Mahindra & Mahindra Denies Reports of Demerger Plans, Reaffirms Synergy Between Auto and Tractor Businesses

Mahindra & Mahindra Ltd (M&M) has categorically denied media reports suggesting that the conglomerate is considering spinning off its key businesses into separate entities. In a clarification to the stock exchanges on Thursday, the company said it has no plans for a demerger of its auto and tractor divisions, dismissing speculation of a possible restructuring exercise.

The clarification came after reports surfaced that M&M may drive its key units down separate paths on October 9, claiming that the Mahindra Group was reviewing the possibility of hiving off various divisions, including tractors, passenger vehicles, and trucks, into independent companies. Similar reports appeared in other media outlets, prompting the automaker to issue a formal response.

“In view of the above speculation, the Company on its own considers it necessary to clarify to the Stock Exchanges that there is no plan for a demerger of the Auto and Tractor businesses,” M&M said in its filin, adding, “The company has clarified this in the past and maintains that it sees much greater value from synergies by keeping these businesses within the M&M entity.”

Also Read: Mahindra Rides Navratri Surge And GST 2.0 Boost With Strong Kharif Outlook, Posts 50% Tractor And 16% Auto Growth, But Trucks Face Slowdown | Republic World

Mahindra & Mahindra, a flagship company of the Mahindra Group, operates one of India’s largest tractor and passenger vehicle businesses. The firm said it continues to comply with all disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The statement effectively puts to rest ongoing market speculation about an impending “structural overhaul” within the group. M&M’s management has consistently highlighted the strategic benefits of retaining both the tractor and automotive segments under a unified corporate framework to leverage shared technology, supply chain efficiencies, and brand value.

Mahindra & Mahindra Ltd. (M&M), one of India's leading automotive and farm equipment players, reported strong sales momentum in September 2025 across its passenger vehicle and tractor businesses, even as its trucks and buses division saw muted demand.