Mahindra Acquires SML Isuzu Majority, Rebrands Firm to SML Mahindra

Mahindra and Mahindra (M&M) has bought majority stake in SML Isuzu Ltd to establish its presence in the commercial vehicle industry of India in a major step. The acquisition is strategic as the company seeks to fast-track the penetration of Mahindra in the 3.5-tonne market of commercial vehicles, which is competitive with a 3 percent market share that M&M enjoys.

Following the acquisition, Mahindra has restructured the board, appointing company veteran Vinod Sahay as Executive Chairman, effective August 3. Venkat Srinivas has assumed the role of Executive Director and CEO from August 1. Sahay continues to lead Mahindra’s Aerospace & Defence, Trucks, Buses, and Construction Equipment business, while Srinivas will retain his position as Business Head for Mahindra Truck & Bus and Construction Equipment alongside his new responsibilities.

Also Read: Mahindra Rolls Out CEV‑V Range of Construction Machines with New Tech

This transaction, first announced in April, saw M&M purchase the stake from Japan’s Sumitomo Corporation and Isuzu Motors Ltd for ₹555 crore. In line with SEBI takeover norms, M&M will launch an open offer for an additional 26 percent stake from public shareholders. The deal received clearance from the Competition Commission of India in June.

M&M stated that the acquisition and rebranding represent a decisive step toward capturing a larger share of the market. The company plans to double its market share to 6 percent in the near term, targeting 10–12 percent by FY31 and surpassing 20 percent by FY36. Founded in 1983, SML holds around 16 percent of the intermediate and light commercial bus segment with a robust nationwide presence.