SML Mahindra Mulling to Enter Electric Bus Market in FY2027: Report

SML Mahindra Ltd is preparing to enter the electric bus market in the current financial year, even as the company strikes a cautious note over the pace of industry-wide uptake and the commercial case for large-scale investment in green mobility. Vinod Sahay, Chairman of SML Mahindra & Mahindra Advanced Technologies and President of Aerospace, Trucks and Buses, confirmed the timeline during an earnings call, Autocar Professional has reported. 

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The move brings SML Mahindra into a segment that remains small but is considered significant as commercial vehicle manufacturers position themselves ahead of a broader shift towards cleaner transport. Sahay indicated the company would apply strict financial discipline following the launch.

"So right now, our electric bus is under development, and in this financial year itself we will be launching that," he was quoted as saying.

"Post that, we will evaluate every opportunity on the merit of its commercial viability and returns," he added.

Sahay was candid that battery-electric technology would not be the sole answer for the commercial vehicle sector, particularly at the heavier end of the market. "When it comes to the CV industry, electric is not necessarily the only green technology we are talking about. Especially for heavy trucks, it is hydrogen and fuel cells which will also play a big role, and not just electric," he said.

In his assessment, electric drivetrains are better suited to city buses and lighter commercial vehicles, while heavy-goods transport is likely to gravitate towards hydrogen fuel-cell solutions over time. For the moment, though, demand for electric buses beyond government-backed procurement schemes remains thin.

He attributed sluggish uptake to a combination of high upfront costs, lengthy payback periods and insufficient charging infrastructure. 

"There are multiple challenges related to cost, the payback period, as well as charging infrastructure," he said, noting that the electric bus market currently accounts for less than one per cent of the broader segment.

Despite that, SML Mahindra says it is technically well-placed to scale up swiftly once conditions improve. Sahay pointed to the wider Mahindra Group's existing electric vehicle (EV) expertise as a competitive advantage. 

"When it comes to electric buses, we are mastering the technology. You know, in Mahindra, we have very good capabilities for electric vehicles. We are well aware of the technology, and we can move very quickly," he said.

He was clear, however, that any sizeable capital commitment would be tied to firmer evidence of demand. "When to put more capital to launch the product is a cautious call we will take based on the market evolution," Sahay said.