The move will consolidate Mahindra Group’s truck and bus operations under a single entity, creating a wider commercial vehicle portfolio spanning light, intermediate and heavy trucks, along with buses.
Mumbai: SML Mahindra Ltd. has approved the acquisition of Mahindra & Mahindra’s (M&M) Truck and Bus Division (MTBD) through a slump sale, marking a significant step in the Mahindra Group’s strategy to consolidate its commercial vehicle business under one organisation. The transaction is expected to be completed during FY2027.
The acquisition follows Mahindra’s takeover of a 58.97 per cent stake in SML Mahindra (formerly SML Isuzu Ltd.) in August 2025 and represents the next phase of integrating the Group’s commercial vehicle operations.
Once completed, the combined entity will offer a comprehensive product portfolio covering light, intermediate and heavy commercial vehicles, alongside buses in the above-3.5-tonne segment. The company believes the integration will simplify operations, improve scale, strengthen competitiveness and create greater synergies across manufacturing, technology and customer-facing functions.
“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,” said Dr. Anish Shah, Group CEO and Managing Director, Mahindra Group, adding that the move aligns with the company’s ambition of building a stronger position in the truck and bus market while creating long-term stakeholder value.
Echoing the strategic intent, Rajesh Jejurikar, Executive Director and CEO – Auto and Farm Sector, Mahindra & Mahindra Ltd., said the integration would combine the strengths of both organisations while preserving the individual market positioning of the SML and Mahindra brands. He noted that the unified business is expected to generate synergies across operations, technology and customer engagement, enabling wider customer reach and enhanced product offerings.
Vinod Sahay, Executive Chairman, SML Mahindra, described the acquisition as a transformative milestone for the company. He said bringing SML and Mahindra Truck & Bus under a single commercial vehicle platform would expand market coverage, strengthen the product portfolio and unlock operational efficiencies, ultimately improving competitiveness and delivering long-term value for customers, partners and shareholders.
As part of the transaction, SML Mahindra will acquire the Mahindra Truck & Bus business as a going concern through a slump sale arrangement. Manufacturing of Mahindra-branded trucks and buses will continue to be undertaken by Mahindra & Mahindra under a contract manufacturing agreement, ensuring continuity of production and uninterrupted supply during the transition.
The consolidation comes at a time when the Indian commercial vehicle industry is witnessing increased competition, electrification and consolidation. By bringing together complementary product portfolios and capabilities, Mahindra aims to create a stronger platform capable of serving a broader range of customer applications while improving operational efficiency and market responsiveness.
The transaction is subject to the completion of customary processes and is expected to be finalised during FY2027.
