Bengaluru, July 30, 2026: The Board of Directors of SML Mahindra Limited (“SML”) has approved the acquisition of Mahindra Truck and Bus Division (“MTBD”) from Mahindra & Mahindra Limited (“M&M”) on a slump sale basis. The transaction is expected to be completed during FY2027.
The acquisition marks a significant milestone in SML’s growth journey and represents a strategic step for Mahindra Group towards creating a unified Truck & Bus business with a comprehensive presence across light, intermediate and heavy commercial vehicles, as well as buses in the >3.5T CV segment.
Following M&M’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, and the subsequent mandatory open offer, the proposed transfer of MTBD to SML is a natural next step in creating a simplified operating model with sharper market focus, enhanced scale and improved competitiveness.
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.
About Mahindra Group
Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with 324000 employees in over 100 countries. It enjoys a leadership position in farm equipment, utility vehicles, information technology and financial services in India and is the world’s largest tractor company by volume. It has a strong presence in renewable energy, agriculture, logistics, hospitality and real estate.
The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise.
Learn more about Mahindra on www.mahindra.com / Twitter and Facebook: @MahindraRise/ For updates subscribe to https://www.mahindra.com/news-room
About SML Mahindra Limited (Formerly SML Isuzu Limited)
SML, established in 1983, is a listed company with well-recognized brands, strong heritage and panIndia presence in the ‘Truck & Bus’ segment. The company has a market leading position in the ‘ILCV [Intermediate and Light Commercial Vehicles] Buses segment.
About Mahindra Truck and Bus Division (“MTBD”)
Mahindra Truck and Bus is a division of Mahindra & Mahindra Limited, offering a comprehensive portfolio of light, intermediate, and heavy commercial trucks and buses for cargo and passenger transportation. The business is focused on delivering fuel-efficient, technologically advanced, and reliable transportation solutions.
