M&M fully exits CIE Automotive, accelerates shift to core investments
New Delhi: Mahindra and Mahindra Ltd (M&M) has accelerated its strategy to exit non-core investments and finance fast-growing sectors such as automobiles, tractors and aviation by selling its entire stake in Spanish auto parts maker CIE Automotive SA for €126 million.
In an exchange filing filed on May 14, the company said it had fully exited CIE Automotive SA through the sale of shares representing a 3.58% stake in the Spanish company. The full exit comes six months after it announced it was selling a 3.58% stake for €119 million in a bid to end its involvement in the company.
“As a result, MOICML’s (Mahindra Overseas Investment Company (Mauritius) Limited) holding in CIE Automotive SA will be reduced to zero and it will cease to be a partner of MOICML,” Mahindra said in the exchange filing. he said.
The stake sale comes after Mahindra’s exit from international subsidiaries and affiliates in Japan, Finland and Sri Lanka in FY26 (FY26) narrowed its portfolio of loss-making foreign companies as the Mumbai-headquartered conglomerate scaled back its international investments to bolster profitable businesses. In April, Mahindra also announced that it would exit its Türkiye-based Erkunt Foundry business.
The move comes at a time when the company plans to invest in the Indian market to launch 16 cars, including 10 internal combustion engine vehicles and 6 electric vehicles, in the next five years.
Exiting international subsidiaries and joint ventures in three countries helped Mahindra shed companies with combined annual losses of about $100 million. ₹313 crore or 2.2% of its consolidated profit. ₹14,073 crore as on March 31, 2025.
Mahindra and CIE Automotive reached an agreement in 2013 to create a global auto parts play and allow both companies to leverage each other’s presence in the Indian and European markets.
As part of the deal, Mahindra consolidated its entire components business into an entity called Mahindra CIE Automotive; here CIE Automotive held approximately 51% stake and Mahindra held 20% stake. The remaining part was in the hands of the people. Later, Mahindra acquired 13.5% shares of the Bilbao, Spain-based company for €94.24 million.
Since Anish Shah took over as Mahindra’s group CEO in April 2021, the company has been aiming to exit loss-making international businesses and cash out non-core investments to fund high-growth segments.
In 2023, Mahindra was spun off from Mahindra CIE Ltd, which was renamed CIE Automotive India Ltd. The latest sale of entire shares in CIE Automotive sees Mahindra completely exiting its partnership with the Spanish company.
