SML Mahindra to Acquire Mahindra & Mahindra Truck and Bus Unit

The board of Mahindra & Mahindra approved the sale of its truck and bus business to its subsidiary, SML Mahindra, for Rs 525 crore on July 29, 2026. The transaction, structured as a slump sale, transfers all assets, personnel, and liabilities to SML Mahindra to consolidate the group's commercial vehicle operations under a single focused entity. This restructuring follows the August 2025 acquisition of a 58.97% controlling stake in SML Isuzu, which was subsequently renamed SML Mahindra.

Under the agreement, Mahindra & Mahindra will continue to manufacture Mahindra-branded vehicles via a contract arrangement at its Chakan plant to ensure supply continuity. The combined entity currently holds a 52% market share in the light commercial vehicle segment and approximately 6% in the heavy commercial vehicle segment. Leadership has set a target to reach a 10-12% market share and Rs 12,500 crore in revenue by fiscal 2031.

Following the announcement, SML Mahindra shares rallied, gaining 44% over two days. The deal is expected to be signed by August 7, 2026, and is projected to close by January 31, 2027, pending regulatory approvals.