Mumbai-based automotive major Mahindra & Mahindra has announced a bold move to strengthen its position in the commercial vehicle (CV) market with an agreement to acquire a 58.96 percent stake in SML Isuzu (SML) at INR 650 per share, representing an investment of INR 5.55 billion.

Following the acquisition, Mahindra will also launch a mandatory open offer to acquire up to an additional 26 percent stake from public shareholders, in compliance with SEBI's Takeover Regulations.

This strategic acquisition marks a major step forward in Mahindra’s ambition to expand its footprint in the >3.5-tonne CV segment. At present, Mahindra holds a modest 3 percent market share in this space, compared to its dominant 52 percent share in the <3.5-tonne light commercial vehicle (LCV) market. With the addition of SML’s capabilities and brand strength, Mahindra expects to immediately double its market share to 6 percent, and is aiming for 10–12 percent by FY2031 and over 20 percent by FY2036.

Founded in 1983, SML Isuzu is a listed company with a all-India presence and a strong legacy in the trucks and buses segment. It holds a leading 16 percent market share in the Intermediate Light Commercial Vehicle (ILCV) buses category. For FY2024, SML reported operating revenue of INR 21.96 billion and an EBITDA of INR 1.79 billion, showcasing profitable operations, frugal manufacturing and strong engineering capabilities.

Mahindra sees the acquisition as an opportunity to unlock significant value through synergies across cost optimisation, network expansion, brand integration, manufacturing efficiency, talent pool strengthening and complementary product portfolios. Mahindra states that its Trucks and Buses Division has already made notable advances in technology, design and innovation by leveraging its broader automotive capabilities – strengths that will be further enhanced through this deal.

The transaction structure involves Mahindra acquiring the entire 43.96 percent stake held by Sumitomo Corporation, the current promoter of SML, as well as a 15 percent stake from Isuzu Motors.

Dr Anish Shah, Group CEO & MD, Mahindra Group, said: “The acquisition of SML Isuzu marks a significant milestone in Mahindra Group’s vision of delivering 5x growth in our emerging businesses. This acquisition is aligned with our capital allocation strategy for investing in high-potential growth areas that have a strong right to win and have demonstrated operational excellence.”

Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, added, “SML brings a strong legacy, a loyal customer base and a credible product portfolio that complements Mahindra’s existing offerings in the trucks and buses segment. This acquisition is a pivotal step toward our ambition to become a full-range, formidable player in commercial vehicles by enhancing market coverage, unlocking operating leverage through platform consolidation, a unified supplier and network base, and better plant utilisation. Together, we are well-positioned to scale rapidly and drive profitable growth.”

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The Ministry of Road Transport and Highways (MoRTH) and Eicher Trucks & Buses, a division of VE Commercial Vehicles (VECV), have signed a Memorandum of Understanding (MoU) regarding the replacement scheme for commercial vehicles in the Delhi-NCR region.

Under the agreement, Eicher Trucks & Buses will provide an 8 percent discount on the ex-showroom price of eligible vehicles. CV customers can also receive additional support regarding motor vehicle tax, registration fees, interest subvention and fuel benefits, as defined by the scheme criteria. The process will be managed through a digital platform integrated with the VAHAN database and the vehicle scrapping ecosystem.

S S Gill, Chief Commercial Officer, VE Commercial Vehicles, said, “For over 4 decades, Eicher Trucks and Buses customers have driven modernisation in the Indian CV industry. Carrying this tradition, Eicher Trucks and Buses is pleased to join hands with the Ministry of Road Transport and Highways on their path-breaking policy to replace old and polluting vehicles from the NCR region. Eicher customers will gain from the substantial incentives offered by the Government of India and State Governments of Delhi, Haryana, Uttar Pradesh and Rajasthan under this program."

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Chennai-headquartered commercial vehicle major Ashok Leyland has introduced a new range of trucks equipped with air suspension, which includes three models: the AVTR 4925 10x2 MAV, the AVTR 4625 10x2 MAV and the AVTR 4525 8x2 MAV. These vehicles offer payload advantages of up to 4 tonnes.

The trucks are designed to provide stability, reduce vibrations and improve tyre life. The company says that the suspension system requires no greasing, facilitating maintenance-free operations.

The new air-suspension-equipped truck range is available in cowl and cabin options with various loading spans. Standard features include Intelligent Vehicle Acceleration Control (iVAC) and Automatic Traction Control (ATC) to assist with fuel efficiency and traction.

Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said, "Ashok Leyland has always been a technology leader in the Indian CV industry. Since our inception we have been known for introducing technology solutions that create meaningful value for customers. With the launch of the new Air Suspension technology in trucks, we are reinforcing that position. These new trucks offer best in class payload capability, improved comfort, and better performance, helping our customers improve productivity and profitability."

Sanjeev Kumar, President MHCV, Ashok Leyland, added, "Customers today are looking for vehicles that provide better efficiency, reliability, and value throughout their operations. Our new air suspension range has been developed keeping these requirements in mind. With benefits such as improved vehicle stability, reduced vibrations, superior ride comfort, and improved tyre life, these trucks are designed to deliver a better ownership experience for customers."

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Pune-headquartered Force Motors has signed a Memorandum of Understanding (MoU) with the Ministry of Road Transport & Highways (MoRTH) to participate in the Commercial Vehicle Replacement Scheme for the Delhi-NCR region.

The scheme facilitates the replacement of BS-IV and older trucks and buses in Delhi-NCR with BS-VI or electric vehicles to lower emissions. Under the agreement, Force Motors will provide benefits to customers through its dealership network in the region.

Prasan Firodia, Managing Director, Force Motors, said, "Force Motors is pleased to partner with the Government of India in this important initiative to modernise the commercial vehicle fleet in the Delhi-NCR region. The scheme aligns with our commitment to delivering cleaner, more efficient mobility solutions. We look forward to enabling fleet operators and customers to transition to the latest generation of commercial vehicles through this collaborative initiative."

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Chennai-headquartered automotive major Ashok Leyland has inaugurated a new dealership for Light Commercial Vehicles (LCVs) in Ratnagiri. This facility is the 16th LCV dealership in Maharashtra, adding to a distribution network of 950 touchpoints across India.

The new dealership is operated by Lavekar Motors as a 3S (Sales, Service and Spares) facility, which features 8 service bays and is located near Mahanagar CNG Pump.

Viplav Shah, Head – LCV Business, Ashok Leyland Ltd. said, “Maharashtra has always been an important market for us, and we are excited to further strengthen our presence in this region. Our relationship with customers is built on trust, performance, and shared growth. Our products are known for their superior mileage, reliability, and performance with a robust network and an industry-leading service retention, we take pride in the continued confidence our customers place in us. The opening of this new dealership marks yet another step in our commitment to delivering world-class products and unmatched services to our valued customers.”

Till date, Ashok Leyland has sold over 600,000 LCVs in India, which are manufactured at the Hosur plant.

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