The transaction is expected to be completed during FY2027, the company said in a statement.
Manufacturing of Mahindra branded trucks and buses will continue to be undertaken by M&M under a contract manufacturing arrangement, ensuring continuity of supply and operational stability.
The acquisition marks a significant milestone in SML’s growth journey and represents a strategic step for Mahindra Group towards creating a unified Truck & Bus business with a comprehensive presence across light, intermediate and heavy commercial vehicles, as well as buses in the >3.5T commercial vehicle segment.
On August 1, 2025, M&M acquired 58.97 per cent stake in SML Mahindra from Sumitomo Corporation and Isuzu Motors and followed it up with a mandatory open offer.
The proposed transfer of Truck and Bus Division to SML is a natural next step in creating a simplified operating model with sharper market focus, enhanced scale and improved competitiveness, the company said.
“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,” Anish Shah, Group CEO & MD, Mahindra Group, said in a statement.
“This partnership is about unlocking the best of both organisations. By combining strengths of SML and Mahindra Truck & Bus, we can drive meaningful synergies across operations, technology and customer-facing domains while preserving the unique heritage and market positioning of both brands,” Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said.
“By bringing together SML and Mahindra Truck & Business under one unified commercial vehicle platform, we are creating a stronger business with greater scale, broader market coverage and a more comprehensive product portfolio,” Vinod Sahay, Executive Chairman of SML, said.