Mahindra & Mahindra Acquires Majority Stake in SML Isuzu, Rebrands as SML Mahindra

In a major move to bolster its position in the commercial vehicle (CV) market, Mahindra & Mahindra Ltd (M&M) has acquired a 58.96% controlling stake in SML Isuzu Ltd (SML) from Japan-based Sumitomo Corporation and Isuzu Motors.

The deal, formalised through share purchase agreements signed on April 26, 2025, marks a significant step in M&M’s strategy to establish a stronger presence in the intermediate and light commercial vehicles (ILCV) segment. The acquisition was made at Rs 650 per share, bringing the total investment to approximately Rs 555 crore.

In line with regulatory requirements under SEBI’s takeover code, M&M will now launch an open offer to buy an additional 26% stake from public shareholders.

Post-acquisition, the board of SML has undergone a reshuffle. Vinod Sahay, President of Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, has been appointed Executive Chairman of the company, effective August 3. Dr. Venkat Srinivas has taken charge as Executive Director and CEO from August 1.

The board has also cleared a proposal to rename the company as SML Mahindra Limited, pending necessary approvals from regulatory authorities and shareholders.

Also Read: M&M Share Price: Anand Mahindra-Led Company Stock Climbs As CCI Clears Major Stake Buy In SML Isuzu - Details | Republic World

M&M’s foray into the ILCV space comes at a time when it commands a modest 3% share in the >3.5-tonne segment, compared to its commanding 54.2% stake in the sub-3.5 tonne LCV market. With the integration of SML’s operations, the company aims to immediately double its share in the heavier CV segment to 6%, with plans to scale that up to 10–12% by FY31 and beyond 20% by FY36.

SML Isuzu, incorporated in 1983, has long been a recognised player in India’s CV space. The company holds a strategic foothold in the ILCV bus category, where it enjoys around 16% market share and a loyal customer base across the country.

Dr. Srinivas, who will continue to oversee Mahindra’s Truck & Bus and Construction Equipment divisions alongside his new role, has more than three decades of experience in engineering and R&D. Over the past 11 years with Mahindra, he has played a central role in product development, contributing to models such as the Blazo, Furio, Cruzio, and Zeo EV, among others.