Mahindra & Mahindra Acquires SML Isuzu: What’s Next For Commercial Vehicle?

Mahindra & Mahindra Ltd. (M&M) have acquired 58.96 per cent stake in SML Isuzu Ltd. (SML) from Sumitomo Corporation, Japan and Isuzu Motors Limited, the company said in a statement on Saturday.

As part of the transaction, M&M would also launch a mandatory open offer for acquisition of up to 26 per cent stake from eligible public shareholders of SML in accordance with the SEBI Takeover Regulations.

SML Isuzu Rebrands, Appoints New Leadership

Consequent to the above, the Board of Directors of SML has been reconstituted. The board of Directors of SML has appointed Vinod Sahay, President – Aerospace & Defence, Trucks, Buses & CE – Mahindra Group, as Executive Chairman of SML Isuzu, effective August 3, 2025.

Dr Venkat Srinivas has been appointed as the Executive Director & Chief Executive Officer of SML Isuzu Ltd, effective August 01, 2025.

The Board of Directors of SML has also approved a change in the name of the company to ‘SML Mahindra Limited’- subject to approvals from RoC, Central Registration Centre, MCA and shareholders of the Company or any other authority as may be necessary.

M&M Acquires Controlling Stake in SML Isuzu, Expands CV Market Share

In April 2025, M&M agreed to acquire a 58.96 per cent equity stake in SML at Rs 650 per share, representing a total investment of Rs 555 crore. It is a big step for M&M towards establishing a strong presence in the >3.5T CV segment, where the company has a 3 per cent market share presently, as compared to a 54.2 per cent market share in the Sub-3.5 tonne LCV segment.

M&M’s Trucks and Buses Division has made meaningful progress over the past few years. This acquisition will double the market share to 6 per cent, with a plan to increase this to 10 – 12 per cent by FY31 and 20 per cent + by FY36.

SML, established in 1983, is a listed company with well-recognised brands, strong heritage and pan-India presence in the ‘Trucks & Buses ‘segment. The company has a market-leading position in the ‘ILCV [Intermediate and Light Commercial Vehicles] Buses segment, ‘with around 16 per cent market share.

Vinod Sahay is a member of the Group Executive Board of Mahindra Group. In addition to his new role in SML Isuzu Ltd, he will continue to serve as President – Aerospace & Defence, Trucks, Buses and Construction Equipment sector of Mahindra Group.

He brings 27 years of extensive business leadership experience in Automotive, Aerospace and Defence industry with vast leadership experience in Commercial vehicle industry.

Vinod Sahay and Dr. Srinivas Appointed Key Roles

In over 10 years with the Mahindra Group, he has previously served as President & Chief Purchase Officer at Mahindra & Mahindra Ltd, CEO of Mahindra Truck & Bus and Construction Equipment business, and CEO of Mahindra Two Wheelers businesses.

Dr Venkat Srinivas, in addition to his new role, will continue to serve as the Business Head for Mahindra Truck & Bus (MTB) and Construction Equipment (CE).

He brings 35 years of extensive R&D and leadership experience in the Aerospace and Automotive Engineering domains. Over the 11 years with the Mahindra Group, he has led key initiatives in the Commercial Vehicle (CV) space, including the development of Blazo, Furio, Cruzio, Bolero Maxx Pikup, Zeo EV and strategic platforms like Veero and Global Pik Up.

(Inputs from ANI)

Also Read: Tata Motors July Twist: Sales Dip 4%, But EVs Hit All-Time High!