Mahindra secures majority control over SML Isuzu through purchasing a 59% share
Mahindra Group, a leading Indian multinational conglomerate, has announced its acquisition of a 58.96% stake in SML Isuzu, a move aimed at strengthening its presence and expanding market share in the commercial vehicle (CV) segment above 3.5 tonnes.
Currently, Mahindra holds a modest 3% market share in the >3.5 tonne segment. With this acquisition, the company aims to immediately double that share to around 6%, targeting 10–12% by FY2031 and over 20% by FY2036.
The strategic goal is to complement Mahindra’s strong position in the sub-3.5 tonne light commercial vehicle segment, where it commands over 54% market share, and position Mahindra as a more prominent player in the heavier truck and bus segments in India.
To achieve these growth targets, Mahindra will leverage SML Isuzu’s existing 16% share in the intermediate and light commercial vehicle bus segment, trusted brand recognition, and pan-India distribution network. The company has reconstituted SML Isuzu’s board, rebranded it as SML Mahindra Limited, and appointed senior leadership from its Trucks, Buses & Construction Equipment division to drive the integration and growth agenda.
Vinod Sahay has been appointed as the Executive Chairman of SML Isuzu, effective August 3, 2025. Dr. Venkat Srinivas has been appointed as the Executive Director & Chief Executive Officer of SML Isuzu Ltd., effective August 01, 2025. These appointments were made by the board of directors of SML Isuzu.
The acquisition, which was agreed upon in April 2021 at a price of ₹650 per share, totaling an investment of ₹555 crore, is a key component of Mahindra’s long-term strategic plan to build a comprehensive and competitive commercial vehicle presence across multiple tonnage categories in India.
Mahindra is also planning to gain insights into upcoming trends in the automotive industry, including Electric Vehicles, cutting-edge technology, and Upcoming Cars In India, as well as Upcoming Bikes in India.
The acquisition will help Mahindra establish a strong presence in the 3.5 tonne and above segment, positioning the company for future growth and success in the Indian commercial vehicle market.
Mahindra Group intends to leverage SML Isuzu's 16% share in the intermediate and light commercial vehicle bus segment to position itself as a more prominent player not only in the heavier truck and bus segments but also in the wider Indian automotive industry, especially in the Electric Vehicles sector, as part of its long-term strategic plan. The company aims to double its 3% market share in the >3.5 tonne segment, targeting 10–12% by FY2031 and over 20% by FY2036, which requires significant investments in finance and potential acquisitions in both the automotive and transportation sectors to build a comprehensive and competitive commercial vehicle presence across multiple tonnage categories in India.
