Mahindra & Mahindra (M&M) has approved the transfer of its truck and bus business to subsidiary SML Mahindra for ₹525 crore. The transaction will combine M&M’s truck and bus division with SML Mahindra’s existing operations, creating an integrated commercial vehicle platform spanning light, intermediate and heavy trucks, along with buses in the over-3.5-tonne category.
“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,” Group CEO and Managing Director Anish Shah said.
Deal Structure
The consideration of ₹525 crore is subject to working capital adjustments. M&M said the business transfer agreement is expected to be signed on or before August 7, while the transaction is targeted for completion by January 31, 2027, subject to regulatory approvals and fulfillment of customary conditions.
The truck and bus division reported revenue of ₹2,989 crore in FY26, contributing 2.02% of M&M’s income from operations. The business was carried at a book value of about ₹481 crore as of March 31, 2026.
In a parallel development, SML Mahindra’s board approved the acquisition of the truck and bus business on a slump sale basis. The move follows M&M’s acquisition of a 58.97% controlling stake in the erstwhile SML Isuzu from Sumitomo Corporation and Isuzu Motors in August 2025, a transaction that paved the way for integrating the group’s commercial vehicle operations.
Dedicated Commercial Vehicle Powerhouse
Following the acquisition, SML Mahindra will become the Mahindra Group’s dedicated commercial vehicle company, bringing together products, technology, manufacturing and distribution under one umbrella. The company expects the integrated structure to improve operational scale and strengthen its presence across truck and bus segments.
The truck and bus business will be transferred as a going concern, ensuring continuity for dealers, customers, suppliers and employees. Existing product lines and supply chains will continue without disruption. To maintain production continuity, Mahindra & Mahindra will continue contract manufacturing Mahindra-branded trucks and buses even after the transfer, ensuring uninterrupted supplies as the unified commercial vehicle business scales up.
