On the move

Since its inception, SML Isuzu has had national service at its heart. Originating as Swaraj Vehicles in 1983 in Punjab, its formation was facilitated by the Indian government with the aim of increasing light commercial vehicle production and decreasing domestic fuel consumption.

Soon after, a collaboration was agreed with Japanese automotive heavyweights Sumitomo and Mazda, paving the way for more than 40 years of success. This marriage of Japanese technology and Indian competitive practices has created a company with a guiding ethos of embracing new technologies to produce the best possible customer experience.

The company was renamed as SML Isuzu in 2011, and has since continued to produce the trucks, vans, buses and ambulances that help form the backbone of Indian society.

A new age

However, SML Isuzu is now entering into a new era with the recent exit of its Japanese partners, who have played an integral role in the company’s history. It was announced in April 2025 that Indian automotive industry powerhouse Mahindra & Mahindra (M&M) would acquire a 58.96 percent stake in SML Isuzu, buying out the stakes of both Isuzu (15%) and Sumitomo (43.96%).

“The acquisition of SML Isuzu marks a significant milestone in Mahindra Group’s vision,” Anish Shah, Mahindra Group CEO and Managing Director, said at the time.

“This acquisition is aligned with our capital allocation strategy for investing in high potential growth areas which have a strong right to win and have demonstrated operational excellence.”

The move is being hailed as a strategic positive for M&M by analysts, particularly thanks to SML Isuzu’s strong brand reputation and green mobility projects, such as its ongoing development of an electric school bus. SML Isuzu is a leader in the school bus market, holding a 20 percent market segment.

“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,” Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, M&M, said of the deal.

“Together, we are well positioned to scale rapidly and drive profitable growth.”

India on the rise

The return to majority Indian ownership is reflective of the rise of the nation’s industry, and its determination to extend into global markets. The world’s most populated country is now also the world’s fourth-largest economy – having just surpassed Japan. Continued growth is expected within the booming automotive industry, with the total market value predicted to rise from an estimated US$113.2 billion in 2025 to US$248 billion in 2035, at a CAGR of 8.1 percent.

SML Isuzu is confident it will capitalize on this in the next few years and see an increase in sales volume. The company already has recently invested in its production facilities, so has the capacity to match the forecasted rise in demand without any further requirement for capital expenditure.

---

“Our proud partnership with SML Isuzu over three decades has allowed us to provide a wide range of braking solutions, starting with hydraulic brakes, growing into booster tandem master cylinder, S-cam brakes and ABS. As its trusted partner, we look forward to growing this successful relationship by spearheading engineering excellence.” – K Vasudevan, Group President & Head – Brakes Business, Brakes India

---

Advertisement

The company’s longstanding tradition of embracing new technology also promises to lead to greater profitability. Its leadership is readily embracing AI and automation in order to improve the productivity and operational efficiency of a historically labor-intensive company.

Agility is also another key strength of the company that will be vital to its continued success. The scale and diversity of India – with more than 1.4 billion people, 28 states and eight union territories and 121 different languages – means there is a vast range of market characteristics and demands.

Because of SML Isuzu’s relatively small size, it has a flexible product development capability, meaning it can meet the unique demands of customers.

Sustainable credentials

Set to play a central role in SML Isuzu’s march into the future is its commitment to sustainability. Experts believe a key reason M&M was driven to invest in the company was its impressive alternate fuels segment, notably its CNG portfolio and its maturing E-bus program.

SML Isuzu’s commitment to sustainability goes beyond reducing carbon emissions, as it is also promoting greater road safety in India. To this end it has made safety a priority in-house, for example, equipping vehicles with cutting-edge braking systems supplied by Brakes India that are especially crucial in monsoon weather.

This push for sustainability also aligns with the Indian Government’s national vision for sustainable development, Viskit Bharat 2047. Translated to ‘developed India’, the program aims to establish India as a self-reliant, modernized and sustainable nation on the 100th anniversary of its independence from the British Empire.

Leading politicians have described the program as vital for lifting India beyond the colonial mindset that has defined its past. As it enters a new era, with its legacy of operational excellence and a readiness to embrace the very forefront of technology, SML Isuzu is poised to help propel India into a golden age of prosperity.