M&M Completes Exit from CIE Automotive, Shifts Focus to Core Investments

Mahindra Exits CIE Automotive SA, Completes Non-Core Investment Exit Strategy

New Delhi: Mahindra and Mahindra Ltd (M&M) has sold its entire stake in Spanish auto component maker CIE Automotive SA for €126 million, marking a significant step in its strategy to exit non-core investments and focus on high-growth businesses. In an exchange filing on 14 May, the company announced that it has fully exited CIE Automotive SA through a share sale representing a 3.58% stake in the Spanish company.

The full exit comes six months after M&M announced that it had sold 3.58% stake for €119 million in a bid to wind down its presence in the business. As a result, the holding of Mahindra Overseas Investment Company (Mauritius) Limited (MOICML) in CIE Automotive S.A. would become Nil and it would cease to be the associate of MOICML.

The stake sale is part of M&M's broader strategy to exit loss-making international businesses and cash out of non-core investments to fund high-growth segments. In the financial year 2026 (FY26), the company's exits from international subsidiaries and associate companies in Japan, Finland, and Sri Lanka narrowed its portfolio of loss-making foreign companies. M&M has also announced its exit from the Turkey-based Erkunt Foundry business in April.

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The move comes at a time when the company is looking to invest in the Indian market to launch 16 cars in the next five years, including 10 internal combustion engine vehicles and 6 electric vehicles. The exits from international subsidiaries and joint ventures in the three countries have helped M&M shed companies with total annual losses of about ₹313 crore or 2.2% of its consolidated profit of ₹14,073 crore as of 31 March 2025.

M&M and CIE Automotive entered a deal in 2013 to create a global auto component play and allow both companies to benefit from each other's presence in the Indian and European markets. As part of the deal, M&M merged all its component business into an entity called Mahindra CIE Automotive, which saw CIE Automotive hold about 51% stake while M&M held 20%. The remainder was held by the public. Subsequently, M&M also picked up a 13.5% stake in the Bilbao, Spain-based company for €94.24 million.

Since Anish Shah took over as group chief executive of M&M in April 2021, the company has been looking to exit loss-making international business and cash out of non-core investments to fund high-growth segments. In 2023, M&M exited the Mahindra CIE Ltd, which was renamed as CIE Automotive India Ltd. The latest sale of the entire stake in CIE Automotive marks M&M's complete exit from the partnership with the Spanish company.