Mahindra & Mahindra Ltd has announced its decision to acquire a 58.96% stake in SML Isuzu Ltd for an outlay of INR 555 crore, signalling a strong push to expand its presence in the trucks and buses segment. The agreement, revealed on 26th April 2025, values each SML Isuzu share at INR 650.
Mahindra’s current presence in the commercial vehicle market over 3.5 tonnes is modest, holding only 3% market share compared to its dominant 52% share in the light commercial vehicle segment under 3.5 tonnes. With this acquisition, Mahindra expects to double its share in the larger segment to 6% immediately, with ambitious targets to grow to 10–12% by FY31 and to over 20% by FY36. SML Isuzu, a listed company incorporated in 1983, is well recognised in the Indian trucks and buses market, particularly in the intermediate light commercial vehicle (ILCV) bus category where it commands around 16% market share.
SML Isuzu reported an operating revenue of INR 2,196 crore and an EBITDA of INR 179 crore for FY24. The company is noted for its frugal manufacturing processes, engineering strengths, and pan-India market presence, which Mahindra sees as a strategic fit to complement its own capabilities. The deal involves the acquisition of a 43.96% stake from Sumitomo Corporation and a 15% stake from Isuzu Motors Ltd. Mahindra believes the synergies in cost management, branding, distribution networks, and manufacturing will help unlock significant value.
Dr Anish Shah, Group CEO and MD of Mahindra Group, described the acquisition as a milestone aligned with the group’s strategy to invest in high-potential businesses that have operational excellence. Rajesh Jejurikar, Executive Director and CEO of Mahindra’s Auto and Farm Sector, highlighted that the deal would enable Mahindra to emerge as a full-range commercial vehicle player through platform consolidation and improved plant utilisation.
The transaction, which is still subject to the approval of the Competition Commission of India, is expected to close within 2025. Kotak Investment Banking is acting as the financial advisor and manager to the open offer, while Khaitan & Co is serving as Mahindra’s legal advisor.
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