Mahindra Disrupts India's Heavy Truck Market with Over 6-Fold Sales Growth

India's medium and heavy-duty commercial vehicle market is witnessing its most significant competitive shake-up in years, with Mahindra emerging as an unexpected disruptor in a segment long dominated by a trio of manufacturers, according to a research report by International Council on Clean Transportation (ICCT). While Tata Motors remains the market leader with substantial sales volumes, its dominating position has eroded considerably, creating openings that Mahindra has exploited with remarkable aggression -- growing its presence more than six-fold in just four years and thus, altering the competitive landscape of India's crucial freight transport sector.

Mahindra's Rise Reshapes Dynamics

Between 2021 and 2024, Mahindra & Mahindra recorded extraordinary growth in India's medium and heavy-duty vehicle (MHDV) segment, quadrupling its overall market share from 2 per cent to 8 per cent. The manufacturer's performance proved even more dramatic in the rigid truck category, where sales surged from 4,580 units in 2021 to 30,240 units in 2024 -- a remarkable 6.6-fold increase that propelled its market share from 2 per cent to 10 per cent.

This expansion enabled Mahindra to outpace BharatBenz by 2024, establishing itself as a serious contender in a market segment traditionally controlled by Tata Motors, Ashok Leyland, and Eicher Motors, that have collectively maintained over 80 per cent market share throughout the period.

Tata Motors: Shrinking Share

Despite registering a robust 39 per cent increase in absolute sales volumes between 2021 and 2024, Tata Motors experienced a steady erosion of its market position. The company's market share declined from 49 per cent in 2021 to 40 per cent in 2024, representing a nine percentage point loss over the four-year period.

In the rigid truck segment specifically -- which constitutes the majority of MHDV sales -- Tata Motors sold approximately 127,000 units in 2024 whilst maintaining its leadership position. 

However, its market share in this category contracted from 51 per cent in 2021 to 41 per cent in 2024, indicating that competitors are growing substantially faster despite Tata's continued volume leadership.

Ashok Leyland Grabs Steady Ground

Ashok Leyland, the second-largest manufacturer in the MHDV segment, demonstrated consistent market share growth, expanding from 21 per cent in 2021 to approximately 25 per cent in subsequent years. This steady four percentage point gain positions the company as the only other major beneficiary besides Mahindra in the shifting competitive landscape.

Other Players

Eicher Motors maintained a steady 16 per cent market share throughout the 2021-2024 period, demonstrating resilience amidst market volatility. Meanwhile, BharatBenz held a modest share ranging between 4 per cent and 5 per cent, ultimately being overtaken by Mahindra's rapid ascent.

The "Others" category -- comprising manufacturers including Force, SML Isuzu, Volvo Trucks and Buses, Scania, and Mercedes -- collectively accounted for the remaining market share.

Post-Pandemic Boom

The overall MHDV market witnessed dramatic fluctuations during the period. Total sales surged from approximately 288,500 units in 2021 to around 419,800 units in 2022—a substantial 45 per cent increase that exceeded pre-COVID sales figures of around 380,000 units recorded in 2019.

Growth continued in 2023, with sales rising 17 per cent to approximately 490,000 units. However, 2024 marked a turning point, with the market experiencing a marginal contraction of 0.36 per cent compared with the previous year, as sales declined slightly to about 488,300 units. Overall, MHDV sales increased 1.7 times over the four-year period.

Rigid Trucks Lose Market Dominance

Analysis by body style reveals a significant structural shift in buyer preferences. Rigid trucks, whilst remaining the largest category, experienced declining market share throughout the period. In 2021, rigid trucks comprised 81 per cent of MHDV sales with approximately 236,000 units sold. Although sales increased to around 306,300 units in 2022, market share dropped to 73 per cent.

By 2023, rigid truck sales reached 319,700 units whilst market share further declined to 65 per cent. In 2024, sales reduced slightly to 309,800 units, with market share decreasing to 63 per cent -- an 18 percentage point decline over four years, suggesting a structural shift towards tractor-trailers driven by evolving logistics requirements and infrastructure development.

Within the rigid truck category, Ashok Leyland, Eicher Motors, and BharatBenz maintained relatively stable market shares over the period, collectively accounting for 45 per cent-50 per cent of total sales with minimal fluctuation. Mahindra's dramatic expansion from 2 per cent to 10 per cent market share in this segment represents the most significant competitive disruption, raising questions about product strategy, pricing advantages, technological differentiation, or distribution network expansion that enabled such rapid growth.