Mahindra & Mahindra (M&M) in recent reports hinted athat the company is in advanced discussions to acquire the entire promoter stake in SML Isuzu. According to sources cited by CNBC-Awaaz, M&M is evaluating a deal at a valuation of ₹1,400–1,500 per share for SML Isuzu, with the board likely to meet this week to discuss the proposal.
If finalized, the acquisition could significantly bolster M&M’s presence in the commercial vehicle market, particularly the trucks and buses segment, aligning with the company’s strategy to deepen its footprint in this space. However, in response to the report, M&M said it does not wish to comment on speculation, while SML Isuzu has yet to respond.
Meanwhile, M&M on Friday announced that it would hike the prices of its SUVs and commercial vehicles by up to 3% starting April 2025. The company attributed the increase to rising input and commodity costs. The hike will vary across models.
M&M joins a growing list of automakers such as Maruti Suzuki, Hyundai, Tata Motors, Kia, BMW, and Honda that have announced price hikes beginning next month, driven by similar pressures. Maruti Suzuki, for instance, plans a 4% price hike across its range, while Hyundai and Tata Motors will raise prices by up to 3%.
According to Deloitte’s Rajat Mahajan, the dual price hike cycles seen annually are influenced by factors like currency fluctuations and import costs. Mahajan noted that the addition of new features and margin pressure in the entry-level segment also contribute to these hikes.
Icra’s Rohan Kanwar Gupta added that these hikes are intended to offset inflationary and operational cost pressures faced by automakers at the beginning of a fiscal year.
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