Gearing Up for Growth: Mahindra Just Took a Big Swing in Commercial Vehicles

India’s competition watchdog has approved Mahindra & Mahindra’s plan to acquire nearly 59% of SML Isuzu for ₹555 crore. The deal involves buying 44% from Sumitomo and 15% from Isuzu Motors, which together control a majority of the company. Mahindra is also expected to make an open offer to public shareholders for an additional 26%, as required by SEBI rules.

 

Why does this matter? Mahindra already leads the small commercial vehicle segment but has a limited presence in medium and heavy trucks. SML Isuzu, on the other hand, has a solid position in light buses and trucks. By bringing SML into the fold, Mahindra gets a quicker way to scale up in a category where it’s been lagging.

 

SML posted ₹2,196 crore in revenue last year and ₹179 crore in operating profit. Mahindra’s plan is to use this foundation to grow its market share in larger vehicles to 10–12% by FY31 and beyond that over the next decade.

 

The Competition Commission didn’t find any serious concerns about the deal hurting competition. For Mahindra, this is less about gaining control and more about filling a gap in its portfolio—with a clear eye on long-term growth in commercial transport.

 

Sources: Business Standard, Mahindra Press Release, Fortune India.