M&M’s board approved the sale of the business undertaking on a slump sale basis through a Business Transfer Agreement (BTA). The agreement is expected to be signed on or before August 7, 2026, while the transaction is targeted to be completed by January 31, 2027, subject to regulatory approvals and customary closing conditions.
Under the arrangement, Mahindra-branded trucks and buses will continue to be manufactured by M&M through a contract manufacturing agreement, ensuring continuity in production and supply.
A slump sale involves transferring an entire business undertaking as a going concern for a lump-sum consideration, rather than selling individual assets and liabilities separately.
The transaction will include the transfer of MTBD’s employees, assets, intellectual property, licences, permits, contracts, insurance policies, rights and liabilities. The final consideration of ₹525 crore will be subject to working capital adjustments as outlined in the agreement.
The move follows M&M’s acquisition of a controlling stake in SML Isuzu from Sumitomo Corporation and Isuzu Motors in August 2025. The company was subsequently renamed SML Mahindra.
During FY26, Mahindra’s Truck & Bus Division generated ₹2,989 crore in revenue, contributing around 2% of M&M’s consolidated operating income. The business had an investment value of approximately ₹481 crore as of March 31, 2026.
The acquisition will create a unified commercial vehicle platform spanning light, intermediate and heavy trucks, along with buses above the 3.5-tonne category.
SML Mahindra currently has an annual production capacity of 24,000 chassis and 12,000 buses, while M&M’s Chakan facility near Pune has the capacity to manufacture 35,000-40,000 trucks and buses annually, with current utilisation at about 50%.
Mahindra said the consolidation is expected to deliver benefits through greater scale, a broader product portfolio, wider market reach and improved operational efficiencies.
Group CEO and Managing Director Anish Shah said the restructuring simplifies Mahindra’s commercial vehicle business by bringing all truck and bus operations under a single focused entity, supporting the group’s ambition of becoming a leading player in the segment.
Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said combining the strengths of SML and Mahindra Truck & Bus is expected to unlock synergies across operations, technology and customer engagement, while preserving the identity of both brands.
Executive Chairman Vinod Sahay described the acquisition as a transformational step that would enhance competitiveness, improve operational efficiency and create long-term value for customers and shareholders.
First Published: Jul 29, 2026 3:45 PM IST
