Mahindra & Mahindra (M&M) is looking to acquire the entire promoter stake in commercial vehicle maker SML Isuzu.
The deets: M&M is eyeing a valuation of ₹1,400–1,500/share. Sumitomo Corporation currently holds 43.9%, while Isuzu Motors owns 15%.
By the numbers: SML Isuzu’s Q3 net profit plunged 80.2% to ₹0.5 crore, with sales down 14.1% to ₹331.8 crore.
Why it matters: the deal would push M&M beyond tractors and SUVs into light and medium-duty trucks and buses. It also gives M&M access to SML’s manufacturing, dealer network, and customer base, strengthening its position against Tata Motors and Ashok Leyland.
Big picture: the rise of e-commerce is fueling demand for light commercial vehicles, while India’s vehicle scrappage policy is prompting fleet upgrades.
In FY24, commercial vehicle sales hit 9.6 lakh units, with projections pointing to 1.4 million in 2025
M&M ended 1% lower, while SML Isuzu rose more than 3% on the news.
