SML Mahindra Ltd is set to enter the electric bus segment with the launch of its first electric bus during the current financial year (FY27), marking a measured step into green technology for the commercial vehicle (CV) industry.
Vinod Sahay, Chairman of SML Mahindra & Mahindra Advanced Technologies and President – Aerospace, Trucks & Buses, confirmed the development during the company’s recent post-earnings call. “Our electric bus is currently under development, and in this financial year itself, we will be launching that,” he stated.
The company, which was acquired by Mahindra & Mahindra, had earlier showcased the Hiroi.ev electric bus concept at the Bharat Mobility Global Expo 2025. The upcoming launch will be based on this platform and will leverage Mahindra Group’s strong capabilities in electric vehicle technology.
While announcing the EV bus plans, Sahay struck a pragmatic note on the pace of decarbonisation in the commercial vehicle sector. He highlighted that private-sector demand for electric buses remains limited, with most adoption currently driven by government tenders and state transport undertakings (STUs).Electric buses currently account for less than 1% of the overall bus segment in India. Sahay emphasised that the company will evaluate every opportunity — including participation in government tenders — strictly on the basis of commercial viability and returns before scaling up investments.
“We can move in very quickly,” Sahay added, referring to Mahindra’s existing EV expertise, but made it clear that large-scale capex and product expansion will depend on visible market demand and infrastructure readiness.
SML Mahindra believes the broader shift towards greener commercial vehicles will not happen through a single technology. Instead, it expects a gradual transition involving multiple pathways, including electric, CNG, and other alternative fuels, depending on application, route, and economics.
The company plans to take a disciplined approach post-launch, assessing real-world performance, operator feedback, and total cost of ownership before committing to aggressive expansion in the EV space.
The EV bus launch comes on the back of a solid performance in FY26, during which SML Mahindra outpaced industry growth. The company reported healthy gains in market share, particularly in the bus segment, supported by new product introductions such as higher power-to-weight bus platforms and air-conditioned variants.
Integration with the Mahindra Group since the acquisition has been smooth, with synergies in supply chain, technology, and organisation already yielding benefits.
- First EV Bus Launch: Scheduled in FY27 (current financial year)
- Model: Based on the Hiroi.ev platform showcased in 2025
- Approach: Cautious and returns-focused; participation in tenders based on commercial viability
- Market Reality: Private demand limited; most EV bus sales currently to STUs
- Outlook: Gradual shift to green technologies with multiple powertrain options
SML Mahindra’s entry into electric buses reflects the growing policy push for cleaner public transport in India, while also acknowledging the practical challenges of infrastructure, cost, and operator readiness that continue to slow widespread adoption.
The launch will be closely watched by the industry as it signals Mahindra Group’s serious intent in the electric commercial vehicle space. Further details on specifications, range, battery options, and pricing are expected closer to the official rollout.
