Mahindra & Mahindra denies auto business demerger report, says no such plans

Mahindra & Mahindra (M&M) has denied media reports suggesting that the company is exploring a demerger of its automotive and tractor divisions.

In a statement to stock exchanges, the automaker said there is “no plan for a demerger of the Auto and Tractor businesses” and that it continues to see “much greater value from synergies by keeping these businesses within the M&M entity.”

The clarification came after a report in The Economic Times claimed that Mahindra Group was internally evaluating the possibility of separating its tractors, passenger vehicles (including electric vehicles), and truck businesses into independent entities.

The discussions were reportedly at a preliminary stage, aimed at assessing whether the move could unlock greater value for shareholders.

M&M, however, refuted the speculation, emphasising that it has already clarified its stance in the past. “The Company has complied with and continues to comply with the relevant disclosure norms under the Listing Regulations,” it said.

Also Read: M&M to unveil new EV in November; eyes high-teens share in long term

Analysts have noted that M&M’s automotive segment has expanded rapidly over the past five years. Between FY21 and FY25, the segment’s revenue share rose from 35% to 57%, while EBIT contribution increased from 13% to 42%. In contrast, the farm equipment division’s EBIT contribution declined from 74% to 27%.



The reports surfaced weeks after Tata Motors completed the separation of its passenger and commercial vehicle businesses, fuelling speculation about similar moves in the sector.

As of 2:16 PM, M&M shares were trading 0.6% higher at ₹3,446.7 on the NSE.