Outlining the journey of M&HCVs for the last 12 years and how they have reflected IIP growth in India, Jayesh Shelar, Head – Product Management Group, Mahindra Truck & Bus Division, Mahindra & Mahindra Ltd, mentioned, “The last decade was one of discovery and presented key challenges like the 3 emission cycles. The BS IV to BS VI emission norm transition was the fastest in the world.” In his presentation as part of the webinar organized by S&P Global Mobility- formerly IHS Markit Automotive- (as part of their 2022 Automotive Solutions Webinar Series) under the theme ‘Indian MHCV Outlook – Is the Future Truly Electrifying’, Shelar expressed that the industry recovered quickly at a GACR of almost 14.8 percent – from the slowdown of FY2014 to the high of FY2019 – by displaying resilience and strong fundamentals. He spoke about the challenge posed by railways starting from 2010. “The rising fuel prices, a shift towards eco-friendly logistics, and an increase in technology have pushed the vehicle cost up,” he added.  

Describing the journey of M&HCV segments as a decade of discovery to a decade of disruption, Shelar said, “There were limited brands in India in 2010. By 2030 there will be multiple brand options available.” Drawing attention to a change in the customer profile, he mentioned, “The entry and exit barriers have come down and will ease further. From being acquisition and resale value sensitive in 2010, customers are now looking at Total Cost of Ownership (TCO). They are ready to experiment with new technologies and brands.” Pointing at a shift to higher capacity engines, Shelar said, “A movement towards battery-operated vehicles is also taking place. Fuel cell technologies are catching up and power requirements are ignificantly going up.” Of the opinion that average speeds have gone up and regulations and infrastructure have improved, he informed, “Trucks are traveling up to 450 km a day as compared to 275 km in 2010. By 2030, they will travel up to 700 km per day.”  

Highlighting rising affinity for technologies like telematics, Shelar mentioned, “A shift from transport to logistics model is taking place.” He drew attention to the TCO of an electric vehicle (despite high acquisition cost) being lower in comparison to the running cost of a diesel and natural gas vehicle over five years. “Fuel cost in diesel and natural gas vehicles is about 55 to 60 percent whereas, in case of the electrical vehicle, it is 14 percent,” quipped Shelar. Underlining the government’s pledge to be net zero by 2030 through measures like 500 gigawatts of non-fossil fuel electricity generation and an increase in natural gas production among others, he said, “Electric vehicle technology is relevant event though issues like high initial acquisition price and charging time will take some time to resolve.”

Drawing attention to key drivers like the FAME policy, stringent emission norms, higher compliance cost, and new business models against challenges like the high initial acquisition cost of EVs, range anxiety, developing charging infrastructure, and battery performance, Shelar said that fuel cell is the long-term technology for M&HCVs. In his presentation, Paritosh Gupta, Analyst – M&HCV Forecasting, S&P Global Mobility, averred that the global M&HCV industry headwinds include the Russia-Ukraine conflict and supply chain constraints. “The forecast for 2022 alone is a drop of about 150,000 units, which is 4.4 percent of the entire market size,” he added. Informing that major degradation has come from Europe and North America, Gupta mentioned, “In 2022, the European and North American markets have dropped by 86,000 units and 38,000 units respectively. A lot of volume from central and eastern Europe has been lost and the possibility of sales moving up smartly in the next three years is less.”  

Stating that South Asia, Middle East, and African regions are showing optimism, he explained, “The South Asian market is primarily driven by the performance of the Indian market over the last two quarters. The Chinese market was the only one in 2020 among the key regional M&HCV markets to report positive growth numbers.” Underlining China’s slowing economic growth due to factors like a highly stringent pandemic policy, ithdrawal of pandemic state support, and a shift from road to rail for bulk materials, Gupta expressed, “A 26 percent drop in 2022 and another 1.6 percent drop in 2023 is expected before recovery starts in 2024,” Announcing that the North American forecast is largely positive even though the potential for growth remains limited, he stressed on rising inflation, increasing interest rates, and manufacturing constraints. “We expect fleets to add capacity with the supply chain situation improving in 2023,” quipped Gupta.  

Describing that the Western European market is estimated to remain flattish while the Central and Eastern European market is estimated to drop by 28 percent, Gupta pointed at the Russia-Ukraine conflict and supply constraints as the reasons. Western European markets are facing challenges like raw material and truck price increase whereas the Eastern-Central European markets are facing sanctions, stoppage of production by foreign OEMs, and the possibility of Chinese OEMs setting up shops in Russia, he said. Stressing that South Asia was the fastest growing market in 2021, led by India outgrew expectations, Gupta revealed that India accounts for around 60 percent of the M&HCV sales in the region. “In 2022, the South Asian M&HCV market should grow by 7.2 percent and the figures for 2023 and 2024 will be healthy double-digit ones,” he explained. Of the opinion that the factors driving the South Asian M&HCV market include economic and industrial growth, public sector construction spending, the roll-out of new emission norms in Indonesia, comprehensive economic partnership across the region, and an increase in travel, Gupta quipped, “Struggling with chip and other raw material shortage, the Japanese and South Korean markets are expected to be largely flat.” 

Highlighting rising inflation, high import bills, and weaker global demand as Indian M&HCV headwinds, Gupta mentioned, “The outlook is largely positive though not to the extent it was two years back.” “The construction industry spending will command a CAGR of 10.1 percent between 2021 and 2026 and provide a solid impetus for M&HCV growth,” he added. Stating that while the infrastructure segment’s growth will fuel the growth of heavy-duty trucks, Gupta quipped, “The upward growth trajectory of the e-commerce industry towards becoming the second largest by 2034 is indicative of the growth in demand for medium-duty trucks.” Explaining that the rise of e-commerce and medium-duty trucks over the last five years is a parallel journey, he averred, “Expected to grow at a CAGR of 21 percent over the next 8 years as per IBEF, the e-commerce industry will give a huge boost to medium-duty trucks in India in the future.” “The government has also introduced several policies which are aimed at providing growth to the automotive industry,” he added.  

Pointing at the scrappage policy, production-linked incentive scheme, and electrification initiatives, Gupta said, “We see a big tranche of about 50,000 e-buses to come over the next five years” Of the opinion that the monopoly of Tata Motors and Ashok Leyland will continue over the next decade, he averred, “Expect the industry volumes to peak in 2025. Tata Motors will almost touch 200,000 units in 2026.” “In terms of segmental sales, heavy trucks are the largest shareholder in the (M&HCV) market and are expected to clock 275,000 units in 2026 growing at a rate of 7.8 percent,” quipped Gupta. Explaining that MCVs rise will be linked to the rise of e-commerce industry growth and will clock almost 97,000 units by 2026 at a rate of 7.3 percent, Gupta said, “Worst hit by the pandemic, the M&HCV bus segment is expected to pick up in 2022 and reach 54,000 units by 2026.” “The production trend of M&HCVs will be similar to the demand trend in the market. Some buffer will be provided by exports as part of the PLI scheme,” he added.  

On the topic of M&HCV propulsion trends, Manat Bali, Research Analyst, S&P Global Mobility, mentioned, “Electrification is happening at a much higher pace in buses than trucks. About 99 percent of the M&HCV truck market is currently belonging to IC engines comprising gas and diesel fuels. About 75 percent of the bus market is driven by IC engines running on gas and diesel. With electrification initiatives, the market share of e-buses is expected to reach 30 percent in the long run. It will reach about 9.8 percent by 2029. Natural gas market share will increase up to 12 percent by 2029, triggered mainly by increased availability. It will achieve better traction in medium-duty trucks rather than in heavy-duty ones.”

Of the opinion that diesel fuel will see a de-growth of about 9 percent by 2029 in the Indian CV market at the cost of gas and electrification, Bali averred, “The only electrification taking place in the M&HCV segments is in the bus space as of now. In the long-run, the CNG market share will continue to trail that of the e-bus market share.” “Tata Motors will continue to lead the e-bus market followed by BYD and others in the long run,” he added. About the global e-bus market in the M&HCV category, Bali mentioned, “China is a highly ature and dominant player in e-buses. Other regions are moving up with South Asia having a CAGR growth of 46 percent from 2020 to 2029. India will dominate the e-bus market in South Asia by contributing to over 90 percent of the share.” “The factors driving electrification in India include FAME, state schemes, COP26 target, PLI schemes, and taxation,” he added. “The hindrances in electrification include regulatory drawbacks, infrastructure issues, cost concerns, and end-user dilemmas,” Bali concluded.  

Recorded webinar session Available on Demand, please click the link below to watch the session:

https://event.on24.com/wcc/r/3673674/7F886C4E4B36403DD80C623612674EFF?partnerref=motoringtrends
 

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MAN Truck & Bus is adding an AI-supported assistant to its digital fleet management service – Perform. The new tool uses Perform's vehicle usage data and driving style analyses, alongside a knowledge database, to create performance analyses and recommendations for fleet managers.

Following a launch in Austria in spring 2025, the feature is now available to Perform customers in Germany, with other European countries set to follow.

The chat function allows fleet managers to formulate analysis requirements in everyday language. When asked questions such as ‘Which drivers have room for improvement?’ or ‘What recommendations can I give to drivers?’, the AI immediately provides evaluations and concrete recommendations that can be passed on to drivers.

Karl-Maximilian Strobel, Head of Product Management Services, MAN Truck & Bus, said, “Imagine you have a personal assistant who simplifies your everyday life and revolutionises it, like AI does when planning trips or shopping online. An assistant who saves you time and money and gives you new ideas. This is exactly the added value we are now bringing to fleet management with the Digital Fleet Assistant.”

The Digital Fleet Assistant is claimed to provide up to three times faster evaluation of the information. The AI analysis tool evaluates data, including driving behaviour, fuel consumption, use of assistance systems and technical information such as downtime and wear.

This data is linked to a continuously updated knowledge database containing training materials, technical manuals and practical experience. Fleet managers receive evaluations directly in the chat, including recommendations for action tailored to the fleet, such as tips for more economical driving.

Perform is one of MAN's used digital services. The service on the RIO platform accesses data from vehicle use in near real time, providing overviews of vehicle utilisation, driving style and the severity of transport tasks for individual vehicles or entire fleets.

Managers can use this information to draw conclusions about untapped efficiency potential or unnecessary vehicle wear and tear. The data is provided in a neutral and comparable format, enabling an assessment of driver and vehicle performance. Thanks to the interaction between Perform and the MAN Driver App, drivers can also access their individual performance data to improve their driving style independently.

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Tata Motors has announced strong commercial vehicle sales for Q2 FY2026, with total domestic and international sales reaching 94,681 units. This marks a substantial 12 percent increase compared to the 84,281 units sold in Q2 FY2025.

The surge was particularly pronounced in September 2025, which saw a 19 percent YoY increase with 35,862 units sold, up from 30,032 units in September 2024. The company's international business grew significantly with a massive 75 percent growth for the quarter.

Across the second quarter, several segments reported double-digit growth. Small Commercial Vehicle (SCV) Cargo and Pickup grew 11 percent to 34,732 units in Q2 FY2026 (up from 31,399 units in Q2 FY2025). This portfolio saw exceptional performance in September 2025, recording a 30 percent YoY increase.

Intermediate and Light Commercial Vehicle (ILMCV) Trucks also performed strongly, with sales rising 15 percent to 16,845 units for the quarter. The heavy commercial vehicle (HCV) trucks segment posted a modest 5 percent growth, selling 24,056 units in Q2 FY2026. Passenger Carriers grew 5 percent for the quarter, reaching 11,428 units.

Overall domestic sales for commercial vehicles rose 9 percent to 87,061 units in Q2 FY2026, up from 79,931 units in Q2 FY2025.

Girish Wagh, Executive Director, Tata Motors, acknowledged the volatile market conditions but expressed optimism about the company's swift response and future outlook.

“Q2 FY2026 was a mixed quarter for the commercial vehicles industry, start marked by subdued market conditions and ending with a promising resurgence in demand. While July faced headwinds due to monsoon and August reflected cautious sentiment ahead of the GST 2.0 rollout, the onset of the festive season and lower GST rates from late September brought a good recovery in sales, bookings and sentiment," Wagh stated.

He further elaborated on the strategies that led to the strong September performance.

"Following the GST reduction announcement, we acted swiftly and decisively to capture the growth in demand—by enhancing product availability, sharpening our pricing strategy, and intensifying market activations. These initiatives helped us unlock demand across segments, making September our best-performing sales month in FY2026, driven by a strong 30 percent YoY growth in our SCV and PU portfolio led by the new launches, Ace Pro and Ace Gold+. Overall, in Q2 FY2026, Tata Motors Commercial Vehicles delivered sales of 94,681 units, registering a growth of 12 percent over the same period last year. We continue to build strong differentiation for our expansive range of trucks that now offer higher power output of up to 320hp. With smart engineering and a relentless focus on operational efficiency, our trucks remain the preferred choice for fleet owners seeking better performance, higher profits and long-term value.”

Looking ahead, the company anticipates continued growth, driven by key economic indicators and product pipeline.

"Looking ahead, with the festive season underway, improving consumption, and the full impact of GST reforms yet to unfold, we anticipate a strong second half for FY2026. Construction, infrastructure and mining activities will gain momentum, further fuelling demand for trucks and tippers. With a robust pipeline of upcoming launches, and a richer, more customer-aligned product portfolio, we are well-positioned to accelerate this momentum and drive meaningful, broad-based growth across all commercial vehicles segments,” Wagh concluded.

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Mitsubishi Fuso Truck and Bus Corporation (MFTBC) has announced it will participate in the Japan Mobility Show 2025 (JMS 2025), set to run from 30th October to 9^th November 2025, at Tokyo Big Sight.

Under the theme ‘Future Together: A new era of trucks begins – run together with Fuso,’ the commercial vehicle manufacturer plans to showcase its vision for the future of transportation, focusing on advanced solutions to tackle current logistics challenges.

The centrepiece of MFTBC's exhibit will be the world premiere of the COBODI (Connected Load Body) concept, which will be featured on its all-electric light-duty truck, the eCanter.

Described as a unique 'smart body' and 'digital solution' concept, COBODI aims to revolutionise logistics by connecting human-centric body design with Wise Systems, an AI-based automated routing and dispatching solution. This integration is designed to optimise route planning and parcel loading, significantly reducing the burden on drivers, shortening unloading times and enabling more efficient fleet management. MFTBC plans to conduct demonstrations of the COBODI workflow at the show.

In addition to the COBODI concept, MFTBC's booth will feature:

• A World Premiere Vehicle: Details on a new concept vehicle will be announced at a later date.
• Fuso Services & Solutions Area: A display of various solutions supporting logistics efficiency and the transition for businesses to adopt EV trucks.
• Sustainable Future Activities: The company will host interactive activities, including a workshop to create keychains from recycled plastic and an AI chatbot for visitors to learn about carbon-neutral vehicles.

MFTBC’s participation underscores its push to introduce cutting-edge technologies to enhance the efficiency of commercial vehicles and logistics as the industry shifts into a new era.

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Mahindra and Mahindra (M&M), the world's largest tractor company by volume, is selling its entire stake in its wholly-owned Finnish subsidiary, Sampo Rosenlew Oy, to Tera Yatirim Teknoloji Holding Anonim Sirketi (TERA). The agreement was executed via a Share Purchase Agreement (SPA).

Upon completion of the transaction, Sampo Rosenlew will cease to be a wholly-owned subsidiary of Mahindra & Mahindra.

This divestiture marks a strategic move for Mahindra & Mahindra, aligning the company's focus with opportunities that are best positioned to deliver long-term success.

Sampo Rosenlew, which became part of the Mahindra group in 2016, has played a significant role in advancing Mahindra’s capabilities. According to the company statement, some of the technologies developed by the Finnish firm have been ‘instrumental’ in building Mahindra’s farm machinery capabilities.

By transferring ownership to TERA, Mahindra believes it is empowering Sampo Rosenlew to pursue new pathways for innovation and growth. The move is expected to allow the manufacturer to build upon its rich heritage and deep understanding of the Finnish and European markets under new ownership.

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