The Board of Directors of SML Mahindra Limited has approved the acquisition of Mahindra & Mahindra’s Truck and Bus Division (MTBD) through a slump sale arrangement. The transaction is expected to be completed during FY2027, subject to the necessary approvals and customary closing conditions.
The proposed acquisition represents a major strategic milestone for SML Mahindra and aligns with the Mahindra Group’s vision of creating a unified truck and bus business. Once completed, the combined entity will offer a comprehensive portfolio spanning light, intermediate, and heavy commercial vehicles, along with buses in the above 3.5-tonne commercial vehicle segment.
The move follows Mahindra & Mahindra’s acquisition of a 58.97% stake in SML Mahindra Limited (formerly SML Isuzu Limited) from Sumitomo Corporation and Isuzu Motors Limited on August 1, 2025, followed by the mandatory open offer. Integrating the Truck and Bus Division into SML Mahindra is the next strategic step toward establishing a streamlined operating structure with greater scale, sharper market focus, and enhanced competitiveness in India’s commercial vehicle industry.
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.”
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.”
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.”
By bringing together the complementary strengths of SML and MTBD, the combined business is expected to benefit from enhanced scale, broader market coverage, a strengthened product portfolio and improved operational efficiencies. The transaction will create a stronger platform to serve customers across multiple applications and segments while enhancing the Company’s ability to compete in an increasingly dynamic and consolidated commercial vehicle market.
As part of the transaction, the Company will acquire the Mahindra Truck & Bus business as a going concern on a slump sale basis. Manufacturing of Mahindra branded trucks and buses will continue to be undertaken by M&M under a contract manufacturing arrangement, ensuring continuity of supply and operational stability.
