Mahindra & Mahindra (M&M), a leading Indian automotive manufacturer, has entered into an agreement to acquire a 58.96% stake in SML Isuzu, a prominent player in the commercial vehicle segment, for ₹5.55 billion ($65 million). This strategic move is set to bolster Mahindra’s position in the truck and bus market, with plans to double its market share from the current 3% to 6%, and a long-term goal of reaching 12% by fiscal year 2031.
The acquisition involves purchasing a 43.96% stake from Japan’s Sumitomo Corporation and a 15% stake from Isuzu Motors. Additionally, Mahindra will initiate a mandatory open offer to acquire up to an additional 26% stake in SML Isuzu at ₹1,554.6 per share, as per regulatory requirements. Notably, the acquisition price of ₹650 per share represents a significant discount compared to SML Isuzu’s closing price of approximately ₹1,773.4 on the day prior to the announcement.
SML Isuzu’s share price has experienced a surge of about 20% in 2025, fueled by speculation surrounding a potential buyout. The acquisition is expected to provide Mahindra with a stronger foothold in the commercial vehicle sector, enabling the company to leverage SML Isuzu’s established presence and expertise.
Anish Shah, CEO of Mahindra Group, emphasized the significance of this acquisition, stating, “The acquisition of SML Isuzu marks a significant milestone in Mahindra Group’s vision of delivering 5x growth in our emerging businesses.” He further highlighted that the move aligns with Mahindra’s capital allocation strategy, focusing on investing in high-potential growth areas that demonstrate operational excellence.
This strategic acquisition underscores Mahindra’s commitment to expanding its commercial vehicle portfolio and strengthening its market position in India’s rapidly growing economy.