There were media reports that the Mahindra Group may spin off tractors, PVs & trucks into separate entities.
09 Oct 2025 | 2128 Views | By Kiran Murali
Amid reports that the Mahindra group may separate its tractor, passenger vehicle (including EVs), and truck operations into independent entities, the company on Thursday issued a clarification saying it has no plans to demerge auto and tractor businesses.
On Thursday, the Economic Times reported that Mahindra Group is weighing ...
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Amid reports that the Mahindra group may separate its tractor, passenger vehicle (including EVs), and truck operations into independent entities, the company on Thursday issued a clarification saying it has no plans to demerge auto and tractor businesses.
On Thursday, the Economic Times reported that Mahindra Group is weighing a major restructuring where it may spin off tractors, PVs & trucks into separate entities.
"In view of the above speculation, the Company on its own considers it necessary to clarify to the Stock Exchanges that there is no plan for a demerger of the Auto and Tractor businesses," Mahindra & Mahindra said in an exchange filing.
The report on restructuring, conceived as a strategic value-creation initiative, comes just weeks after Tata Motors completed the separation of its passenger and commercial vehicle businesses into two listed entities.
The ET report had said Mahindra's move is designed to offer greater transparency for investors, enforce stronger financial discipline, and facilitate more agile business operations.
However, Mahindra underlined that it sees much greater value from synergies by keeping these businesses within the M&M entity. Currently, Mahindra's auto and tractor businesses operate as divisions under the group's flagship - Mahindra & Mahindra.
Earlier this year, Mahindra & Mahindra announced that it is reviewing its international farm equipment business amid weak international operations, driven by macroeconomic headwinds such as high interest rates and the election in the US, and structural decline in Europe.
In September, Mahindra & Mahindra announced the sale of its Finnish combine harvester and forestry machinery arm - Sampo Rosenlew Oy - to TERA for Rs 52 crore. The company has signed a share purchase agreement with Tera Yatirim Teknoloji Holding Anonim Sirketi in this regard.