Mahindra & Mahindra denies reports of auto, tractor business demerger

Mumbai, Oct 9 Mahindra & Mahindra (M&M) on Thursday dismissed media reports claiming that the company is considering a demerger of its automotive and tractor businesses.

In a filing to stock exchanges, the automaker clarified that there are "no plans for a demerger of the Auto and Tractor businesses", adding that it continues to derive "much greater value from synergies by keeping these businesses within the M&M entity".

"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," the automaker said in the exchange filing.

"The Company has clarified this in the past and maintains that it sees much Greater value from synergies by keeping these businesses within the M&M entity," the filing added.

The statement comes after a report in The Economic Times and other media platforms suggested that the Mahindra Group was internally exploring a possible separation of its core verticals — tractors, passenger vehicles (including electric vehicles), and commercial trucks — into standalone entities.

According to the report, the deliberations were at an early stage and aimed at assessing whether such a move could unlock additional shareholder value.

"The Company has come across an Article titled 'M&M may drive its key units down separate paths' dated 9th October 2025, published in the Economic Times newspaper, and a similar article has been published online which references an ongoing review of hiving off its various divisions," the company said.

M&M, however, reiterated that it has consistently communicated its position on the matter and will continue to comply with all disclosure obligations under listing regulations.

Speculation about a potential restructuring has surfaced multiple times in recent years, with market watchers suggesting that a spin-off could allow sharper focus on growth businesses such as electric mobility.

But the company maintains that the integrated structure offers stronger operational and financial synergies.

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