Mahindra & Mahindra expects its small commercial vehicle (CV) business to maintain double-digit growth in the second half of FY27, supported by a strong replacement cycle and demand from rural markets, infrastructure activity and urban logistics.
Small CV Demand Gains Momentum
The small CV industry has recorded 20-30% growth, with Mahindra expanding at a similar pace. Nalinikanth Gollagunta, CEO, Automotive Division, Mahindra & Mahindra, said the company expects positive market sentiment and a strong festive season.
The current growth is being driven by:
- Replacement of ageing commercial vehicles
- Rural and agricultural demand
- Infrastructure and construction activity
- E-commerce and quick-commerce deliveries
- FMCG and intra-city logistics
Capacity Expansion to Support Growth
Mahindra is preparing additional production capacity to meet rising demand. The company plans to operationalise overall commercial vehicle capacity of 36,000 units per month shortly.
For the Veero platform, Mahindra has already operationalised capacity of around 3,000-3,500 units per month, while installed capacity can support up to 5,000 units monthly.
Veero Strengthens Mahindra’s Portfolio
Mahindra has sold around 42,000 Veero units since its introduction in September 2024. Its Urban Prosper Platform supports multiple payload configurations, cargo decks and powertrains.
The latest Veero 1.1 XXL CNG offers a 1.1-tonne payload and 2,900mm cargo deck, targeting logistics-intensive applications.
Strong Market Position
Mahindra estimates the sub-two-tonne small pickup market at around 15,000 units a month, where its share reached approximately 49% at the end of FY26.
The automaker also commands around 52% of the CV market below 3.5 tonnes, while holding nearly 63-64% share in larger pickups.
With replacement demand continuing and applications expanding beyond agriculture, Mahindra remains optimistic about sustaining growth in the small CV segment.
