Sumitomo Corp. and Isuzu Motors agreed to sell their combined 58.96% stake in Indian commercial vehicle manufacturer SML Isuzu to Mahindra & Mahindra for 5.55 billion rupees ($65.2 million), the companies announced Monday.
Mahindra will acquire Sumitomo’s 43.96% stake and Isuzu’s 15% shareholding at 650 rupees per share, marking its strategic push into India’s highly competitive truck and bus market. The deal requires regulatory approvals, including clearance from India’s Competition Commission.
SML Isuzu, established in 1983, produces midsize trucks and buses under the Isuzu brand but has struggled with sluggish sales in India’s price-sensitive commercial vehicle sector. The company manufactured approximately 14,000 units in the fiscal year ended March.
The acquisition aligns with Mahindra’s ambitious growth targets in commercial vehicles, where it currently holds just 3% market share in segments above 3.5 tonnes. The company expects to immediately double this figure to 6%, with plans to reach 10-12% by fiscal 2031.
For Sumitomo, the exit comes as part of its medium-term strategy through March 2027 to focus resources on more competitive businesses. The Japanese trading house stated that Mahindra’s existing truck operations offer better synergies with SML to foster long-term growth.
Isuzu, which has only handled after-sales service for SML since 2017, maintains a separate Indian joint venture with Mitsubishi Corp. focused on pickup trucks. The automaker plans to use India as a development hub for emerging market vehicle models through 2031.
