Mahindra Acquires SML Isuzu, Enters >3.5T CV Segment
Mahindra & Mahindra Ltd. (M&M) has concluded a significant acquisition, securing a controlling stake in SML Isuzu Ltd. (SML) on August 1, 2025. This move grants Mahindra direct access to the >3.5T commercial vehicle segment and the Punjab-based manufacturing plant of SML.
The acquisition, valued at ₹2,800 crore, sees Mahindra purchasing a 58.96% stake in SML. Following this, an open offer process will commence, allowing Mahindra to potentially increase its stake to 84.96%, pending approval from the Competition Commission of India (CCI).
SML Isuzu, with its 16% market share in the intermediate bus segment, brings substantial revenue and EBITDA to Mahindra. In FY24, SML reported revenue of ₹2,196 crore and EBITDA of ₹179 crore. Mahindra aims to leverage this acquisition to rapidly grow its commercial real estate vehicle market share, targeting 6% by FY31 and over 20% by FY36.
Following the acquisition, Vinod Sahay has been appointed as the Executive Chairman of SML Isuzu, while Venkat Srinivas takes on the role of Executive Director and Chief Executive Officer. The company is proposed to be renamed 'SML Mahindra Limited', subject to necessary approvals. The transaction was facilitated through share purchase agreements (SPAs) dated April 26, 2025.
Mahindra's acquisition of SML Isuzu provides a significant boost to its commercial vehicle segment. With a strong presence in the >3.5T segment and access to SML's manufacturing plant, Mahindra is poised to accelerate its growth in the commercial real estate vehicle market. The appointment of new leadership and the proposed renaming of the company signal a new era for SML Isuzu under Mahindra's ownership.
