Mumbai: The Board of Directors of SML Mahindra Limited has approved the acquisition of Mahindra & Mahindra Limited’s Truck and Bus Division on a slump sale basis, bringing the Mahindra Group’s truck and bus operations under a single focused commercial vehicle company.
The transaction, which is expected to be completed during FY2027, will give SML Mahindra a wider portfolio spanning light, intermediate and heavy commercial vehicles, as well as buses in the above-3.5-tonne segment.
The consolidation is intended to simplify the group’s commercial vehicle structure, increase scale and improve coordination across operations, technology and customer-facing functions. It will also give the combined business broader market coverage at a time when India’s commercial vehicle sector is becoming increasingly competitive and consolidated.
The proposed acquisition follows Mahindra & Mahindra’s purchase of a 58.97% stake in SML Mahindra — formerly known as SML Isuzu Limited — from Sumitomo Corporation and Isuzu Motors Limited on August 1, 2025. A mandatory open offer was subsequently conducted.
The transfer of the Mahindra Truck and Bus Division, or MTBD, to SML Mahindra is being positioned as the next stage of that restructuring, creating a unified platform for the group’s truck and bus operations rather than having different parts of the business travelling in parallel lanes.
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.”
The combined company is expected to draw on SML Mahindra’s established position in light and intermediate commercial vehicles and buses, alongside Mahindra’s presence in heavier truck categories.
Mahindra said the integration could generate synergies in manufacturing, operations, product development, technology and distribution, while allowing both SML and Mahindra-branded products to retain their respective market identities.
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.”
Under the proposed arrangement, SML Mahindra will acquire the Mahindra Truck and Bus business as a going concern through a slump sale. A slump sale generally involves transferring an undertaking for a lump-sum consideration without assigning individual values to each asset and liability.
Manufacturing of Mahindra-branded trucks and buses will continue to be undertaken by Mahindra & Mahindra under a contract manufacturing agreement. The arrangement is intended to maintain continuity of supply and minimise operational disruption during and after the transition.
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.”
The acquisition is expected to provide SML Mahindra with a more comprehensive product range serving multiple transport applications and customer segments. Greater scale could also help the company streamline costs, expand its sales and service reach and respond more quickly to changes in commercial vehicle demand.
The transaction remains subject to completion during FY2027. Once concluded, it will leave Mahindra with a more clearly defined commercial vehicle structure and give SML Mahindra responsibility for steering a significantly broader truck and bus portfolio — a move that could strengthen the group’s challenge to established competitors across India’s commercial vehicle market.
