SML Mahindra to acquire Mahindra's truck and bus business in FY27
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SML Mahindra Ltd has approved the acquisition of Mahindra & Mahindra's (M&M) Truck and Bus Division (MTBD), marking a major restructuring of the Mahindra Group's commercial vehicle business as it seeks to create a unified truck and bus platform. The transaction is expected to be completed during FY2027.
As per the official announcement from the company on Wednesday, the acquisition, which will be carried out through a slump sale, will bring Mahindra's truck and bus operations under SML Mahindra, creating a single entity with a presence across light, intermediate and heavy commercial vehicles, as well as buses in the above 3.5-tonne segment.
The company said the move is aimed at simplifying the group's operating structure, improving scale, unlocking synergies and strengthening competitiveness.
The restructuring follows M&M's acquisition of a 58.97% stake in the then SML Isuzu from Sumitomo Corporation and Isuzu Motors in August 2025, followed by an open offer. The proposed transfer of MTBD is being positioned as the next step in integrating the group's commercial vehicle operations under one umbrella.
Mahindra Group said the combined business would offer a broader product portfolio, wider market reach and greater operational efficiencies.
Commenting on the development, Mahindra Group CEO and Managing Director Anish Shah, “The transaction simplifies Mahindra Group's commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra, creating a single focused 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.”
The company expects the integration to strengthen its ability to serve customers across multiple applications while improving its position in India's increasingly competitive commercial vehicle market.
As part of the arrangement, manufacturing of Mahindra-branded trucks and buses will continue to be undertaken by M&M through a contract manufacturing agreement, ensuring continuity of production and supply during the transition.
Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector at M&M, said the combination would enable operational, technological and customer-facing synergies while preserving the identity of both brands.
SML Executive Chairman Vinod Sahay described the acquisition as a transformative step that would enhance market coverage, operational effectiveness and long-term value creation.