Mahindra acquires majority stake in SML Isuzu, rebrands as SML Mahindra

Mahindra

Mahindra & Mahindra Ltd. (M&M) has acquired a 58.96% stake in SML Isuzu Ltd. (SML) from Japan’s Sumitomo Corporation and Isuzu Motors Limited, the company announced on Saturday. The deal marks a significant move by M&M to strengthen its position in India’s commercial vehicle (CV) segment.

Following the acquisition, M&M will initiate a mandatory open offer to acquire up to 26% additional stake from SML’s public shareholders, in accordance with SEBI's takeover regulations.

With this strategic investment, SML’s Board of Directors has been reconstituted. Vinod Sahay, President - Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, has been appointed Executive Chairman of SML Isuzu, effective August 3, 2025. Meanwhile, Dr. Venkat Srinivas will take over as Executive Director & Chief Executive Officer from August 1, 2025.

In a further development, the board has approved renaming the company as SML Mahindra Limited, pending necessary regulatory and shareholder approvals.

The acquisition, valued at Rs 555 crore at Rs 650 per share, is a strategic step for M&M to expand its footprint in the >3.5 tonne CV segment, where it currently holds a modest 3% market share. In contrast, it commands a 54.2% share in the sub-3.5 tonne Light Commercial Vehicle (LCV) segment. With this deal, Mahindra aims to double its CV market share to 6%, targeting 10–12% by FY31 and over 20% by FY36.

Founded in 1983, SML Isuzu is a publicly listed company with a strong presence in the intermediate and light commercial vehicles space. It holds a 16% share in the ILCV bus segment and is known for its trusted brands and pan-India distribution.