Mahindra to launch electric bus after disrupting EV market
"We can move in very quickly," says Vinod Sahay of SML Mahindra on electric bus launch
- Apr 20, 2026,
- Updated Apr 20, 2026 7:26 PM IST
SML Mahindra, the newly acquired commercial vehicle subsidiary of Mahindra & Mahindra (M&M), plans to launch its maiden electric bus during the ongoing financial year.
“Right now, our first electric bus is under development, and in this financial year itself, we will be launching that in this current financial year itself. Post that, we will evaluate every opportunity on the merit of its commercial viability and returns," said Vinod Sahay, Chairman of SML Mahindra & Mahindra Advanced Technologies and President of Aerospace, Trucks & Buses.
SML Mahindra’s entry into the e-bus segment comes as its parent M&M raced ahead of JSW MG Motor India to become the second-biggest electric car maker by volume in March.
M&M acquired a 58.96% stake in SML Isuzu for ₹555 crore last year and renamed it SML Mahindra. Of this, 43.96% stake was bought from Sumitomo Corporation and 15% from Isuzu Motors.
“We are mastering electric bus technology. We have very good capabilities for making EVs. We can move in very quickly,” said Sahay, adding that the company will take a call on putting more capex into EV product launches based on the market evolution.
While M&M’s market share in light commercial vehicles weighing less than 3.5 tonnes is at a robust 52%, the automaker lags behind in heavy commercial vehicles. In contrast, it is the leader In SUVs and tractors with 23% and 43% share respectively.
“The market on ICE side is so huge for a player like Mahindra which has 6-7% market share. We are not at 40% market share where 1-2% market of EVs looks attractive. By the time industry is ripe enough, we will be there,” he explained.
India’s electric bus market has been led by purchases from state transport undertakings (STUs). “Barring vehicle purchases by STUs, we are not seeing private players buying electric buses. There are multiple challenges such as cost and charging infra. Currently, the industry’s share is less than 1%,” said Sahay.
SML Mahindra hiked prices by 2-3% on April 15, 2026. “Going forward, we will analyse and see if we want to take more price hikes in the future,” the SML Mahindra chairman said.
Switch Mobility, the electric vehicle arm of Hinduja Group-owned commercial vehicle maker Ashok Leyland, became India’s top-selling electric bus maker for the financial year 2025-26. Switch Mobility sold 1,166 electric buses in FY26, followed by Gurugram-based JBM Auto and PMI Electro Mobility.
SML Mahindra, the newly acquired commercial vehicle subsidiary of Mahindra & Mahindra (M&M), plans to launch its maiden electric bus during the ongoing financial year.
“Right now, our first electric bus is under development, and in this financial year itself, we will be launching that in this current financial year itself. Post that, we will evaluate every opportunity on the merit of its commercial viability and returns," said Vinod Sahay, Chairman of SML Mahindra & Mahindra Advanced Technologies and President of Aerospace, Trucks & Buses.
SML Mahindra’s entry into the e-bus segment comes as its parent M&M raced ahead of JSW MG Motor India to become the second-biggest electric car maker by volume in March.
M&M acquired a 58.96% stake in SML Isuzu for ₹555 crore last year and renamed it SML Mahindra. Of this, 43.96% stake was bought from Sumitomo Corporation and 15% from Isuzu Motors.
“We are mastering electric bus technology. We have very good capabilities for making EVs. We can move in very quickly,” said Sahay, adding that the company will take a call on putting more capex into EV product launches based on the market evolution.
While M&M’s market share in light commercial vehicles weighing less than 3.5 tonnes is at a robust 52%, the automaker lags behind in heavy commercial vehicles. In contrast, it is the leader In SUVs and tractors with 23% and 43% share respectively.
“The market on ICE side is so huge for a player like Mahindra which has 6-7% market share. We are not at 40% market share where 1-2% market of EVs looks attractive. By the time industry is ripe enough, we will be there,” he explained.
India’s electric bus market has been led by purchases from state transport undertakings (STUs). “Barring vehicle purchases by STUs, we are not seeing private players buying electric buses. There are multiple challenges such as cost and charging infra. Currently, the industry’s share is less than 1%,” said Sahay.
SML Mahindra hiked prices by 2-3% on April 15, 2026. “Going forward, we will analyse and see if we want to take more price hikes in the future,” the SML Mahindra chairman said.
Switch Mobility, the electric vehicle arm of Hinduja Group-owned commercial vehicle maker Ashok Leyland, became India’s top-selling electric bus maker for the financial year 2025-26. Switch Mobility sold 1,166 electric buses in FY26, followed by Gurugram-based JBM Auto and PMI Electro Mobility.