SML Mahindra to acquire Mahindra Truck and Bus division in commercial vehicle consolidation

SML Mahindra said its board has approved the acquisition of Mahindra Truck and Bus Division from Mahindra & Mahindra on a slump sale basis, in a move aimed at consolidating the group’s truck and bus businesses under one focused company. The transaction is expected to be completed during FY27, the company said in a statement on Wednesday.

The acquisition will bring Mahindra Group’s commercial vehicle operations across light, intermediate and heavy trucks, as well as buses, under SML Mahindra. The combined business will focus on the above-3.5 tonne commercial vehicle segment.

The move follows Mahindra & Mahindra’s acquisition of a 58.97% stake in SML Mahindra, formerly SML Isuzu, from Sumitomo Corporation and Isuzu Motors on August 1, 2025. M&M later made a mandatory open offer. The transfer of Mahindra Truck and Bus Division to SML is being positioned as the next step in simplifying the group’s operating structure.


The company said the transaction is expected to create a broader product portfolio, improve scale, sharpen market focus and drive synergies across operations, technology and customer-facing areas.

One platform for truck and bus business

Mahindra Group said the deal will create a single platform for its truck and bus operations.

“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,” said Anish Shah, Group CEO and MD, Mahindra Group.

Shah said the move is an important step towards the group’s aspiration of building a leading position in the truck and bus segment and creating long-term value for stakeholders.

The acquisition gives SML Mahindra a wider presence across commercial vehicle categories. SML has historically had strength in light and intermediate commercial vehicles and buses, while Mahindra Truck and Bus brings additional presence in the heavy commercial vehicle space.

The combined platform is expected to help the group compete better against larger commercial vehicle players with a fuller portfolio and a more focused structure.

Mahindra sees operating synergies

Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said the transaction was aimed at unlocking the strengths 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,” Jejurikar said.

He said the two brands would be better placed to expand customer reach, improve offerings and create greater value.