1 month ago
SML Mahindra to Acquire Mahindra Truck & Bus Business for ₹525 Crore
SML Mahindra, a company that makes trucks and buses, has decided to buy the truck and bus part of another big company called Mahindra & Mahindra.
The deal is worth about 525 crore rupees and should finish by the end of fiscal year 2027.
After the purchase, all of Mahindra’s trucks and buses will be run by SML Mahindra, making it easier to manage and grow.
Mahindra will still make its own trucks and buses for a while, so customers won’t run out of cars.
The move is part of a plan to make the company stronger and more competitive.
Because investors liked the news, SML Mahindra’s stock price jumped 20% on the day it was announced.
SML Mahindra board approved acquisition of Mahindra & Mahindra’s truck and bus division for ₹525 crore, expected to close by FY27.
The deal consolidates Mahindra Group’s commercial vehicle operations under a single entity, covering light, intermediate, heavy trucks and buses over 3.5 tonnes.
Mahindra will continue contract manufacturing of its branded trucks and buses to ensure uninterrupted supply during transition.
The transaction follows Mahindra’s 58.97% stake acquisition in SML Isuzu in August 2025, enabling a simplified operating model.
SML Mahindra shares surged 20% intraday on July 29, 2026, reflecting investor optimism.
- Who
- SML Mahindra and Mahindra & Mahindra
- What
- Acquisition of Mahindra & Mahindra’s truck and bus division
- Where
- India
- When
- Announced July 29, 2026; expected to close FY27
- Why
- To consolidate Mahindra Group’s commercial vehicle operations into a single focused entity
Key facts
- Deal Value
- ₹525 crore
- Expected Closing
- FY27
- Share Price Increase
- 20% intraday
- Stake Acquisition
- 58.97% stake in SML Isuzu
- Contract Manufacturing
- Mahindra will continue contract manufacturing of its branded trucks and buses
Quotes
Rajesh Jejurikar
Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra
“This partnership is about unlocking the best of both organisations. By combining the strengths of SML and Mahindra Truck & Bus, we can drive meaningful synergies across operations, technology and customer‑facing domains while preserving the unique heritage and market positioning of both brands. Together, the two brands will be better placed to expand customer reach, enhance offerings and create greater value for all stakeholders.”
financialexpress.com
businesstoday.in
“"The transaction simplifies Mahindra Group’s commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra, creating a single focused entity dedicated to growth and leadership in the commercial vehicle sector,"”
financialexpress.com
businesstoday.in
financialexpress.com
Sources
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