Mahindra Truck And Bus Sees September Sales Slip 8%; Bets on GST 2.0 for Revival

Mahindra & Mahindra Ltd (M&M) has reported a slowdown in its commercial vehicles business for September 2025, even as the company expects demand to rebound in the coming months on the back of the newly implemented GST 2.0 regime.

The automaker’s Truck and Bus business (including SML Isuzu) sold 1,904 units in September, marking an 8% year-on-year decline. While both its cargo (-9%) and passenger (-7%) segments were under pressure, Mahindra highlighted that year-to-date sales have grown 5% to 14,588 units, signalling underlying resilience despite short-term headwinds.

The September numbers reflect customer deferment of purchases, as fleets waited for GST 2.0 to take effect. The updated tax regime has lowered levies on commercial vehicles, and Mahindra expects this to unlock pent-up demand in the coming quarters.

Vinod Sahay, Executive Chairman of SML Isuzu and President – Aerospace, Defence, Trucks, Buses & CE, M&M, said the industry was in a “transition period” with both opportunities and challenges: “The CV industry is navigating a transition period marked by both opportunities from lower GST and ongoing industry challenges. The month of September was partially impacted by deferment of purchase by customers till introduction of GST 2.0. We have passed the full benefit of GST and expect the demand to gradually ramp up.”

Performance mix: 

• Mahindra Truck and Buse (MTBD) sold 954 units in September, down 6% YoY. Cargo vehicle sales fell 9% to 742 units, while passenger buses edged up 4% to 212 units.
   
• SML Isuzu, in which Mahindra holds a majority stake, saw a sharper decline, with sales down 10% to 950 units. Its passenger buses (-10%) and cargo vehicles (-9%) both posted declines.
   
• Combined sales across both entities stood at 1,904 units, against 2,072 a year earlier.
   

However, on a year-to-date basis (April–September 2025), cargo vehicles emerged as a bright spot, growing 15% to 6,884 units, driven by infrastructure spending and improved freight demand. Passenger buses, on the other hand, remained subdued, falling 2% to 7,704 units, reflecting uneven recovery in intercity and staff transportation demand.

Industry Context

The wider commercial vehicle sector has been grappling with mixed signals: strong infrastructure-led freight demand has buoyed the heavy truck segment, while buses and mid-sized cargo vehicles remain pressured by financing constraints and delayed fleet replacement cycles. Industry observers believe GST 2.0, with its lower effective tax burden, could act as a catalyst for purchase decisions that were on hold through Q2 FY26.

For Mahindra, the integration of SML Isuzu into its trucks and buses portfolio is expected to broaden its product offering and deepen its reach in the intermediate CV segment. Analysts suggest the move positions Mahindra to compete more aggressively with established rivals such as Tata Motors and Ashok Leyland.

With the GST relief kicking in, Mahindra is eyeing a stronger second half of the fiscal, though competition in the domestic CV market is expected to remain intense.