Mumbai: In a widely expected consolidation move, SML Mahindra will be acquiring Mahindra and Mahindra’s truck and bus business division (MTBD)for ₹525 crore, making a milestone in the group’s strategy to consolidate its presence in the commercial vehicle market.
This comes nearly a year after Mahindra and Mahindra acquired a controlling stake of around 59% in SML Isuzu in August 2025, after which the company was rebranded SML Mahindra. With this, Mahindra and Mahindra now gets its entire truck and bus operations under one roof, creating a more focused entity for the market.
The deal, approved by the SML Mahindra board, is expected to be completed during the current financial year, subject to regulatory approvals.
With this consolidation, SML Mahindra will be able to leverage Mahindra’s existing truck and bus technologies, manufacturing capabilities and dealer network while simplifying its corporate structure.
“Initially, MTBD will be a drag on the SML financials but as the synergies kick in, a lot of the synergies will come form some of the activities that have been underway at MTBD. From an M&M standpoint MTDB will come out of stand-alone results in the current form. We are also evaluating ways in which the manufacturing activity can be separate so that it doesn’t in any way put any impact on stand-alone result.”Amarjyoti Barua, chief financial officer, Mahindra Group said.
Currently, SML Mahindra has a 24,000 chassis per annum truck capacity, with another 12,000 for bus units per annum. At its Chakan facility, M&M has a capacity for 35,000-40,000 units for trucks and buses, while it is currently utilizing just half of it. Eventually, SML Mahindra will combine its capacity, making it the fourth largest commercial vehicle maker in India.
