SML Mahindra to Acquire Mahindra Truck & Bus Division

Mumbai- The Board of Directors of SML Mahindra Limited has approved the acquisition of Mahindra & Mahindra Limited’s Mahindra Truck and Bus Division on a slump-sale basis. The transaction is expected to be completed during FY2027, subject to the required approvals and closing conditions.

The acquisition represents a major step in SML Mahindra’s growth strategy and supports Mahindra Group’s plan to establish a unified truck and bus business. The combined entity will have a broader presence across light, intermediate and heavy commercial vehicles, along with buses in the above-3.5-tonne commercial vehicle segment.

The proposed transaction follows Mahindra & Mahindra’s acquisition of a 58.97% stake in SML Mahindra Limited, formerly known as SML Isuzu Limited, from Sumitomo Corporation and Isuzu Motors Limited on August 1, 2025. The acquisition was followed by a mandatory open offer.

The transfer of the Mahindra Truck and Bus Division to SML Mahindra is intended to create a simplified operating structure, improve scale, strengthen market focus and enhance the competitiveness of Mahindra Group’s commercial vehicle operations.

Dr. Anish Shah, Group CEO & MD, Mahindra Group, said, "The transaction simplifies Mahindra Group's commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra, creating a single focused entity dedicated to growth and leadership in the commercial vehicle sector. This is an important step towards our aspiration of building a leading position in the Truck & Bus segment and creating long-term value for all stakeholders.”

The integration is expected to bring together the complementary capabilities of SML Mahindra and the Mahindra Truck and Bus Division. Potential benefits include operational efficiencies, technology collaboration, a wider customer base and a more comprehensive vehicle portfolio.

Mr. Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd., said, “This partnership is about unlocking the best of both organisations. By combining strengths of SML and Mahindra Truck & Bus, we can drive meaningful synergies across operations, technology and customer-facing domains while preserving the unique heritage and market positioning of both brands. Together, the two brands will be better placed to expand customer reach, enhance offerings and create greater value for all stakeholders.”

The combined commercial vehicle platform will be positioned to serve customers across a wider range of applications and vehicle categories. It is also expected to improve product development, distribution, aftermarket support and customer engagement capabilities.

Mr. Vinod Sahay, Executive Chairman of SML, said, "This acquisition is a transformative step in the evolution of SML Mahindra. By bringing together SML and Mahindra Truck & Business under one unified commercial vehicle platform, we are creating a stronger business with greater scale, broader market coverage and a more comprehensive product portfolio. The combination leverages the complementary strengths of both organizations and is expected to unlock significant commercial and operational synergies. We believe this transaction will enhance our competitiveness, improve operational effectiveness and create sustainable long-term value for our customers, employees, partners and shareholders."

Under the proposed transaction, SML Mahindra will acquire the Mahindra Truck and Bus business as a going concern through a slump sale.

Manufacturing of Mahindra-branded trucks and buses will continue to be undertaken by Mahindra & Mahindra under a contract-manufacturing arrangement. This structure is intended to ensure continuity of vehicle supply and maintain operational stability during and after the integration.

The acquisition is expected to provide SML Mahindra with greater scale, wider market coverage and a strengthened product portfolio. It will also create a more focused platform for Mahindra Group to compete in India’s increasingly consolidated commercial vehicle market.

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