The acquisition strengthens Mahindra’s position in the >3.5T CV segment; the company aims for a 20% market share by FY36.
02 Aug 2025 | 8724 Views | By Autocar Professional Bureau
Mahindra & Mahindra Ltd (M&M) said on Friday that it has completed the acquisition of a 58.96% controlling stake in SML Isuzu Ltd, marking its formal entry into the intermediate and light commercial vehicle (ILCV) space with significant market presence.
Initially announced in April, the deal saw M&M acquire ...
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Mahindra & Mahindra Ltd (M&M) said on Friday that it has completed the acquisition of a 58.96% controlling stake in SML Isuzu Ltd, marking its formal entry into the intermediate and light commercial vehicle (ILCV) space with significant market presence.
Initially announced in April, the deal saw M&M acquire the stake from Japan’s Sumitomo Corporation and Isuzu Motors Ltd for ₹555 crore at ₹650 per share. The company said it would launch a mandatory open offer to buy up to 26% from public shareholders, in line with Indian securities regulations.
Following the acquisition, the board of SML Isuzu has been reconstituted. Vinod Sahay, President of Aerospace & Defence, Trucks, Buses & Construction Equipment at Mahindra Group, has been appointed Executive Chairman, effective August 3. Dr. Venkat Srinivas, Business Head of Mahindra Truck & Bus and Construction Equipment, has been Executive Director and CEO since August 1.
The company will be renamed SML Mahindra Limited, subject to regulatory and shareholder approvals.
Mahindra said the acquisition is a key step to strengthen its position in the >3.5-tonne commercial vehicle segment, where it currently holds just a 3% market share, compared with a dominant 54.2% in the sub-3.5 tonne LCV space. With the integration of SML’s portfolio and network, M&M aims to immediately double its overall CV market share to 6%, and expand it to 10–12% by FY31 and over 20% by FY36.
Founded in 1983, SML Isuzu is a listed player with a strong footprint in the ILCV bus segment, holding a market share of about 16%.
Sahay and Srinivas bring decades of experience in the automotive and aerospace sectors and have led key product and platform developments within the Mahindra Group, including the Blazo, Furio, and Cruzio platforms.
Sahay, a member of the Mahindra Group Executive Board, will continue to head the Group’s Aerospace, Defence, Trucks, Buses and Construction Equipment verticals. He has previously served as CEO of Mahindra Truck & Bus, Mahindra Two Wheelers, and Construction Equipment businesses. Prior to joining Mahindra, he held several leadership roles at Tata Motors in the commercial vehicle division.
Venkat Srinivas, who has been with the Mahindra Group for over 11 years, brings 35 years of R&D and leadership experience across aerospace and automotive engineering domains. He has led strategic programmes such as the Blazo, Bolero Maxx Pikup, and Global Pik Up. Before Mahindra, he worked at Ashok Leyland and Ford Motor Company in Detroit.
The company said the move would help drive product synergies, platform rationalisation, and access to SML’s pan-India dealer and service network, enabling stronger penetration in the ILCV bus and truck segments.
M&M, part of the $19.4 billion Mahindra Group, is India’s largest tractor maker by volume and a top player in the utility vehicles and pickup truck markets.
The board of SML has also approved changing the company's name to ‘SML Mahindra Limited’, subject to approvals from the Registrar of Companies, Ministry of Corporate Affairs, and shareholders.
According to the company, the strategic focus will be on growing the ILCV segment, where SML is already a known brand, while leveraging Mahindra’s engineering scale and electrification roadmap to enhance future readiness.