Mahindra begins early work on electric trucks as SML Mahindra readies its first electric bus for a FY27 launch, expanding its EV commercial vehicle range.
Key points
- Mahindra's Electric Truck Plans Take Shape
- Why Short-Haul Routes Come First
- SML Mahindra's First Electric Bus
- How India's Electric CV Market Is Shaping Up
- Mahindra Builds Scale With SML Merger
Mahindra's electric vehicle ambitions are stretching into heavier territory. The company has started early development work on electric trucks, even as SML Mahindra gets its first electric bus ready for a FY27 launch. It's a cautious but deliberate move into a segment where diesel still dominates by a wide margin.
Mahindra's Electric Truck Plans Take Shape
Table of Contents
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1. Mahindra's Electric Truck Plans Take Shape |
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2. Why Short-Haul Routes Come First |
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3. SML Mahindra's First Electric Bus |
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4. How India's Electric CV Market Is Shaping Up |
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5. Mahindra Builds Scale With SML Merger |
Vinod Sahay, President - Trucks & Buses and Executive Chairman of SML Mahindra, confirmed the development during a media roundtable, saying the work is still at an early stage and isn't an immediate priority for a company that continues to see strong growth in conventional diesel trucks. No timeline has been announced yet — the plan, for now, is to have the technology ready and let market demand decide the pace of launch.
It's worth noting this comes right after Mahindra rolled out the Mahindra Blazo i-TRK range on August 14, a new generation of 320 HP diesel trucks. Two very different stories running in parallel — one doubling down on diesel economics, the other quietly laying groundwork for an electric future.
Why Short-Haul Routes Come First
Long-haul electric trucking is a tough sell right now, and Sahay explained exactly why. Heavy trucks often cover close to a lakh kilometres a year, with individual trips running into thousands of kilometres. Giving an electric truck even a 500 km range would need roughly a 2-tonne battery pack — and that weight eats directly into payload capacity, which is the whole point of running a truck in the first place.
That's why Mahindra is eyeing shorter, more predictable routes first — things like cement inbound and outbound logistics, where trucks typically run 150-200 km and can charge at factories or loading points. A pilot hydrogen truck project has also been completed, though Sahay said that product won't arrive until the market and supporting infrastructure are actually ready for it.
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SML Mahindra's First Electric Bus
On the bus side, things are a bit further along. SML Mahindra's first electric bus has been under development since earlier this year and is slated for a FY27 launch. It'll join Mahindra's existing electric commercial vehicle lineup, which already includes models like the Mahindra Zeo in the small commercial vehicle space, along with electric three-wheelers sold through Mahindra Last Mile Mobility.
How India's Electric CV Market Is Shaping Up
India's commercial EV story is playing out at very different speeds depending on the segment. Three-wheelers are leading adoption by a wide margin, followed by light goods vehicles and buses, while medium and heavy electric trucks remain a tiny slice of the market. FADA data shows electric CV retail sales, excluding three-wheelers, more than doubled to 19,454 units in FY26, up 120% from the year before.
Buses have had it comparatively easier because they run on fixed routes and return to depots, which makes planning charging infrastructure much simpler. E-bus sales rose 37% to 5,356 units in FY26 as per Vahan data, while medium and heavy electric truck sales stood at just around 840 units — a clear sign of how early this particular segment still is. The government's PM E-DRIVE scheme is trying to narrow that gap, offering ₹500 crore in support for up to 5,643 electric trucks and ₹4,391 crore for up to 14,028 electric buses.
Mahindra Builds Scale With SML Merger
All this is happening as Mahindra consolidates its conventional truck and bus business too. In July, SML Mahindra's board approved acquiring Mahindra Truck and Bus Division from parent M&M through a slump sale, a move expected to complete during FY27 and bring light, intermediate and heavy commercial vehicles under one unified platform.
The combined business already sold 9,389 vehicles in Q1 FY27, up 11% year-on-year, with electric buses and passenger volumes growing 20% to 5,939 units. Mahindra has said it wants to grow its share of the above-3.5-tonne commercial vehicle market from around 6% today to 10-12% by FY31, and eventually cross 20% by FY36 — with electric trucks expected to play a growing part in that ambition over the coming years.
Frequently Asked Questions On Commercial Vehicles
Q1. When will Mahindra launch its first electric truck?
Ans: Mahindra hasn't announced a timeline yet. The company says it wants the technology ready first and will time the actual launch based on how the market develops.
Q2. Why is long-haul electric trucking harder to achieve than electric buses?
Ans: Long-haul trucks need large, heavy battery packs for range, which cuts into payload capacity, while buses run fixed routes and can charge easily at depots.
Q3. What is the price and payload of the Mahindra Zeo electric mini truck?
Ans: The Mahindra Zeo V1 FSD is priced from around Rs 6.93 lakh ex-showroom and is built as a small electric commercial vehicle suited for urban logistics.
Q4. What kind of commercial vehicle applications suit electric trucks best today?
Ans: Short, predictable routes such as factory-to-warehouse cement logistics are considered better early candidates, since they need smaller battery packs and allow easy charging at fixed points.