The board of SML Mahindra has approved the acquisition of the Mahindra Truck and Bus Division from Mahindra & Mahindra on a slump sale basis, with completion expected during FY2027. The move consolidates the group’s commercial vehicle operations above 3.5 tonnes into a single listed entity.

The structure is the interesting part. SML Mahindra acquires the business as a going concern, but Mahindra & Mahindra will keep manufacturing Mahindra-branded trucks and buses under a contract arrangement, so the brand and customer base transfer while production stays with the parent.

No consideration was disclosed. Mahindra & Mahindra bought a 58.97% stake in the company, then known as SML Isuzu, from Sumitomo Corporation and Isuzu Motors in August 2025, making this a transfer between entities under common control.

Scale is the stated rationale and the segment explains why. India’s medium and heavy truck market is dominated by Tata Motors and Ashok Leyland, and neither SML nor the Mahindra division has held the volume to compete on cost alone.

The combined range covers light, intermediate and heavy trucks alongside buses. Whether that breadth converts into share depends on how much of the cost base actually merges, given that manufacturing remains outside the acquiring company.

Source: Mahindra