Mahindra secures a majority ownership of 59% in SML Isuzu through acquisition
Mahindra Group, a leading Indian multinational conglomerate, has taken a significant step towards expanding its commercial vehicle portfolio by acquiring a 58.96% controlling stake in SML Isuzu Ltd. The appointment of Dr. Venkat Srinivas as the Executive Director & Chief Executive Officer, effective August 01, 2025, marks the beginning of this strategic move.
The acquisition, valued at ₹555 crore, is aimed at strengthening and expanding Mahindra's position in the intermediate and heavy commercial vehicle (CV) segment, particularly in vehicles above 3.5 tonnes. This strategic move will provide Mahindra with access to proven Japanese diesel and alternative-fuel drivetrain technologies, a strong supply chain, and a well-established bus platform holding a 16% market share.
Vinod Sahay, who has been appointed as the Executive Chairman of SML Isuzu, effective August 3, 2025, will play a crucial role in this transition. The acquisition aims to double the brand's market share in the 3.5 tonne and above segment, currently held by Mahindra at a modest 3%.
In addition to this, Mahindra has a 54.2% market share in the sub-3.5 tonne light commercial vehicle (LCV) segment. The goal is to further increase this market share to 10-12% by FY2031 and 20% by FY2036. This ambitious plan aligns with Mahindra's vision to become a full-range commercial vehicle player and lead in the clean-energy and electric commercial vehicle market segments in India by 2031 and 2036.
Mahindra's strategic goal in acquiring SML Isuzu is also to intensify competition with incumbents like Tata Motors and Ashok Leyland. The acquisition will help Mahindra establish a strong presence in the 3.5 tonne and above segment, a market segment that is crucial for the growth of any commercial vehicle manufacturer.
The acquisition process is in accordance with the SEBI Takeover Regulations, and Mahindra is planning a mandatory open offer for acquisition of up to 26% stake from eligible public shareholders of SML Isuzu.
As part of its ongoing efforts in the development of electric vehicles, Mahindra is also involved in the development of electric buses and medium-duty trucks, aligning with Bharat Stage VII emission standards and India's decarbonization policies. Upcoming Mahindra cars include the XUV500 2025, e20 NXT, Thar E, XUV700, Thar, and Scorpio Classic.
With these strategic moves, Mahindra is poised to make a significant impact in the Indian commercial vehicle market, offering a wide range of vehicles from light commercial vehicles to heavy-duty trucks, and leading the way in clean-energy and electric commercial vehicles.
- The acquisition of SML Isuzu by Mahindra Group is expected to bolster Mahindra's presence in the finance and transportation sectors, particularly in the automotive industry, as the deal provides access to innovative Japanese diesel and alternative-fuel drivetrain technologies.
- In its bid to intensify competition in the Indian commercial vehicle market, Mahindra's acquisition of SML Isuzu will not only strengthen its position in the heavy and intermediate commercial vehicle segment but also help Mahindra's automotive division to double its market share in the 3.5 tonne and above segment.
