Ashok Leyland Denies Reports of Acquiring Stake in SML Isuzu

Key Highlights:

• Ashok Leyland denied rumors about acquiring a promoter’s stake in SML Isuzu.
• The company issued an official statement to the NSE and BSE.
• SML Isuzu is a joint venture between Japan’s Sumitomo Corporation and Isuzu Motors.
• Ashok Leyland’s strength is in heavy vehicles, and SML Isuzu’s focus is on lighter vehicles.
• Ashok Leyland continues to focus on growth and innovation.

Ashok Leyland Limited, a leading commercial vehicle manufacturer in India, has denied media reports about buying a promoter’s stake in SML Isuzu, a truck and bus manufacturer from Punjab. Many news sources had claimed that Ashok Leyland was in advanced talks with Japan’s Sumitomo Corporation, the main promoter of SML Isuzu, to buy its stake. However, the company has dismissed these reports.

Ashok Leyland issued a formal statement to the National Stock Exchange (NSE) and BSE Limited, calling the reports “factually incorrect” and asking stakeholders to ignore the misinformation. The company assured that it always discloses important information as per regulations and will continue to do so. The clarification, signed by Company Secretary N Ramanathan, was submitted on March 26, 2025, through the NSE’s NEAPS portal and BSE’s Listing Centre. Ashok Leyland’s stock is listed as ASHOKLEY (NSE) and 500477 (BSE).

The rumors about the acquisition surfaced as India's automotive sector saw more companies expanding through partnerships and buyouts. With Ashok Leyland’s strong presence in heavy commercial vehicles and SML Isuzu’s focus on lighter vehicles, such a deal seemed possible, leading to speculation among analysts and investors.

Also Read: Ashok Leyland Opens New Bus Manufacturing Plant in Vijayawada, Andhra Pradesh

About Ashok Leyland and SML Isuzu

Ashok Leyland, based in Chennai and part of the Hinduja Group, is a leading name in India’s automotive industry, producing trucks, buses, and defense vehicles. The company has a strong market presence and has been in operation since 1948. On the other hand, SML Isuzu, earlier known as Swaraj Mazda Limited, focuses on light and medium commercial vehicles. It has been a joint venture between Japan’s Sumitomo Corporation and Isuzu Motors since the 1980s. Sumitomo holds a major stake in SML Isuzu, making it a key promoter.

Ashok Leyland’s quick denial has put these rumors to rest for now. The company’s statement highlights its commitment to maintaining trust with investors and regulators by addressing misleading reports directly. The speculation briefly sparked interest in both companies' stocks, but Ashok Leyland’s clarification is expected to stabilize investor sentiment. As the automotive sector evolves with the rise of electric vehicles and stricter emission norms, Ashok Leyland continues to focus on innovation and growth.