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Mahindra Merges SML Isuzu, Eyes Doubled Truck Revenue
16 Aug
Summary
- Mahindra aims to double truck-and-bus revenue to ₹12,500 crore by FY31.
- Acquisition of SML Isuzu aims to boost market share to 10-12% by FY31.
- The new Blazo i-TRK targets improved mileage and profitability for trucks.
Mahindra & Mahindra is set to enhance its standing in India's above-3.5-tonne commercial vehicle sector by integrating SML Isuzu. The company projects combined truck-and-bus revenues to surge from approximately ₹6,000 crore to ₹12,500 crore by FY31. This strategic move, spearheaded by Vinod Sahay, aims to leverage synergistic benefits in sourcing, product development, and distribution.
The acquisition of a 58.96% stake in SML Isuzu for ₹555 crore in August 2025, followed by the transfer of Mahindra Truck and Bus Division (MTBD) for ₹525 crore, is targeted for completion by January 31, 2027. This consolidation will create a focused entity for the group's truck-and-bus operations, combining SML's strengths in buses and light commercial vehicles with Mahindra's expertise in heavy trucks and technology.
The combined entity aims to capture 10-12% of the above-3.5-tonne market share by FY31, up from around 6% previously. Service reach is also a key focus, with plans to expand the dealership and service network significantly over the next 18 months. The introduction of the seven-product Blazo i-TRK range marks the first major product launch post-acquisition, boasting improved mileage and advanced features.
