Tuesday, July 15, 2025

Mahindra to Acquire Majority Stake in SML Isuzu for ₹555 Crore

Mahindra & Mahindra Ltd (M&M) has announced a strategic move to bolster its presence in the commercial vehicle (CV) space by acquiring a 58.96% stake in SML Isuzu Ltd at ₹650 per share, translating to a total investment of ₹555 crore. The acquisition includes a 43.96% stake from current promoter Sumitomo Corporation and an additional 15% from Isuzu Motors Ltd, a public shareholder in SML.

In line with SEBI Takeover Regulations, M&M will also launch a mandatory open offer to acquire up to 26% stake from SML’s public shareholders.

The deal marks a significant push by M&M to scale its presence in the >3.5-tonne CV category, where it currently holds only a 3% market share—vastly overshadowed by its dominant 52% share in the <3.5-tonne light CV segment. With this acquisition, Mahindra aims to double its CV market share to 6%, targeting 10–12% by FY31 and 20%+ by FY36.

SML Isuzuk take over by Mahindra

Also Read: Mahindra Thar Convertible Discontinued In India

SML Isuzu, a well-established player in India’s CV industry since 1983, holds a 16% market share in the Intermediate & Light Commercial Vehicle (ILCV) bus segment. In FY24, the company posted an operating revenue of ₹2,196 crore with an EBITDA of ₹179 crore, backed by profitable operations and lean manufacturing capabilities. M&M sees the acquisition as an opportunity to unlock synergies across cost structures, dealer networks, branding, manufacturing, and talent. It also aims to leverage its existing strengths in technology, design, and sourcing to build a competitive edge in the CV segment.

Mr. Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra Ltd., said, “SML brings a strong legacy, a loyal customer base, and a credible product portfolio that complements Mahindra’s existing offerings in the trucks and buses segment. This acquisition is a pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and better plant utilization. Together, we are well-positioned to scale rapidly and drive profitable growth.”

Also Read: Mahindra Delivers Over 3,000 BE 6 and XEV 9e EVs Since Launch

Car News

Mahindra Announces July 2025 Discounts On Select Models

0
Mahindra has announced attractive discounts and benefits on its select offerings, valid throughout July 2025. Discounts span popular models such as XUV 3XO, XUV700,...
Kia Carens Clavis EV launch date

Kia Carens Clavis EV Launch Tomorrow: All You Need To Know

0
The Kia Carens Clavis EV is scheduled to launch tomorrow, ie, July 15, 2025. It is likely to arrive in a 7-seater configuration only...
Tata Curvv EV and Nexon EV battery warranty

Tata Curvv EV and Nexon EV 45 kWh Onwers Now Can Get Lifetime Battery Warranty

0
Tata Motors has introduced a lifetime battery warranty for the Curvv EV and Nexon EV's 45 kWh variant. This scheme was introduced with the...

Top 10 Selling Cars of June 2025 – Creta Leads The Chart

0
Car sales in India witnessed a decline in sales last month, and the top 10 vehicle sales also reflect this downturn. However, the Hyundai...

Related Articles

Maruti eVitara Range and Charging Time Revealed

While the Maruti e-Vitara's India debut is still awaited, the brand has now revealed its range figures and charging time in the United Kingdom....

Hyundai Aura S Now Available With AMT; Slashes Entry Price By Rs 87,000

Hyundai India has expanded the variant lineup of the Aura sub-4m sedan by introducing the S AMT variant at Rs 8.08 lakh (ex-showroom). Earlier,...

Kia Carens Clavis EV Launch Tomorrow: All You Need To Know

The Kia Carens Clavis EV is scheduled to launch tomorrow, ie, July 15, 2025. It is likely to arrive in a 7-seater configuration only...

Tesla India To Open Its First Showroom On July 15; Model Y Tipped To Debut

The American EV giant, Tesla, is all set to foray into the Indian market on July 15 by opening its first experience centre in...

Bajaj Pulsar N150 Discontinued In India

Bajaj Auto has discontinued the Pulsar N150 from its Indian lineup. The bike has also been removed from the official website. The Pulsar N150...