Mumbai: Mahindra & Mahindra Ltd (M&M) on Wednesday approved the transfer of its Truck and Bus Division (MTBD) to its listed subsidiary SML Mahindra Ltd for ₹525 crore on a slump sale basis, marking a major restructuring of the group’s commercial vehicle business aimed at creating a unified truck and bus entity.
The transaction, approved by the boards of both companies, is expected to be completed during FY2027, subject to regulatory approvals, execution of a Business Transfer Agreement (BTA) and fulfilment of customary conditions. The agreement is proposed to be signed on or before August 7, 2026, while the transaction is targeted to be completed by January 31, 2027, or a later mutually agreed date.
M&M said the sale will include the truck and bus business as a going concern along with its employees, assets, intellectual property, licences, permits, insurance policies, contracts, rights and liabilities. The consideration of ₹525 crore, subject to working capital adjustments, has been determined based on a valuation report prepared by GT Valuation Advisors Pvt Ltd.
The Truck and Bus Division generated a total income of ₹2,989 crore during FY2025-26, accounting for about 2.02 per cent of M&M’s total income from operations. The company’s investment in the business stood at around ₹481 crore as of March 31, 2026, representing nearly 0.65 per cent of its total net worth.
The transfer follows Mahindra’s acquisition of a 58.97 per cent stake in SML Mahindra, formerly SML Isuzu Ltd, from Sumitomo Corporation and Isuzu Motors Ltd in August 2025, followed by a mandatory open offer.
The acquisition is expected to consolidate Mahindra Group’s truck and bus operations under a single listed entity with a comprehensive presence across light, intermediate and heavy commercial vehicles, as well as buses in the over 3.5-tonne commercial vehicle segment.
“The transaction simplifies Mahindra Group’s commercial vehicle business structure by consolidating truck and bus operations under SML Mahindra, creating a single focused entity dedicated to growth and leadership in the commercial vehicle sector,” Mahindra Group CEO and Managing Director Anish Shah said.
Mahindra & Mahindra Executive Director and CEO, Auto and Farm Sector, Rajesh Jejurikar said combining the strengths of SML and Mahindra Truck & Bus would unlock synergies across operations, technology and customer-facing functions while preserving the heritage and market positioning of both brands.
SML Mahindra Executive Chairman Vinod Sahay described the acquisition as a transformative step that would create a stronger commercial vehicle platform with greater scale, broader market coverage and an expanded product portfolio.
The companies said the combined business is expected to benefit from enhanced operational efficiencies, wider customer reach and improved competitiveness in an increasingly consolidated commercial vehicle market.
Following the transfer, Mahindra-branded trucks and buses will continue to be manufactured by M&M under a contract manufacturing arrangement, ensuring continuity of production and supply while SML Mahindra takes over the business operations.
