Mahindra & Mahindra Expands Its Commercial Vehicle Empire, Acquires 58.96% Stake in SML Isuzu for ₹555 Cr

Mahindra & Mahindra (M&M) acquired a 58.96% controlling stake in SML Isuzu to strengthen its hold in the commercial vehicles segment. The acquisition deal worth ₹ 555 crore is yet to receive regulatory approvals. The company in a statement on April 1 stated that once the deal gets all requisite regulatory approvals, SML Isuzu will be renamed as SML Mahindra Limited. 

“It is a big step for M&M towards establishing a strong presence in the >3.5T commercial vehicles (CV) segment, where the company has a 3% market share presently, as compared to a 54.2% market share in the Sub-3.5 tonne LCV segment,” said the company in a statement on April 1.

The deal has already been approved by the Competition Commission of India. Before renaming the company, M&M needs to get approval from the Registrar of Companies, Central Registration Centre, Ministry of Corporate Affairs, and shareholders. 

M&M had first signed an agreement to acquire a controlling stake in the commercial vehicle maker in April this year. The ₹ 555 crore deal is said to increase M&M’s market share to 6%, from the present 3%. The development will contribute significantly to M&M’s goal of increasing market share to 10%-12% by the financial year 2031 and 20% by FY36. 

SML, founded in 1983, is a listed company and has a strong presence across India. It commands a 16% market share in the intermediate and light commercial vehicle (ILCV) bus segment. 

This development comes around a time when another giant in the commercial vehicle segment is betting big on the market. Tata Motors has planned to acquire Italian truck maker Iveco to strengthen its presence in the international commercial vehicle segment. The deal, which is set to close by April 2026, is subject to regulatory approval across Europe and other jurisdictions.