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Time of India
28-04-2025
- Automotive
- Time of India
SML Isuzu to lead EV charge for Mahindra Truck and Bus biz
Mumbai: Mahindra & Mahindra (M&M) has made major bets on electrification of its 3-wheeler and SUV businesses, but not much for electric trucks and buses yet. And that's one of the key benefits it expects from the ₹550 crore deal to acquire a majority stake in SML Isuzu . Along with an opportunity to strengthen its presence in the Light Commercial Vehicle, Intermediate Commercial Vehicle (I&LCV) markets. It led the electric commercial vehicle space during the last financial year, for the fourth consecutive year, and harbours an ambition to lead the electric SUV race too, but M&M is yet to play in the emerging electric truck and bus segment. And, that's one of the key opportunities it sees in the ₹550 crore investment to acquire a 59 per cent stake in commercial vehicle maker SML Isuzu. Though not a big part of the industry right now, Mahindra sees good prospects for electric buses in the near future. The EV play will be in line with its strategy to focus only on Light Commercial Vehicles (CVs up to 3.5 tons) and Intermediate Commercial Vehicles (CVs with 3.5 to 7.5 tons) with the majority stake acquisition in SML Isuzu. Mahindra Truck and Bus unit is clear neither SML or Mahindra brand will get into the large, inter-city electric bus market. 'We are bringing EVs to a segment like executive coach, school bus, staff bus segments, which have still not seen EVs properly,' says Vinod Sahay, President - Aerospace & Defence, Truck, Buses & CE, Mahindra Group. The earlier announced plan by SML Isuzu to launch its first EV based on a dedicated platform – , during the current quarter will also lead to Mahindra's entry into the tailpipe emission-free buses. buses are claimed to have a driving range of around 200 kilometres on a single charge. SML Isuzu had stated 2-3 hours as the charging time for the EV after its launch at the Bharat Global Mobility Expo in January this year. 'Many corporates and schools, especially the larger ones, are now looking at electric buses because for their green commitment,' says Sahay. Along with EVs, the SML Isuzu stake buy will also give Mahindra an opportunity to enter the CNG commercial vehicle market. In the traditional ICE industry, Mahindra and SML (brand name for SML Isuzu) sell 12,000 - 13,000 units of LCV, ICV buses a year, translating to a market share of around 20 per cent, according to Sahay. The larger strategy While the emerging technology space of EV presents opportunities to tap in the near future, what Mahindra sees as the immediate effect of the stake acquisition is the 'critical mass', which its truck and bus business unit needs for a sustainable business journey. With the new investment, Mahindra gets close to the number two player Eicher in the LCV and ICV bus market with a 22 per cent market share. Eicher's market share is estimated to be 28 per cent, while Tata leads the pack with a share of 38-40 per cent. In the LCV, ICV truck space, Mahindra gets into a double digit market share of 11-12 per cent. 'Adding another 3-5 per cent in the next couple of years, we believe should be possible with the combined network, brand and ecosystem strength, which we get,' says Sahay. He adds that for buses, adding another 3-4 per cent market share is also achievable. In the HCV space, dominated by Tata Motors and Ashok Leyland, Mahindra isn't looking at a 'very large' play, but targets to double its market share to 6% by FY31. Mahindra Truck and Bus says it will 'keep hammering and we'll break it, one point in time'. Its previous best was 5 per cent, achieved before the COVID pandemic. Sahay, who also had stints in the commercial vehicle business in Mahindra, and prior to that in Tata Motors is hopeful that the CV market dominance by only a couple of players can be challenged. The senior executive notes that barring the M&HCV segment, the industry has already 'broken' it. Tata Motors and Ashok Leyland have a combined estimated market share of over 80 per cent in the M&HCV space. The figure is said to stand at around 44 per cent in the LCV, ICV truck and bus market. What Sahay also notes is that resale value isn't as major an infiencer in determining a brand's market acceptance, which could help challenger brands like Mahindra to gain customers if they offer competitive value. Longer ownership cycles of commercial vehicles due to significantly higher acquisition cost is said to be leading to lower value of pre-owned vehicles. With the new inorganic move, Mahindra Truck and Bus also inherits a sales network of 125 outlets, which will enhance its overall sales network strength to around 225 points, 'but it's not that everyone will start selling each other's products immediately'. An equally valuable, if not more, inheritance would be the service station strength of 200 workshops, which is equivalent to what Mahindra Truck and Bus has currently. Synergy leveraging will happen there sooner. 'Sales network has to be thought through. It cannot become automatic,' says Sahay.
Mint
28-04-2025
- Automotive
- Mint
Force Motors Q4: Strong show, but can the momentum last?
Force Motors is back on investors' radar. Earlier this month, the stock was in the news for its entry into the defence sector. This time, it's the company's results for the March 2025 quarter. The light commercial vehicle manufacturer (LCV), which announced its results after market hours on 25 April, reported a significant improvement in its consolidated performance. The company's net profit tripled while revenue grew steadily, reflecting strong operational efficiency and better product mix. So, what drove the company's performance? Can it sustain this momentum in the future? Let's find out. Force Motors reported a whopping 210% year-on-year (YoY) jump in net profit for the March quarter to ₹ 434.7 crores. This was on the back of a one-time exceptional gain of ₹ 394.6 crores. The company received this amount as an incentive under the Madhya Pradesh Industrial Investment Promotion Assistance Scheme. It was sanctioned for FY23 and FY24 and received in March 2025. An increase in revenue also boosted the company's net profit. Revenue rose 17% year on year (YoY) to ₹ 2,356 crores on account of steady demand growth across key segments. The company's revenue stood at ₹ 2,011 crores in the same period last year. Due to the increase in revenue, the company reported an 18% YoY increase in operating profit to ₹ 329 crores. Operating margin also came in marginally higher at 14% despite the increase in raw material, employee, and other expenses. Raw material costs continued to be the largest expense for the company followed by employee benefit expenses and other operating expenses. This is, however, the highest ever operating profit margin reported by the company. Crisil expects margins to stabilize at 12-13% in the medium term supported by sustained healthy product mix, ensuring strong annual cash generation. Net profit margin also expanded 11.5% YoY to 18.5%, reflecting the company's strong profitability. Also Read: Force Motors is shifting gears—will the rally keep rolling? Force Motors also reported a standout performance for the financial year 2025. It was the company's best year ever, with record revenue and net profit, as the company maintained a strong momentum across its businesses. The company's revenue from operations rose 15% YoY to ₹ 8,071 crores driven by demand across segments. Operating profit also followed suit, rising 20% YoY to ₹ 1,093 crores on the back of operational efficiency. Operating margin rose 0.5% YoY to 13.5% even as expenses rose. Overall, the company registered a net profit of ₹ 801 crores, more than double its bottom line of ₹ 388 crores in FY24 on the back of government incentives received in the March 2025 quarter. The decline in finance costs and increase in other income further boosted its net profit for the year. Net profit margin of the company, too, rose 4.4% YoY to 9.9%. Even when adjusting for the exceptional income, Force Motors showed solid progress. The company's profit before taxes & share of joint ventures and exceptional items came in higher by 36% YoY at ₹ 843 crores. The board of directors of the company recommended a dividend of ₹ 40 per share for FY25, signaling confidence in the company's sustainable earnings growth. The dividend payout while generous, still leaves sufficient reserves to fund the company's future expansion plans. Robust ratios & healthy cash reserves The exceptional performance of the company in FY25 resulted in an improvement of many of its financial ratios. While both operating and net profit margins increased in FY25, what really stood out was the improvement in return ratios. Return on equity (RoE) of the company rose to 30.3x from 18.8x in FY24 while return on capital employed (RoCE) rose to 23.4x from 23.1x, both indicating outstanding returns on investment. The company's total equity also increased significantly to ₹ 3,036 crores compared to ₹ 2,257 crores, primarily driven by retained earnings from higher profitability. Borrowings, on the other hand, dropped sharply, resulting in a debt-to-equity ratio of 0.005x for FY25, down from 0.23x in FY24, reflecting a low risk profile. The company's liquidity position remained strong, with a current ratio of 1.5x, up from 1.25x in FY24, supported by robust cash generation from operations. Interest coverage ratio of more than 30x also showed that the company generates enough profit to cover its finance costs multiple times over. Read more | US tariffs, EV slowdown pose global hurdles for Indian auto The company is shifting gears by entering the premium LCV (light commercial vehicle) segment with its high-end LCV - 'Urbania' to capitalize on the growing demand for luxury and high-end commercial vehicles. It also plans to expand its business overseas in Africa, West Asia and Latin America, and grow its exports business. Apart from this, the company plans to enter the electric vehicle (EV) segment. Of the ₹ 2,000 crores it plans for capex over the next 3-4 years, ₹ 200-300 crores is expected to be on EVs. While these plans seem right on the nose, the company could face many hurdles. Any slowdown in the broader economy, disruptions in supply chains, or fluctuations in raw material prices could put pressure on its margins. Exports, too, could see a downturn due to geopolitical issues. For reasons unknown, the company's exports for the month of March dropped by a whopping 77% YoY, with only 94 units shipped in the month compared to 420 units in March 2024. Sales data for the month also revealed that the company's total sales increased only marginally to 3,700 units, up 0.87% from 3,668 units in the year-ago period. While this could be a temporary blip, it cannot be ignored. Then there are execution risks associated with its EV expansion plans. Regulatory changes around emissions, safety standards, and EV policies could demand further investments or even delay product launches. The sector is also highly competitive with companies such as Tata Motors , and Mahindra & Mahindra having already made an entry into the segment. While the company reported robust results for the quarter and the year, shares of the company did not respond with the same enthusiasm. The stock is up only marginally while the Sensex is up more than 1,000 points. Earlier this month, the stock had fallen over 7% after the company announced a fall in exports in its sales data for March 2025. However, since then the stock has recovered, rising steadily. It is up 1.6% over the last month and over 40% in the past six months. Despite the recent dip in share price, the stock is still expensive, trading at price to book value of 4.04x, a 190% premium to its five-year average of 1.39x. Also Read: Hero MotoCorp has hit a speed bump—can it rebound? Going ahead, Force Motors appears well-positioned financially to continue its growth trajectory. For FY25, the company's management targeted a top-line growth of 10-15% and was successful in meeting that target. However, for the next two years, it plans to grow at a rate of 40%, which will require immense financial discipline and stability. So far, the company seems to be checking all the boxes required to make the jump – a sharp rise in profitability, healthy cash reserves and a virtually debt-free status. It also has many expansion plans underway including a big EV push on the horizon, which could take it to the next level. However, EV expansion plans, while promising, carry execution risks. Achieving a 40% growth rate will also require favourable external conditions. While Force Motors is well-positioned today, careful navigation of these risks will be key to realizing its ambitious growth aspirations. For more such analyses, read Profit Pulse. Ayesha Shetty is a research analyst registered with the Securities and Exchange Board of India. She is a certified Financial Risk Manager (FRM) and is working toward the Chartered Financial Analyst (CFA) designation. Disclosure: The author does not hold shares in any of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers should conduct their own research and consult a financial professional before making investment decisions.
Time of India
23-04-2025
- Business
- Time of India
Sanitation workers protest salary delays
Chennai: Several hundred sanitation workers, under the Chennai Corporation Red Flag Union , protested at Ripon Buildings on Wednesday, demanding regularisation of contract workers, overdue salaries and benefits such as Dearness Allowance (DA). They also opposed privatisation of solid waste management and implementation of the Light Commercial Vehicle (LCV) waste collection scheme. "The salary for National Urban Livelihood Mission (NULM) contractors was always paid on the first of each month but delayed by 2-3 weeks for sanitary workers. They received their Feb salary only two days ago. Instead of paying through NULM, the workers suggested the corporation pays them directly," said T Srinivasan, general secretary. The workers also want a stop to converting public transport services into privatised LCV schemes and want skilled operators hired directly rather than through contractors.
Yahoo
08-04-2025
- Automotive
- Yahoo
UK van market declines for fourth straight month, reports SMMT
The UK market for new light commercial vehicles (LCVs) experienced a decline for the fourth consecutive month in March 2025, with deliveries down by 3.2%. According to the Society of Motor Manufacturers and Traders (SMMT), 51,221 vans, 4×4s, and pick-ups were registered. The trade body attributed the decline to weak business confidence impacting investment in new models. The largest vans saw a 10% decrease in registrations, with 32,025 units accounting for 62.5% of the market. Medium-sized vans and 4×4s also reported declines of 8.5% and 18.9%, respectively. However, demand for smaller vans increased for the 13th month, soaring by 60.8% to 1,585 units, capturing 3.1% of the market. In addition, pick-up registrations surged by 40.6% in March, with 8,107 units joining UK roads. This increase is driven by businesses investing in these vehicles ahead of fiscal measures affecting double-cabs, which will be treated as cars for benefit-in-kind and capital allowance purposes from April. The SMMT urged the UK Government to delay these fiscal measures for at least one year, citing potential negative impacts on sectors contributing to economic growth. These measures could deter investment, keeping older, more polluting vehicles on the road and reducing tax revenues. Despite these challenges, demand for battery-electric vans (BEVs) weighing up to 4.25t grew for the sixth consecutive month, with a 40.3% increase to 4,215 units. BEVs now represent 8.3% of the market in the first quarter of 2025, thanks to significant manufacturer investment. The Plug-in Van Grant remains crucial in supporting BEV uptake, though current levels are below the government's 16% zero-emission market share mandate for 2025, the SMMT said. To achieve this target, urgent action is needed to enhance LCV infrastructure and implement effective regulations. SMMT CEO Mike Hawes said: 'Vans, pick-ups and 4×4s are critical for business operations across the UK so four months of falling investment is concerning and reflects weak confidence, with further constraints set to impact the pick-up segment. 'It is positive, however, that electric uptake continues to rise thanks to growing model choice. Even so, with demand still well below 2025 ambitions, suitably bold plans for infrastructure rollout and workable regulation are needed to grow operator confidence and the investment that is needed.' In contrast, the UK's new car market saw a 12.4% growth last month with 357,103 units, marking the best March performance since 2019. "UK van market declines for fourth straight month, reports SMMT" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Associated Press
14-03-2025
- Automotive
- Associated Press
Stellantis Pro One and IVECO team up for the supply of two electric IVECO-branded vans
Stellantis Pro One and IVECO announced today a collaboration that provides for the European commercialisation of two 100% electric vehicles under the IVECO brand, produced by Stellantis Pro One These models, sold and serviced exclusively by the official IVECO network in Europe, will widen the IVECO line-up of electric vehicles, both in the Mid-Size and Large Van segments, and will be produced at Stellantis' plants in Atessa (IT), Gliwice (PL), and Hordain (FR) This represents a significant collaboration in the commercial vehicle sector, committed to the transition towards sustainable mobility with a long-term horizon. The launch of the new models is in fact scheduled for mid-2026, based on a ten-year agreement AMSTERDAM/TURIN, March 14, 2025 – Stellantis Pro One, the Stellantis N.V. business unit dedicated to commercial vehicles, and IVECO, the brand of Iveco Group N.V. (EXM: IVG) that designs, manufactures and markets light, medium and heavy commercial vehicles, today announce the signing of agreements for the supply of two all-electric Light Commercial Vehicles (LCVs) to IVECO for the European market. They will be based on the Stellantis Pro One mid-size and large van all-electric platforms, ranging from 2.8 to 4.25 Gross Vehicle Weight (GVW). Stellantis Pro One will manufacture the vans at its plants in Atessa (Italy), Gliwice (Poland) and Hordain (France) and deliver the vehicles to Iveco Group. The Group will then distribute the vehicles on the European market – including the United Kingdom – through its established sales and service channels. With a GVW of respectively 2.8 to 3.1 tons and 3.5 to 4.25 tons, the two future IVECO vans will complement the brand's battery electric offer for the European market and extend it into this lighter weight segment, providing customers with a broader choice of products to cover all applications. These vehicles expand and enhance IVECO's LCV portfolio alongside the iconic eDaily, produced in Italy in the historic IVECO plant in Suzzara and electrified in the Brescia facility. The two companies foresee the commercialisation of the new models by mid-2026, based on a ten-year supply. This represents a significant collaboration in the commercial vehicle sector, a commitment to the transition towards sustainable mobility with a long-term horizon. Fundamental in IVECO's choice of partner was the expertise of Stellantis Pro One and its commitment to making a substantial contribution to the reduction of carbon dioxide emissions. Luca Sra, President, Truck Business Unit, Iveco Group, said: 'We are excited to add two innovative and versatile battery electric vans to our Light Commercial Vehicle line-up, boosting our competitiveness in the van segment. By choosing to partner with Stellantis Pro One, we are leveraging the extensive know-how and strong presence in Italy and Europe that historically tie our companies. I am confident that this winning collaboration will benefit our European customers, in particular for the success of their last-mile logistics businesses.' 'We are proud to collaborate with an Italian and world-leading company like IVECO,' says Jean Philippe Imparato, Chief Operating Officer of Stellantis for Enlarged Europe, 'and this happened because we are European LCV market leaders thanks to our operational excellence, the quality of our products, and our ability to develop battery drive technology, which helps reduce polluting emissions and protect the environment.' About Stellantis Pro One Stellantis Pro One is dedicated to leading the global commercial vehicle market with the most efficient portfolio of products, 20,000 dedicated touchpoints and competitive services, bringing exceptional solutions from the Citroën, FIAT Professional, Opel, Peugeot, Ram and Vauxhall brands to professional customers. One of seven accretive businesses in the Dare Forward 2030 strategic plan, Stellantis Pro One targets a doubling of revenues, a 40% electric vehicle mix with battery, hydrogen fuel-cell and range-extending propulsion technologies, over-the-air update capabilities for each new vehicle from 2026, a suite of connected services dedicated to improving business customer efficiency, and innovative autonomous solutions. As such, Stellantis Pro One will strongly contribute to achievement of the Dare Forward 2030 objectives to reach a 100% passenger car BEV sales mix in Europe and 50% passenger car and light-duty truck BEV sales mix in the United States by 2030. Stellantis Pro One is fully part of the company ambition to become a carbon net zero corporation by 2038, all scopes included, with single-digit percentage compensation of remaining emissions. About Stellantis Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world's leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It's best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit About IVECO IVECO is a brand of Iveco Group N.V. (EXM: IVG). IVECO designs, manufactures and markets a wide range of light, medium and heavy commercial vehicles, off-road trucks and vehicles suitable for any body type. It constantly innovates and extends its product portfolio to provide every customer with the vehicle that matches their mission precisely. IVECO's full-line offer is designed around the Driver's needs to ensure an excellent experience with a focus on safety and comfort. A wide range of advanced digital, connectivity-enabled services developed to help fleet owners run their fleet efficiently enhance IVECO's complete transport solution. IVECO pursues its decarbonisation strategy through a multi-energy approach that includes the further development of bio-methane, battery electric and fuel cell technologies. IVECO manages production sites in 7 countries throughout Europe, Asia, Africa, Oceania and Latin America. 3,500 sales and service outlets in over 160 countries guarantee technical support wherever an IVECO vehicle is at work. IVECO drives the road of change by powering the transformation of the transport industry, propelled by the ambition to be the most reliable partner and full-line player for its customers. For further information, please contact: About Iveco Group N.V. Iveco Group N.V. (EXM: IVG) is the home of unique people and brands that power your business and mission to advance a more sustainable society. The seven brands are each a major force in its specific business: IVECO, a pioneering commercial vehicles brand that designs, manufactures, and markets heavy, medium, and light-duty trucks; FPT Industrial, a global leader in a vast array of advanced powertrain technologies in the agriculture, construction, marine, power generation, and commercial vehicles sectors; IVECO BUS and HEULIEZ, mass-transit and premium bus and coach brands; IDV, for highly specialised defence and civil protection equipment; ASTRA, a leader in large-scale heavy-duty quarry and construction vehicles; and IVECO CAPITAL, the financing arm which supports them all. Iveco Group employs 36,000 people around the world and has 19 industrial sites and 31 R&D centres. Further information is available on the Company's website Media Contacts:
