Mumbai – Mahindra & Mahindra Ltd (M&M) just hit the commercial vehicle gym and bulked up—big time. In a move that screams “No more Mr. Light Commercial Vehicle,” Mahindra has announced the acquisition of a 58.96% stake in SML Isuzu Ltd. for ₹555 crore at ₹650 per share. That’s not just a handshake deal—it’s a horn-blaring declaration that Mahindra wants a bigger slice of the truck-and-bus pie.
Currently holding a lean 3% market share in the >3.5-tonne CV segment (compared to a rather swole 52% in <3.5-tonners), Mahindra now plans to double that to 6% overnight—with a roadmap to hit 10–12% by FY31 and go full beast mode at 20%+ by FY36.
SML Isuzu, a name that’s been ferrying people and parcels since 1983, isn’t just another nameplate. With a market share of 16% in the ILCV bus segment, revenues crossing ₹2,196 crore, and an EBITDA of ₹179 crore in FY24, it brings both legacy and legs. The company runs a tight ship—profitable, frugal, and engineering-savvy. Or in Mahindra-speak: a synergy goldmine.
As part of the transaction, Mahindra will buy out Sumitomo Corporation’s 43.96% stake and Isuzu Motors’ 15%, leaving no seat empty in this boardroom bus. An open offer for another 26% stake from public shareholders is on its way, in accordance with SEBI regulations. If all goes according to plan, this strategic pit stop will be cleared by the Competition Commission of India and wrapped up by the end of 2025.
Dr. Anish Shah, Group CEO & MD of Mahindra Group, revved up expectations by stating, “This acquisition accelerates our 5x growth ambition in emerging sectors. It’s not just a deal—it’s a strategic ignition.”
Rajesh Jejurikar, Executive Director and CEO – Auto & Farm Sectors, chimed in with, “With SML’s trusted badge and Mahindra’s muscle, we’re aiming for full-spectrum dominance. More customers, more leverage, and a truckload of opportunities.”
Behind the scenes, Kotak Investment Banking steered the finances while Khaitan & Co handled the legal paperwork—because every good CV move needs a co-driver.
For now, Mahindra has the engine running and SML in the passenger seat—but make no mistake, they’re driving this one straight into the heart of India’s CV battleground.
