Mahindra Trucks & Buses Faces 8% Sales Dip in September Due to GST 2.0

Mahindra and Mahindra Ltd. reported a decline in its Trucks and Buses sales for September 2025, with the company moving 1,904 vehicles in the month. This marks an 8 percent drop from the same month last year, a shift largely attributed to delays caused by the upcoming GST 2.0 changes.

Division-Level Sales Show Divergent Trends

The company’s commercial vehicle operations now include both the Mahindra Trucks and Buses Division (MTBD) and SML Isuzu Ltd., following Mahindra’s acquisition of a majority stake in SML. Sales in September for the combined business fell from 2,072 units in 2024 to 1,904 units this year. Cargo vehicles were down 9 percent to 1,112 units, while passenger vehicles saw a 7 percent decrease, totaling 792 units.

When broken down further, MTBD sold 954 vehicles, a 6 percent drop from 1,017 last September. SML’s decline was a little steeper, at 10 percent, with 950 units sold compared to 1,055 a year ago. It is interesting to note that the two divisions did not mirror each other perfectly; MTBD showed slightly more resilience, perhaps due to regional or product-specific demand patterns.

Year-to-Date Numbers Tell a Different Story

Even with the September slowdown, Mahindra’s Trucks and Buses business is still on a growth trajectory for the fiscal year-to-date period ending September. Total sales reached 14,588 vehicles, which is a 5 percent increase over the 13,876 vehicles recorded in the same period last year.

Cargo vehicles, in particular, contributed significantly to the growth, rising 15 percent to 6,884 units. Passenger vehicles were not quite as strong, dipping 2 percent to 7,704 units, reflecting perhaps a mix of market saturation and cautious buyer behavior.

Temporary Market Challenges Linked to GST 2.0

Vinod Sahay, Executive Chairman of SML and President of Aerospace, Defence, Trucks, Buses and Commercial Equipment at M&M, explained that the September dip was partly timing-related.

"The CV industry is navigating a transition period marked by both opportunities from lower GST and ongoing industry challenges," he said. Customers appear to have held back purchases as they anticipated the full implementation of GST 2.0.

Mahindra has already passed the GST reductions to buyers and is hopeful that demand will normalize in the coming months. For now, the company seems to be in a holding pattern, waiting for the market to catch up with policy changes.

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