine RPM to automatically select the appropriate driving mode.
Sahay said the technology addresses a key challenge in commercial vehicles, where drivers may not always use different engine modes optimally.
“For the first time in India, we will have a truck with an on-board AI chip, where the truck on its own will have the capability to detect the load, detect the gradient,” he said.
The Blazo-I is also being positioned around fuel efficiency, which accounts for a significant portion of a truck operator’s operating cost.
Mahindra is promising up to 10% better mileage than the market efficiency benchmark, based on customer feedback that smaller efficiency gains did not provide enough incentive to switch brands.
“So, we said it’s not going to be 1 or 2%, it’s going to be up to 10%,” Sahay said. The improvement, he added, could translate into potential savings of up to ₹15 lakh.
Addressing Uptime
Mahindra is also seeking to address concerns around after-sales support, offering a 48-hour breakdown guarantee under which it will pay customers ₹10,000 per day if a truck is not put back on the road within that period.
“If in case of a breakdown, if we don’t put the truck back in 48 hours, we will pay per day penalty of 10,000 rupees to the customer,” Sahay said.
The company believes higher fuel efficiency, better uptime and technology-led fleet management can strengthen the profitability.
Sahay said newer-generation transporters are increasingly willing to switch brands if a truck can improve their operating economics. “People are increasingly more open to switch brand if there is a brand which can give higher profitability,” he said.
