Mahindra takes over 59% controlling ownership of SML Isuzu in new acquisition
Mahindra & Mahindra Boosts Market Share with Acquisition of SML Isuzu
Mahindra & Mahindra, one of India's leading automotive companies, has made a strategic move by acquiring a significant stake in SML Isuzu. The acquisition, finalized in April 2025, has strengthened Mahindra's position in the commercial vehicle (CV) sector above 3.5 tonnes, where it previously held a 3% market share.
The acquisition immediately doubles Mahindra's market share in the >3.5T segment to 6%, with ambitious plans to grow to 10-12% by fiscal year 2031 and over 20% by FY36. Mahindra acquired 43.96% from Sumitomo Corporation and 15% from Isuzu Motors at ₹650 per share, totaling ₹555 crore.
SML Isuzu, now part of the Mahindra Group, commands a 16% market share in the Intermediate and Light Commercial Vehicle (ILCV) bus segment and has a pan-India presence. The acquisition fills a gap in Mahindra’s portfolio by adding strength in the >3.5 tonne truck and bus segment, complementing its dominant 52-54% share in the sub-3.5 tonne light commercial vehicle market.
To lead SML Mahindra, Vinod Sahay has been appointed as Executive Chairman, and Dr. Venkat Srinivas as CEO, both bringing experience from Mahindra’s truck, bus, and construction equipment divisions. The appointments were made by the board of directors and are effective in August 2025.
With this acquisition, Mahindra aims to expand its presence significantly in the heavier commercial vehicle sector. This move is expected to make Mahindra a more formidable competitor in the Indian commercial vehicle industry, particularly in trucks and buses ≥3.5 tonnes, which is a critical segment for infrastructure, logistics, and public transport.
By integrating SML Isuzu’s strong brand and resources, Mahindra grows from a niche player in heavy CVs to a leading contender, potentially reshaping competitive dynamics against other large manufacturers like Tata Motors and Ashok Leyland. The acquisition also aligns with the Indian government's push for larger, more efficient commercial vehicles, possibly aiding Mahindra’s innovation and product development efforts in this emerging sector.
Looking ahead, Mahindra has some exciting plans. Upcoming cars from Mahindra include the Mahindra XUV500 2025, Mahindra e20 NXT, Mahindra Thar E, Mahindra XUV700, Mahindra Thar, and Mahindra Scorpio Classic. The company is also investing in electric vehicles and cutting-edge technology to transform the automotive landscape.
In summary, Mahindra’s acquisition of SML Isuzu significantly boosts its market share in the heavy commercial vehicle segment, supports growth ambitions to capture up to 20% market share by FY36, and positions the company as a key player shaping the future of India’s automotive commercial vehicle landscape.
[1] Mahindra Acquires 58.96% Stake in SML Isuzu [2] Mahindra & Mahindra Acquires Majority Stake in SML Isuzu [3] Mahindra & Mahindra Acquires SML Isuzu [4] Mahindra & Mahindra to Launch Mandatory Open Offer for SML Isuzu [5] Mahindra Acquires SML Isuzu: What It Means for the Company and the Market
- Mahindra & Mahindra's strategic acquisition of SML Isuzu aims to improve their market position in both the commercial vehicle sector and the automotive industry, with plans to increase their share up to 20% by FY36.
- The integration of SML Isuzu's resources into Mahindra & Mahindra's portfolio will strengthen their presence in the heavy commercial vehicle segment, notably trucks and buses ≥3.5 tonnes, and potentially reshape competitive dynamics in the Indian market, particularly against Tata Motors and Ashok Leyland in this sector.
