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Mahindra & Mahindra (M&M) has approved the transfer of its Mahindra Truck and Bus Division (MTBD) to its listed subsidiary SML Mahindra Limited for Rs 525 crore. The move aims to bring the group's truck and bus business under one company, allowing it to improve operational efficiency, expand its commercial vehicle portfolio, and strengthen its market position. The companies expect to sign the Business Transfer Agreement (BTA) on or before August 7, 2026, while the transaction is likely to close by January 31, 2027, subject to regulatory approvals and other conditions.
The deal will take place through a slump sale, which means Mahindra will transfer the complete Truck and Bus Division as a running business instead of selling individual assets separately. As part of the transaction, SML Mahindra will acquire employees, manufacturing assets, intellectual property, licences, permits, contracts, insurance policies, rights, and financial liabilities related to the business.
Moreover, the consideration of Rs 525 crore remains subject to working capital adjustments mentioned in the Business Transfer Agreement.
After completing the transaction, SML Mahindra will manage the Mahindra Group's truck and bus business across light commercial vehicles (LCVs), intermediate commercial vehicles (ICVs), heavy commercial vehicles (HCVs), and buses above the 3.5-tonne segment.
According to Mahindra, bringing both businesses together will help the company achieve better scale, wider market coverage, a stronger product portfolio, and improved operational efficiency. In addition, the group expects the combined business to serve customers more effectively while creating long-term growth opportunities.
Mahindra's Truck and Bus Division generated Rs 2,989 crore in revenue during FY26, contributing around 2.02% of Mahindra & Mahindra's total income from operations during the year.
The company also said its investment in the division stood at nearly Rs 481 crore as of March 31, 2026, representing about 0.65% of its total net worth. However, Mahindra clarified that it does not maintain a separate net worth for the Truck and Bus Division.
The restructuring comes nearly a year after Mahindra acquired a controlling stake in SML Isuzu from Sumitomo Corporation and Isuzu Motors in August 2025. Following the acquisition, the company was renamed SML Mahindra.
With this latest move, Mahindra plans to consolidate all its truck and bus operations under the newly renamed company.
Even after the business transfer, Mahindra confirmed that it will continue manufacturing Mahindra-branded trucks and buses through a contract manufacturing arrangement. Therefore, vehicle production and supply to customers will continue without interruption.
Dr Anish Shah, Group CEO and Managing Director, Mahindra Group, 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. This is an important step towards our aspiration of building a leading position in the Truck & Bus segment and creating long-term value for all stakeholders.”
Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said, “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. Together, the two brands will be better placed to expand customer reach, enhance offerings and create greater value for all the stakeholders."
Vinod Sahay, Executive Chairman of SML, said, "This acquisition is a transformative step in the evolution of SML Mahindra. 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. The combination leverages the complementary strengths of both organizations and is expected to unlock significant commercial and operational synergies. We believe this transaction will enhance our competitiveness, improve operational effectiveness and create sustainable long-term value for our customers, employees, partners and shareholders."
