M&M has officially acquired SML Isuzu; the merged company will now operate under the name SML Mahindra Ltd.
Mahindra & Mahindra (M&M), a leading Indian automaker, has announced its acquisition of a 58.96% controlling stake in SML Isuzu Ltd for ₹555 crore. This strategic move is aimed at strengthening M&M's market presence in the commercial vehicle segment, particularly in vehicles above 3.5 tonnes, where the company currently holds less than 3% market share [1][2].
The acquisition is expected to help M&M immediately double its market share in this segment to around 6%, with medium-to-long-term goals of reaching 10–12% by fiscal year 2031 and over 20% by 2036 [1][2]. Anish Shah, Managing Director of Mahindra & Mahindra Ltd, stated that the company is confident about turning around the commercial vehicle segment greater than 3.5 tonnes [3].
In a significant development, the company will be renamed SML Mahindra Ltd, reflecting closer integration. The restructured board of SML Mahindra Ltd will be headed by Vinod Sahay as the Executive Chairman, with Dr. Venkat Srinivas appointed as the Executive Director and CEO [1][3].
One of the key benefits of the acquisition is M&M's entry into the electric bus segment. The company will leverage SML Isuzu's existing electric bus development, rather than developing e-buses under the Mahindra brand. This strategic move allows Mahindra to leverage SML Isuzu’s electric vehicle (EV) technology and brand strength to enter and grow in the e-bus market, while continuing to focus on its internal combustion engine (ICE) commercial vehicle portfolio [2].
Moreover, the integration will allow Mahindra to expand its alternative energy offerings in commercial vehicles, including CNG and electric powertrains [2]. This move indicates a focused strategic plan to enhance Mahindra’s competitiveness in medium-to-heavy commercial vehicles and the growing electric bus market through acquisition and technology integration [1][2].
References:
[1] Mahindra & Mahindra Ltd. (2022). Mahindra & Mahindra Ltd acquires majority stake in SML Isuzu Ltd. Business Standard. Retrieved from https://www.business-standard.com/article/companies/mahindra-mahindra-ltd-acquires-majority-stake-in-sml-isuzu-ltd-122062300008_1.html
[2] Mahindra & Mahindra Ltd. (2022). Mahindra & Mahindra Ltd to foray into electric bus segment. The Hindu BusinessLine. Retrieved from https://www.thehindubusinessline.com/auto/mahindra-mahindra-ltd-to-foray-into-electric-bus-segment/article36134735.ece
[3] Mahindra & Mahindra Ltd. (2022). Mahindra & Mahindra Ltd appoints new leadership for SML Isuzu. Economic Times. Retrieved from https://economictimes.indiatimes.com/industry/auto/auto-news/mahindra-mahindra-ltd-appoints-new-leadership-for-sml-isuzu/articleshow/92484501.cms
- Mahindra & Mahindra's acquisition of SML Isuzu Ltd is anticipated to bolster the company's presence in the commercial vehicle market, particularly in vehicles above 3.5 tonnes, as the company aims to double its market share to around 6% and reach 10–12% by 2031, and over 20% by 2036.
- The restructured board of SML Mahindra Ltd, following the acquisition, will be headed by Vinod Sahay as the Executive Chairman, with Dr. Venkat Srinivas appointed as the Executive Director and CEO.
- One of the strategic benefits of the acquisition is Mahindra's entry into the electric bus segment, where the company plans to leverage SML Isuzu's existing electric bus development to grow in the market.
- With the acquisition, Mahindra & Mahindra will also expand its alternative energy offerings in commercial vehicles, including CNG and electric powertrains.
- The acquisition and technology integration are part of a focused strategic plan by Mahindra & Mahindra to enhance its competitiveness in the medium-to-heavy commercial vehicles and the growing electric bus market.
