Strategic Expansion: Acquisition of SML Isuzu to Turbocharge M&M’s Truck & Bus Business

In a major strategic move to strengthen its presence in the commercial vehicle (CV) space, Mahindra & Mahindra (M&M) announced in April 2025 that it would acquire a 58.96% stake in SML Isuzu Ltd. for approximately ₹555 crore (around USD 65 million). This acquisition marks a significant shift for M&M, which has long dominated the light commercial vehicle (LCV) segment but has had limited traction in the medium and heavy commercial vehicle (M&HCV) space. By gaining control of SML Isuzu—a well-established manufacturer of trucks and buses—Mahindra aims to enter the mid-size truck and intercity bus segments more aggressively, where growth is expected to accelerate due to post-pandemic infrastructure demand and fleet modernization.

The deal not only gives Mahindra access to SML’s manufacturing facilities and product lines but also positions it to capitalize on a broader customer base and international markets. SML Isuzu, known for its durable and cost-efficient commercial vehicles, brings with it a loyal customer network in India and select global markets. Mahindra is also expected to benefit from SML’s long-standing technology collaboration with Isuzu Motors of Japan, especially in diesel engine tech and chassis durability. The acquisition will be followed by an open offer for an additional 26% stake, which, if accepted, will further strengthen M&M’s control and strategic direction over SML Isuzu’s operations.

Through this expansion, Mahindra is targeting a rise in its market share in the M&HCV segment from just 3% today to 6% in the near term, with aspirations to reach 12% by FY2031. The acquisition aligns with Mahindra’s broader commercial vehicle strategy, which includes electrification. SML Isuzu’s lineup will be gradually integrated with Mahindra’s EV plans, including electric buses and emission-compliant trucks. Overall, this acquisition is a tactical step that complements Mahindra’s existing leadership in LCVs and SUVs, creating a more balanced and scalable vehicle portfolio to serve India’s fast-evolving transportation sector.

Sources:Bloomberg