Mahindra seizes a majority control, holding 59% of SML Isuzu through acquisition.
In a strategic move to expand its footprint in the commercial vehicle (CV) sector, Mahindra Group has acquired a majority stake in SML Isuzu Ltd. The acquisition, agreed upon in April 2025 at a price of ₹650 per share, totalling an investment of ₹555 crore, is set to bolster Mahindra's presence in the 3.5 tonne and above segment.
The appointments of Vinod Sahay and Dr. Venkat Srinivas were also announced in relation to SML Isuzu. Vinod Sahay, the President of Aerospace & Defence, Trucks, Buses & CE within the Mahindra Group, has been appointed as the Executive Chairman of SML Isuzu, effective August 3, 2025. Dr. Venkat Srinivas, who currently serves as the Executive Director & Chief Executive Officer of SML Isuzu Ltd., will take on his new role on August 01, 2025.
SML Isuzu, a company within the Mahindra Group, currently holds a 16% share in the intermediate and light commercial vehicle (ILCV) bus segment. With this acquisition, Mahindra aims to immediately double its CV market share to around 6%. The company's future plans include increasing its market share to 10–12% by fiscal year 2031 and over 20% by fiscal year 2036 in the >3.5 tonne segment. The acquisition is a significant step towards strengthening Mahindra's footprint beyond its dominant 54.2% share in the sub-3.5 tonne light commercial vehicle segment.
In a related development, SML Isuzu has been rebranded as SML Mahindra. The rebranding and the appointments of Vinod Sahay and Dr. Venkat Srinivas are expected to drive growth in the 3.5 tonne and above segment.
Meanwhile, Mahindra is also making waves in the passenger vehicle market. Upcoming cars from Mahindra include the Mahindra XUV500 2025, Mahindra e20 NXT, Mahindra Thar E, and Mahindra XUV700. The company is also investing in electric vehicles, aiming to transform the automotive landscape through cutting-edge technology.
Mahindra will also launch a mandatory open offer for the acquisition of up to 26% stake from eligible public shareholders of SML Isuzu. This move is expected to further consolidate Mahindra's position in the CV market.
As the automotive industry continues to evolve, Mahindra's strategic acquisitions and innovative product offerings are positioning the company for success in the years to come.
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- The rebranding of SML Isuzu as SML Mahindra, coupled with strategic investments in the finance sector, may facilitate Mahindra's expansion into complementary industries such as transportation and automotive finance.
- With ambitions to reach a 20% market share in the >3.5 tonne segment by fiscal year 2036, Mahindra's foray into the CV market through the acquisition of SML Isuzu is anticipated to stimulate growth in the finance, transportation, and automotive sectors.
