SML Mahindra Ltd has approved the acquisition of Mahindra Truck and Bus Division (MTBD) from Mahindra & Mahindra Ltd on a slump sale basis for ₹525 crore.
The transaction, expected to be completed during FY27, is aimed at creating a unified commercial vehicle business with a presence across light, intermediate and heavy commercial vehicles, as well as buses in the 3.5-tonne segment.
Unified commercial vehicle business
The acquisition follows M&M’s purchase of a 58.97% stake in SML Mahindra (formerly SML Isuzu) from Sumitomo Corporation and Isuzu Motors Ltd on August 1, 2025, along with the subsequent mandatory open offer.
The company said the integration will simplify the Group’s commercial vehicle operations, strengthen scale and improve competitiveness through a sharper market focus.
Leadership comment
“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 Mahindra Group Group CEO & MD Anish Shah.
“By combining the strengths of SML and Mahindra Truck & Bus, the two brands will be better placed to expand customer reach, enhance offerings and create greater value for all stakeholders,” said Mahindra & Mahindra Executive Director & CEO, Auto and Farm Sector Rajesh Jejurikar.
Operational continuity
“This acquisition is a transformative step in the evolution of SML Mahindra. The transaction will enhance our competitiveness, improve operational effectiveness and create sustainable long-term value for our customers, employees, partners and shareholders,” said SML Mahindra Executive Chairman Vinod Sahay.
Under the transaction, SML Mahindra will acquire the Mahindra Truck & Bus business as a going concern on a slump sale basis.
Contract manufacturing
Manufacturing of Mahindra-branded trucks and buses will continue to be undertaken by Mahindra & Mahindra under a contract manufacturing arrangement, ensuring continuity of supply and operational stability.
The company said the acquisition will strengthen its ability to serve customers across multiple applications and vehicle segments while improving its competitive position in the evolving commercial vehicle market.