Mahindra & Mahindra (M&M) has bought a 58.96% stake in commercial vehicle company SML Isuzu for ₹555 crore. This stake was earlier held by Japan’s Sumitomo Corporation and Isuzu Motors.
With this move, the company will now be called SML Mahindra Ltd, according to a statement from M&M.
New Leadership
Vinod Sahay, a senior leader at Mahindra Group, will become the Executive Chairman of the new company starting August 3, 2025.
Dr. Venkat Srinivas has already taken charge as Executive Director and CEO from August 1, 2025.
Both will continue in their current roles at Mahindra — Sahay looks after Aerospace, Defence, Trucks, Buses, and Construction Equipment, while Srinivas is the Business Head for Mahindra Truck & Bus and Construction Equipment.
Open Offer for Public Shareholders
As per SEBI rules, this takeover means M&M must now make an open offer to buy up to 26% more shares from the public shareholders of SML.
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Why M&M Made the Deal
M&M wants to grow its business in the above 3.5-tonne commercial vehicle market, where it currently holds just 3% market share.
It already has a strong presence in light commercial vehicles (below 3.5 tonnes) with a 54.2% share.
The company aims to increase its market share in the larger segment to 6% soon, and reach 10–12% by 2031, and over 20% by 2036.
SML, founded in 1983, is a well-known listed company in India, especially strong in intermediate and light commercial buses, where it has a 16% market share.
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The Competition Commission of India approved the deal in June. The new name SML Mahindra Ltd will be made official after getting approvals from the government and shareholders.
