Mahindra merges truck, bus businesses under SML Mahindra in ₹525-crore deal
The transaction, expected to be completed during FY27, will create a comprehensive commercial vehicle portfolio
- Jul 29, 2026,
- Updated Jul 29, 2026 4:46 PM IST
SML Mahindra Ltd on Wednesday approved the acquisition of Mahindra Truck and Bus Division from Mahindra & Mahindra Ltd for a cash consideration of Rs 525 crore.
The proposed acquisition of Mahindra Truck & Bus Division (MTBD) by SML Mahindra will bring Mahindra Group’s truck and bus businesses together under a single focused entity.
The transaction, expected to be completed during FY27, will create a comprehensive commercial vehicle portfolio spanning light, intermediate and heavy trucks, as well as buses, while unlocking greater scale, operational synergies and market competitiveness, the automaker said in a statement.
The merger also strengthens Mahindra's position in the commercial vehicle market. Together, M&M and SML Mahindra command a 52% market share in the light commercial vehicle segment below 3.5 tonnes, although the group's share in heavy commercial vehicles remains modest at around 6%. The company is targeting a 10–12% share in the heavy commercial vehicle segment by FY31 and aims to exceed 20% by FY36.
The businesses have also been growing steadily. In FY26, M&M's Truck and Bus Division reported a 13% year-on-year increase in volumes to 14,832 units, while SML Mahindra posted 17% year-on-year growth to 16,632 units.
SML Mahindra came into being after M&M acquired a 58.97% stake in SML Isuzu from Sumitomo Corporation and Isuzu Motors on August 1, 2025. Following M&M’s acquisition of a majority stake 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, the company 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, said Anish Shah, Group CEO & MD, Mahindra Group.
“This is an important step towards our aspiration of building a leading position in the truck and bus segment and creating long-term value for all stakeholders,” he said.
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.
“This partnership is about unlocking the best of both organisations. By combining the 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,” said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd.
The combined business is expected to benefit from enhanced scale, broader market coverage, a stronger product portfolio and improved operational efficiencies.
“We believe this transaction will enhance our competitiveness, improve operational effectiveness and create sustainable long-term value for our customers, employees, partners and shareholders,” said Vinod Sahay, Executive Chairman of SML.
SML Mahindra Ltd on Wednesday approved the acquisition of Mahindra Truck and Bus Division from Mahindra & Mahindra Ltd for a cash consideration of Rs 525 crore.
The proposed acquisition of Mahindra Truck & Bus Division (MTBD) by SML Mahindra will bring Mahindra Group’s truck and bus businesses together under a single focused entity.
The transaction, expected to be completed during FY27, will create a comprehensive commercial vehicle portfolio spanning light, intermediate and heavy trucks, as well as buses, while unlocking greater scale, operational synergies and market competitiveness, the automaker said in a statement.
The merger also strengthens Mahindra's position in the commercial vehicle market. Together, M&M and SML Mahindra command a 52% market share in the light commercial vehicle segment below 3.5 tonnes, although the group's share in heavy commercial vehicles remains modest at around 6%. The company is targeting a 10–12% share in the heavy commercial vehicle segment by FY31 and aims to exceed 20% by FY36.
The businesses have also been growing steadily. In FY26, M&M's Truck and Bus Division reported a 13% year-on-year increase in volumes to 14,832 units, while SML Mahindra posted 17% year-on-year growth to 16,632 units.
SML Mahindra came into being after M&M acquired a 58.97% stake in SML Isuzu from Sumitomo Corporation and Isuzu Motors on August 1, 2025. Following M&M’s acquisition of a majority stake 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, the company 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, said Anish Shah, Group CEO & MD, Mahindra Group.
“This is an important step towards our aspiration of building a leading position in the truck and bus segment and creating long-term value for all stakeholders,” he said.
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.
“This partnership is about unlocking the best of both organisations. By combining the 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,” said Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd.
The combined business is expected to benefit from enhanced scale, broader market coverage, a stronger product portfolio and improved operational efficiencies.
“We believe this transaction will enhance our competitiveness, improve operational effectiveness and create sustainable long-term value for our customers, employees, partners and shareholders,” said Vinod Sahay, Executive Chairman of SML.