SML Mahindra board approves acquisition of Mahindra truck & bus division
New Delhi, July 29
SML Mahindra Limited has approved the acquisition of the Mahindra Truck & Bus Division from Mahindra & Mahindra Limited on a slump sale basis, paving the way for the consolidation of the Mahindra Group's truck and bus operations under a single entity.
The transaction, which is expected to be completed during FY2027, will create a unified commercial vehicle business with a comprehensive portfolio spanning light, intermediate and heavy commercial vehicles, as well as buses in the above 3.5-tonne segment.
The proposed acquisition is aimed at simplifying the group's operating structure while creating greater scale, broader market coverage and sharper focus in the commercial vehicle market. The combined business is also expected to benefit from operational and commercial synergies, improved efficiencies and enhanced competitiveness.
The development follows M&M's acquisition of a 58.97 per cent stake in SML Mahindra, formerly SML Isuzu, from Sumitomo Corporation and Isuzu Motors Limited on August 1, 2025, followed by a mandatory open offer.
The company said the transfer of MTBD to SML represents the next step in creating a focused Truck & Bus business within the Mahindra Group. By bringing together the complementary strengths of SML and MTBD, the unified platform is expected to strengthen customer reach and enable the company to offer a broader range of products across multiple commercial vehicle applications.
Anish Shah, Group CEO and Managing Director of Mahindra Group, said the transaction would simplify the group's commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra.
Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, M&M, said the combination would help unlock synergies across operations, technology and customer-facing functions while preserving the distinct heritage and market positioning of both brands.
SML Executive Chairman Vinod Sahay described the acquisition as a transformative step that would provide greater scale, wider market coverage and a more comprehensive product portfolio.
As part of the transaction, SML will acquire the Mahindra Truck & Bus business as a going concern. Manufacturing of Mahindra-branded trucks and buses will continue to be carried out by M&M under a contract manufacturing arrangement, ensuring continuity of supply and operational stability during the transition.
The unified business is expected to strengthen Mahindra's position in an increasingly competitive and consolidated commercial vehicle market while creating long-term value for customers, employees, partners and shareholders.
— ANI
Reader Comments
Finally some clarity on what they plan to do with MTBD. The truck division has been underperforming for years compared to their SUV success. Let's see if this restructuring actually delivers results or just shuffles chairs on the Titanic. 🙏
As a small fleet operator in Gurgaon, I've had mixed experiences with Mahindra trucks. The new generation needs better service network in tier-2 cities. Hope this consolidation addresses that. Otherwise, acquisition is just paperwork.
Interesting timing—just after they bought out Isuzu's stake. So basically they're merging their own two commercial vehicle arms. This is Mahindra trying to compete with Tata's dominance in heavy trucks. Long road ahead. 🚚
I work in logistics and we use both brands. SML has better buses, MTBD has better service network. If they combine well, customers win. But changing company structures mid-stream always causes hiccups. Hope the transition period FY2027 is managed smoothly.
Honestly, I'm skeptical. Mahindra Auto's strength is SUVs and tractors. Their truck division never really took off against Tata and Ashok Leyland. This feels like rearranging deck chairs. The real challenge is product quality and dealer network, not ownership structure.
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