The Board of Directors of SML Mahindra Limited (“SML”) has approved the acquisition of Mahindra Truck and Bus Division (“MTBD”) from Mahindra & Mahindra Limited (“M&M”) on a slump sale basis. The transaction is expectedto be completed during FY2027. 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, intermediateand heavy commercial vehicles, as well as buses in the >3.5T CV segment.
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 ofMTBD to SML is a natural next step in creating a simplified operating model with sharper market focus, enhanced scale and improved competitiveness.
Dr. 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 focused entity dedicatedto 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.”
Mr. Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd., said, “This partnership is about unlocking the best of both organisations. By combining strengths of SML and Mahindra Truck & Bus, we candrive 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 andcreate greater value for all stakeholders.”
Mr. Vinod Sahay, Executive Chairman of 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 arecreating a stronger business with greater scale, broader market coverage and a more comprehensive product portfolio. The combination leverages the complementary strengths of both organizations and is expected to unlock significant commercial and operationalsynergies. We believe this transaction will enhance our competitiveness, improve operational effectiveness and create sustainable long-term value for our customers, employees, partners and shareholders.”
Annexure B
By bringing together the complementary strengths of SML and MTBD, the combined business is expected to benefit from enhanced scale, broader market coverage, a strengthened product portfolio and improved operational efficiencies. The transactionwill create a stronger platform to serve customers across multiple applications and segments while enhancing the Company’s ability to compete in an increasingly dynamic and consolidated commercial vehicle market.
As part of the transaction, the Company will acquire the Mahindra Truck & Bus business as a going concern on a slump sale basis. Manufacturing of Mahindra branded trucks and buses will continue to be undertaken by M&M under a contractmanufacturing arrangement, ensuring continuity of supply and operational stability.
