KATHMANDU: Mahindra Group is considering a major restructuring that could separate its tractors, passenger vehicles and truck businesses into independent entities, according to ET.
The move is meant to help Mahindra grow faster, stay more focused and make its main businesses stronger, reports say.
Talks are still in the early stage and Mahindra is reviewing whether the plan is possible. Right now, all three businesses are part of Mahindra & Mahindra (M&M), the group’s main company.
Over the past five years, Mahindra has seen strong growth in both its automotive and farm equipment divisions. The company leads in SUVs and tractors, but it now wants to reduce its dependence on agriculture-linked demand, which can fluctuate with monsoons and rural sentiment.
A senior executive said the goal is to make each business future-ready and capable of scaling independently. “It helps unlock potential and drive growth,” the person said.
The move is similar to what Tata Motors recently did by separating its passenger and commercial vehicle units into two listed companies.
That step made its operations clearer and helped each business focus better. Analysts say Mahindra’s plan could have the same benefits and make it easier to attract investors and partners.
This isn’t the first time Mahindra has considered a split. Earlier plans were dropped because of concerns about losing shared benefits such as sourcing and research. But this time, the company appears more confident since each division already has its own leadership, plans and operations.
Mahindra’s tractor business maintains profit margins of around 18–19%, while automotive margins are about 10–11%. The truck business is still growing but is considered better suited to operate independently in a more cost-efficient way.
Analysts believe the restructuring could help Mahindra prepare for its next phase of growth and sharpen its focus in a fast-changing auto market.
