Mahindra Group Denies Plans To Demerge Auto, Tractor Businesses
M&M further stated that it has clarified this matter in the past and continues to maintains that it sees much greater value from synergies of keeping these businesses under the same entity.
Mahindra Group clarified on Thursday that there are no plans for a demerger of the Auto and Tractor businesses, contrary to a report published by The Economic Times earlier in the day.
"In view of the above speculation, the company on its own considers it necessary to clarify to the stock exchanges that there is no plan for a demerger of the auto and tractor businesses, " Mahindra and Mahindra said in an exchange filing.
"The company has come across an article titled 'M&M may drive its key units down separate paths' dated Oct. 9, 2025 published in The Economic Times newspaper and similar article has been published online which references an ongoing review of hiving off its various divisions," it added.
M&M further stated that it has clarified this matter in the past and continues to maintains that it sees much greater value from synergies of keeping these businesses under the same entity.
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According to the filing, the company has complied with and continues to comply with the relevant disclosure norms under the Listing Regulations.
The Economics Times had earlier reported that the Mahindra Group is examining the possibility of splitting its core business verticals, which include tractors, passenger vehicles (PVs) and trucks, into separate companies.
"The conglomerate has reportedly initiated preliminary assessments to evaluate the feasibility and implications of such a restructuring. At present, these segments function under Mahindra & Mahindra (M&M), the flagship company of the group," the report said.
Citing people familiar with the matter, ET added that the group’s strategy has gradually evolved, with more emphasis on the automotive division, which is a deliberate move to reduce exposure to agriculture-linked fluctuations. The logic is to have a well-diversified portfolio.
The report further shared, the passenger vehicle division, anchored by brands such as Scorpio, Thar and the XUV range, as well as the upcoming Born Electric platform, could also be hived off. The relatively smaller truck and commercial vehicle business may become a focused standalone vertical.
"There is also speculation that SML Isuzu, recently acquired by Mahindra, could serve as the cornerstone for its commercial vehicle operations," it added.
