Stories
Mahindra to Sell Truck and Bus Division to SML Mahindra for Rs 525 Crore
- •Mahindra and Mahindra board approved the sale of its truck and bus business to subsidiary SML Mahindra for Rs 525 crore on a slump sale basis.
- •The transaction aims to simplify the Mahindra Group commercial vehicle structure by consolidating operations under a single focused entity.
- •The deal is expected to close by January 31, 2027, pending regulatory approvals and working capital adjustments.
- •The combined volumes of SML and Mahindra truck and bus rank fourth in the domestic commercial vehicle segment, backed by an extensive dealer network.
- •Mahindra will continue manufacturing trucks and buses through a contract manufacturing arrangement to ensure supply continuity after the transfer.
Key Questions Answered
Mahindra & Mahindra's board approved the sale of its truck and bus division to subsidiary SML Mahindra for Rs 525 crore on a slump sale basis. The transaction consideration is subject to working capital adjustments and is expected to close by January 31, 2027.
The transaction simplifies the Mahindra Group's commercial vehicle structure by consolidating truck and bus operations under a single focused entity to drive growth, leadership, and operational efficiencies. The combined business ranks fourth in the domestic commercial vehicle segment.
Mahindra & Mahindra will continue to manufacture trucks and buses through a contract manufacturing arrangement after the transfer to ensure a smooth supply continuity. Meanwhile, SML Mahindra will take overall charge of the combined commercial vehicle business.
