Mahindra Targets USD 3B Valuation for Truck & Bus Unit by FY2031

Mahindra & Mahindra (M&M), one of India’s leading automotive giants, is setting the wheels in motion to turn its trucks and buses business into a multibillion-dollar venture. With a current valuation target of $2–3 billion, the Mumbai-based conglomerate is charting an ambitious growth path for its Mahindra Truck & Bus (MT&B) division, aiming to significantly expand its presence in the country’s competitive commercial vehicle (CV) market.

Currently holding a modest market share of around 3%, M&M has announced plans to quadruple that figure to 10–12% by FY2031. "We feel fairly confident that we can get to a 10 to 12% growth in market share in FY31," stated Dr. Anish Shah, Group CEO & Managing Director of M&M, during a recent media briefing following the release of the company’s financial results.

A Scalable Engine of Growth

Internally labeled as one of Mahindra’s “scalable programs,” the commercial vehicle vertical is gaining increasing strategic importance. The renewed focus includes expanding revenues, widening product offerings, and leveraging inorganic growth through calculated acquisitions. M&M sees MT&B not just as a standalone division but as a critical growth lever for the broader automotive portfolio.

SML Isuzu Acquisition: A Catalyst for Expansion

A cornerstone of this transformation is Mahindra’s planned acquisition of SML Isuzu Ltd., a recognized name in the light commercial vehicle and bus space. The deal, once finalized, is expected to elevate MT&B’s market share to over 6% instantly, while boosting combined revenues to more than 5,000 crore INR. More importantly, it puts M&M on track for a long-term goal of crossing 20% market share by FY2036.

This acquisition will not only expand Mahindra’s vehicle lineup but also unlock valuable synergies in distribution, production, and technology. It marks a clear shift toward consolidation and scale, both crucial for thriving in a sector that demands volume efficiency and robust after-sales support.

Strategic Segment Focus

While Mahindra has steered clear of competing in the heavy bus categories such as state transport undertakings and long-route intercity services, it has carved out a strong niche in the school and staff bus segment, where it commands approximately 21% market share. This selective market penetration strategy ensures targeted growth without stretching operational bandwidth.

From Pandemic Setbacks to Steady Recovery

Like many in the CV industry, MT&B experienced setbacks during the COVID-19 pandemic, grappling with plummeting demand and disrupted supply chains. However, executives assert that the business has rebounded strongly over the past five years, showing robust performance and gaining enough momentum to warrant this renewed expansion drive.

Looking Ahead

Mahindra’s commercial vehicle vision is bold and clear. With an assertive roadmap anchored in market expansion, product diversification, and strategic acquisitions, the company is betting big on the MT&B division becoming a cornerstone of its future.

If executed successfully, M&M’s push to reshape its truck and bus vertical could mark one of the most significant transformations in India’s commercial vehicle landscape—driven by innovation, consolidation, and a steadfast eye on scale.

For more articles and news, stay updated with 91trucks. Subscribe to our YouTube channel and follow us on Facebook, Instagram, and Linkedin for the latest videos and updates from the automotive world!