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.
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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.”
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