Mahindra & Mahindra Acquires Majority Stake in SML Isuzu

Mahindra & Mahindra Ltd. (M&M) has taken a major step to strengthen its position in India’s commercial vehicle (CV) segment by acquiring a 58.96% stake in SML Isuzu Ltd. (SML). The stake was purchased from Japan’s Sumitomo Corporation and Isuzu Motors Limited in a deal worth ₹555 crore, priced at ₹650 per share.

As per SEBI’s takeover regulations, M&M will now make a mandatory open offer to acquire up to 26% additional stake from SML’s public shareholders.

Overview of SML Isuzu

Founded in 1983, SML Isuzu has a strong presence in intermediate and light commercial vehicles, especially in the bus segment where it holds a 16% share in the ILCV bus category. It also boasts a wide distribution network and trusted vehicle brands.

Why Did M&M Acquire SML Isuzu?

The acquisition reflects M&M’s strategy to grow beyond the light commercial vehicle (LCV) space, where it already holds a strong 54.2% market share. Currently, M&M only has a 3% share in the CV segment above 3.5 tonnes. Through this acquisition, the company aims to double its market share to 6% in the near term and reach 10–12% by FY31, with ambitions of crossing 20% by FY36.

SML Isuzu To Become SML Mahindra

In another significant move, SML Isuzu’s board has approved a proposal to rename the company as SML Mahindra Limited, subject to regulatory and shareholder approvals. The rebranding reflects Mahindra's deeper integration and renewed focus on the commercial vehicle space.

Who Will Head SML Mahindra?

Alongside the acquisition, major leadership changes have been announced. Vinod Sahay, currently President of Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, has been appointed Executive Chairman of SML Isuzu, effective August 3, 2025. In addition, Dr. Venkat Srinivas will take over as the new Executive Director & CEO starting August 1, 2025.

Conclusion

Mahindra & Mahindra’s acquisition of SML Isuzu marks a key step in expanding its commercial vehicle footprint in India. With new leadership, ambitious goals, and a plan to increase market share, this deal sets the stage for exciting developments in the CV industry.

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