Mahindra Group Considers Spinning Off Tractors, PVs & Trucks Into Separate Companies

Mahindra Group is actively evaluating the idea of restructuring its core divisions, namely tractors, passenger vehicles and trucks, into standalone entities, as per the news reports. This potential strategic move reflects the group’s focus on unlocking value, improving scalability and strengthening autonomous growth across its diverse business lines.

Mahindra's Demerger Plan and Business Realignment

Mahindra & Mahindra is in internal discussions to carve out its key businesses, namely tractors, passenger vehicles (including EVs) and trucks into independent companies, as per the news reports. 

Currently operating under a single umbrella, these segments may soon function with greater autonomy to streamline operations and attract strategic focus. By separating divisions with distinct growth profiles, Mahindra aims to better align each unit’s capital and innovation roadmap.

Performance Pushes Restructuring Consideration

Between FY21 and FY25, Mahindra's automotive share of total revenue surged from 35% to 57%, while its EBIT contribution grew from 13% to 42%. At the same time, the farm equipment segment’s revenue declined from 33% to 22%, with EBIT dropping from 74% to 27%. Sales of SUVs rose to 5,50,000 in FY25 from 1,90,000 in FY21. Truck sales also saw incremental growth, though the segment is still in an early stage.

Leading the Tractor and SUV Markets

Mahindra's tractor unit captured a 43.3% market share in FY25, up from 38.2% in FY21. In the SUV category, Mahindra strengthened its position with popular vehicles like the Scorpio, Thar and XUV range. The company’s Born Electric platform is also advancing in the evolving EV space. The truck segment, though smaller, is being developed as a standalone business potentially anchored by SML Isuzu.

Read More: Mahindra & Mahindra Sees 60% Growth in SUV Sales!

Learning from Industry Peers and Market Opportunities

The talks come months after Tata Motors successfully separated its PV and CV divisions into listed entities. This approach is seen to create sharper focus and operational agility. Mahindra’s restructuring could open doors to independent leadership, targeted capital allocation and long-term investor visibility without compromising the current scale.

Conclusion

The proposed split of Mahindra’s tractor, passenger vehicle and truck segments reflects growing ambition to structure operations for future preparedness. With division-specific growth dynamics and performance results, this move could define the next chapter of Mahindra Group’s evolution.

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