The board of SML Mahindra has approved the acquisition of Mahindra & Mahindra’s truck and bus division. This move will bring the entire functioning of the group’s commercial vehicle operations under a single company. As per the filing, the sale is expected to close during FY27.
With this acquisition in place, SML Mahindra will have a product line spanning light, intermediate and heavy trucks as well as buses in the above 3.5 tonne commercial vehicle segment.
How Mahindra’s SML stake acquisition led to this deal
The transaction follows Mahindra & Mahindra’s purchase of a 58.97% stake in SML Mahindra, then known as SML Isuzu, from Sumitomo Corporation and Isuzu Motors on August 1, 2025. That deal triggered a mandatory open offer to public shareholders. Bringing MTBD under SML now consolidates the group’s truck and bus interests that had, until this point, sat across separate entities, the company said.
Under the terms of the transaction, SML will take over the Mahindra Truck & Bus business as a going concern. Manufacturing of Mahindra-branded trucks and buses, however, will continue to be carried out by M&M itself, under a contract manufacturing arrangement meant to keep production and supply uninterrupted through the transition, the company added.
Mahindra explains rationale behind SML truck and bus acquisition
“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,” Anish Shah, Group CEO & MD, Mahindra Group, said.
In its statement, the company said the combined entity is expected to gain from broader market coverage, a stronger product portfolio and improved operational efficiency, positioning it to compete in what it described as an increasingly consolidated commercial vehicle market.
“This partnership is about unlocking the best of both organisations. By combining strengths of SML and Mahindra Truck & Bus, we can drive 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 and create greater value for all stakeholders,” Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said.
About Mahindra Group and SML Mahindra
Mahindra Group, founded in 1945, employs roughly 324,000 people across more than 100 countries and holds leadership positions in farm equipment and utility vehicles in India; it is also the world’s largest tractor manufacturer by volume.
SML Mahindra, established in 1983 and listed on Indian exchanges, has a longstanding presence in the truck and bus segment and a market-leading position in intermediate and light commercial vehicle buses, as per the company.
SML Mahindra share price
SML Mahindra’s share price has jumped 20% intraday on July 29, 2026. The company’s share price has been up 13.79% in the past month, and it has gained 32.4% in the past year.