Mahindra acquires majority stake in SML Isuzu

Business Business:Mahindra & Mahindra Limited (M&M) on Saturday announced that it has acquired 58.96% stake in SML Isuzu Limited (SML) from Japan’s Sumitomo Corporation and Isuzu Motors Limited. The deal is a significant step for M&M towards strengthening its position in India’s commercial vehicle (CV) sector.

Following this acquisition, M&M will launch a mandatory open offer to acquire additional stake up to 26% from the public shareholders of SML, as per SEBI’s takeover regulations.

With this strategic investment, the board of directors of SML has been reconstituted. Vinod Sahai, President, Aerospace & Defence, Trucks, Buses & Construction Equipment Division at Mahindra Group, has been appointed as the Executive Chairman of SML Isuzu with effect from August 3, 2025. Meanwhile, Dr. Venkat Srinivas will take over as Executive Director & Chief Executive Officer with effect from August 1, 2025.

In another development, the board has approved renaming the company as SML Mahindra Ltd, subject to necessary regulatory and shareholder approvals.

This acquisition worth Rs 555 crore at Rs 650 per share is a strategic move for M&M to expand its presence in the over 3.5 tonne commercial vehicle segment, where it currently has a market share of just 3%. In contrast, it has a market share of 54.2% in the under 3.5 tonne light commercial vehicle (LCV) segment. With this deal, Mahindra aims to double its commercial vehicle market share to 6%, targeting 10-12% by FY31 and over 20% by FY36.

Founded in 1983, SML Isuzu is a publicly listed company with a strong presence in the medium and light commercial vehicles space. It has a 16% share in the ILCV bus segment and is known for its trusted brands and pan-India distribution.