Mahindra Takes Control of SML Isuzu in Strategic Move
In a major strategic move set to reshape India's commercial vehicle (CV) landscape, Mahindra & Mahindra (M&M) has acquired a majority stake in SML Isuzu Ltd. The deal strengthens Mahindra's position in the heavy vehicle segment and signals its ambition to become a dominant player across the entire CV market.
A Landmark Acquisition and a New Identity
Mahindra has acquired a 58.96% stake in SML Isuzu from Japan’s Sumitomo Corporation and Isuzu Motors in a deal valued at Rs 555 crore. Following this, M&M will launch a mandatory open offer to acquire up to an additional 26% from public shareholders.
The acquisition brings immediate changes. The company's board has been reconstituted, and it will be renamed SML Mahindra Limited, pending approvals. This new identity reflects a clear shift in control and strategy for the established vehicle manufacturer.
The Drive for Market Leadership
This move is a calculated step for Mahindra to aggressively expand its presence in the heavier CV segment (above 3.5 tonnes), where it currently holds a modest 3% market share. This is in sharp contrast to its commanding 54.2% share in the light commercial vehicle space.
With this acquisition, Mahindra aims to leverage SML Isuzu's strong brand and pan-India distribution network to achieve ambitious growth. The company has set a target to immediately double its CV market share to 6%, with long-term goals of reaching 10–12% by 2031 and over 20% by 2036. The deal positions Mahindra to challenge the established leaders in the segment and pursue a more comprehensive growth strategy across the automotive sector.
