Mahindra Uses AI Technology to Challenge HCV Leaders, Targets 5% Market Share

Mahindra is stepping up its presence in India’s heavy commercial vehicle (HCV) segment, using artificial intelligence, new truck products and an expanded sales and service network to compete more aggressively with established players.

The company currently has around 3–3.5% share of the heavy truck market and is targeting 5% market share in the near term. The strategy is focused on improving truck efficiency, reducing operating costs and strengthening Mahindra’s position in the higher-weight commercial vehicle categories.

AI Technology at the Centre of Mahindra’s Truck Strategy

Mahindra is increasingly using AI-based technology and connected vehicle systems in its heavy trucks. The company's new Blazo i-TRK range comes with AI-enabled fuel-management technology designed to help fleet operators improve fuel efficiency.

Mahindra claims that the technology can deliver up to 10% improvement in fuel efficiency, potentially helping operators save significantly on fuel costs over the vehicle's operating life.

The company is focusing on technologies that can improve fuel economy, uptime and overall vehicle productivity, which are major considerations for truck and fleet owners.

Mahindra Targets 5% HCV Market Share

Mahindra currently holds approximately 3–3.5% of India's HCV market. Its immediate objective is to increase this figure to 5%.

India's annual commercial vehicle market is estimated at around 5 lakh trucks and buses, with heavy commercial vehicles accounting for approximately 40–45% of the overall market.

Reaching a 5% share would therefore require Mahindra to significantly increase its annual heavy-truck sales.

Focus on Three Major HCV Categories

Rather than pursuing every category equally, Mahindra is looking to build a stronger position in three key areas:

• 55-tonne tractor-trailers
• 48-tonne multi-axle trucks
• 28-tonne tippers

These categories are important for long-distance transportation, infrastructure development, construction, mining and heavy-duty logistics.

The company wants to establish double-digit market share in these selected categories.

Blazo i-TRK Adds More Firepower

The Mahindra Blazo i-TRK is one of the key products supporting the company's heavy-truck expansion.

The range starts at around ₹29.99 lakh ex-showroom and uses a 7.2-litre, 320 HP mPower diesel engine. The trucks also feature technologies such as cruise control, automatic fuel-management systems and connected-vehicle features.

The higher-power engine and technology package are intended to provide better performance while helping fleet operators control running costs.

Mahindra to Expand Dealership Network

Mahindra is also planning to strengthen its retail and service network.

The company currently operates around 88 Mahindra Truck and Bus dealerships, while SML Mahindra has a network of more than 100 outlets. Mahindra plans to add around 15 more dealerships over the next year, with particular attention to regions where its heavy-truck presence is currently limited.

The company also plans to leverage the wider SML Mahindra network and upgrade selected outlets to support heavy commercial vehicles.

Network Expansion

Replacement Demand Could Boost Heavy-Truck Sales

Mahindra expects the Indian HCV market to benefit from a stronger vehicle replacement cycle.

Truck replacement activity was affected in previous years by the pandemic, regulatory changes and transitions to newer emission standards. These factors led many fleet operators to delay purchases.

The company expects replacement demand to account for more than 20% of industry demand this year, compared with the traditional 10–15% contribution.

Infrastructure development, mining activity and manufacturing growth could further support demand for heavy trucks.

Diesel Remains the Main Focus

Despite increasing interest in alternative powertrains, Mahindra continues to see diesel as the dominant technology for heavy trucks in the immediate future.

The company has already developed a hydrogen-powered truck prototype, showing that it is evaluating alternative technologies. However, widespread adoption of hydrogen-powered commercial vehicles is still considered some distance away.

For now, Mahindra's focus remains on improving the efficiency and economics of conventional diesel-powered heavy trucks.
 

Manufacturing Capacity Offers Room for Growth

Mahindra has significant production capacity available to support its HCV ambitions.

The company's Chakan manufacturing facility has an annual truck production capacity of around 35,000 units, while current production is considerably lower. This means the company can increase output through additional production shifts if demand and market share improve.

Mahindra’s HCV Push Comes at an Important Time

India's commercial vehicle industry is experiencing renewed demand, supported by freight movement, infrastructure spending and replacement requirements.

For Mahindra, the challenge now is to convert its investments in AI technology, new products and network expansion into higher sales and market share.

Moving from around 3–3.5% to 5% HCV market share would represent a significant improvement for the company. With the Blazo i-TRK range, AI-based efficiency technologies and a growing dealership network, Mahindra is aiming to become a stronger competitor in India's heavy-truck market.

The company's strategy ultimately centres on three priorities: better fuel efficiency, lower operating costs and stronger customer support. If these factors translate into higher fleet adoption, Mahindra could make meaningful gains against the established leaders in India's HCV segment