Mahindra to integrate truck, bus manufacturing under SML Mahindra

The Board of Directors of SML Mahindra Limited (SML) on Wednesday (July 29, 2026) approved the acquisition of Mahindra Truck and Bus Division (MTBD) from Mahindra & Mahindra Limited (M&M) as a going concern through a slump sale for ₹525 crore, subject to working capital adjustments. 

Following the announcement of the deal SML Mahindra’s shares gained 20% to ₹4.565.50 on the BSE. MSL Mahindra is a subsidiary of M&M. The transaction is expected to be completed during this financial year.

“The acquisition marks a significant milestone in SML’s growth journey and represents a strategic step for Mahindra Group towards creating a unified Truck & Bus business with a comprehensive presence across light, intermediate and heavy commercial vehicles, as well as buses in the 3.5T CV segment,” Mahindra Group said in a statement. 

“Following M&M’s acquisition of a 58.97% stake in SML Mahindra Limited (formerly SML Isuzu Limited) from Sumitomo Corporation and Isuzu Motors Limited on August 1, 2025, and the subsequent mandatory open offer, the proposed transfer of MTBD to SML is a natural next step in creating a simplified operating model with sharper market focus, enhanced scale and improved competitiveness,” it added.

Anish Shah, Group CEO & MD, Mahindra Group, said, “The transaction simplifies Mahindra Group’s commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra, creating a single focussed entity dedicated to growth and leadership in the commercial vehicle sector.”

“This is an important step towards our aspiration of building a leading position in the Truck & Bus segment and creating long-term value for all stakeholders,” he added. 

Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Limited, said, “By combining strengths of SML and Mahindra Truck & Bus, we can drive meaningful synergies across operations, technology and customer-facing domains while preserving the unique heritage and market positioning of both brands.

Together, the two brands will be better placed to expand customer reach, enhance offerings and create greater value for all stakeholders.”

Vinod Sahay, Executive Chairman, SML, said, “This acquisition is a transformative step in the evolution of SML Mahindra. By bringing together SML and Mahindra Truck & Business under one unified commercial vehicle platform, we are creating a stronger business with greater scale, broader market coverage and a more comprehensive product portfolio.”

“We believe this transaction will enhance our competitiveness, improve operational effectiveness and create sustainable long-term value for our customers, employees, partners and shareholders,” he added.

“Manufacturing of Mahindra branded trucks and buses will continue to be undertaken by M&M under a contract manufacturing arrangement, ensuring continuity of supply and operational stability,” the Group said.