You can soon ride Mahindra's electric buses in India
What's the story
SML Mahindra, a leading commercial vehicle manufacturer, is gearing up to enter the electric bus segment with its new model, Hiroi.ev. The company will unveil the vehicle during the current financial year (FY27). This move comes amid India's growing focus on cleaner mobility solutions and government support for electric vehicles (EVs).
Market hurdles
STUs are driving e-bus adoption
SML Mahindra's Chairman Vinod Sahay noted that the adoption of electric buses is mainly driven by state transport undertakings (STUs), while private players are hesitant due to cost and charging infrastructure issues. He said, "Barring buses which are linked to STU purchase, we are not seeing any private sector player buying e-buses." The e-bus segment accounted for just 4.5% of total bus sales in FY26 and continues to face challenges like high costs, long payback periods, and inadequate charging infrastructure.
Strategic approach
SML Mahindra to participate in e-bus tenders
SML Mahindra plans to participate in e-bus tenders depending on their commercial attractiveness. Sahay said, "We will evaluate every opportunity on the merit of its commercial viability and returns... we will take appropriate calls." This strategy puts SML Mahindra in competition with established players like PMI Electro, JBM Auto, Olectra Greentech, and EKA Mobility in India's growing electric bus market.
Financial growth
Strong revenue growth for FY26
SML Mahindra's revenue from operations grew by 18.3% to ₹2,837.92 crore in FY26, from ₹2,398.99 crore in FY25. The company also reported a 31.3% increase in profit after tax (PAT) at ₹159.75 crore for the fiscal year ending March 31, 2026.