New Delhi: Mahindra and Mahindra Ltd (M&M) has sold its entire stake in Spanish auto component maker CIE Automotive SA for €126 million, accelerating its strategy to exit non-core investments and fund fast-growing businesses such as automobiles, tractors and aerospace.
In an exchange filing on 14 May, the company said 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 it 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 MOICML (Mahindra Overseas Investment Company (Mauritius) Limited) in CIE Automotive S.A. would become Nil and it would cease to be the associate of MOICML,” Mahindra said in the exchange filing.
The stake sale comes after Mahindra’s exits from international subsidiaries and associate companies in Japan, Finland and Sri Lanka in the financial year 2026 (FY26) narrowed its portfolio of loss-making foreign companies, as the Mumbai-based conglomerate shrinks its international investments to back profitable businesses. In April, Mahindra announced that it will also exit the Turkey-based Erkunt Foundry business.
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, which includes 10 internal combustion engine vehicles and 6 electric vehicles.
The exits from international subsidiaries and joint ventures in the three countries have helped Mahindra 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.
Mahindra and CIE Automotive entered a deal in 2013 to create a global auto component play and allow both the companies to benefit from each other’s presence in the Indian and European markets.
As part of the deal, Mahindra merged all its component business into an entity called Mahindra CIE Automotive, which saw CIE Automotive hold about 51% stake while Mahindra held 20%. The remainder was held by the public. Subsequently, Mahindra 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 Mahindra 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, Mahindra exited the Mahindra CIE Ltd, which was renamed as CIE Automotive India Ltd. The latest sale of the entire stake in CIE Automotive marks Mahindra's complete exit from the partnership with the Spanish company.
