M&M sells remaining 3.58% stake in CIE Automotive for €126 million

Mahindra & Mahindra (M&M) has fully exited Spain-based auto component maker CIE Automotive S.A after its wholly owned subsidiary sold the remaining 3.58% stake in the company for approximately €126 million.

In an exchange filing on Thursday, the company said Mahindra Overseas Investment Company (Mauritius) Limited (MOICML) sold its remaining holding in CIE Automotive Spain, following an earlier partial divestment announced in December 2025.

With the completion of the transaction, MOICML’s holding in CIE Automotive has become nil and the Spanish company will cease to be an associate of the Mahindra subsidiary.

The latest transaction values the stake sale at around ₹1,200 crore based on current exchange rates.

Mahindra had earlier sold a similar 3.58% stake in CIE Automotive in December 2025 for around €119 million as part of its broader strategy to monetise non-core investments and optimise capital allocation.

CIE Automotive is a Spain-based global automotive components supplier with operations across multiple countries and manufacturing technologies including forging, aluminium casting, machining, plastics and stamping solutions. The company supplies components and sub-assemblies to major global automobile manufacturers.

Mahindra’s association with CIE dates back more than a decade and was linked to the formation and evolution of Mahindra CIE Automotive in India. Over time, the group gradually reduced its exposure to the Spanish parent entity.

Analysts view the exit as part of Mahindra’s continued focus on strengthening its core automotive, farm equipment and electric vehicle businesses while unlocking value from legacy investments.

Brokerage commentary in recent months had described the CIE Automotive investment as largely non-core to Mahindra’s long-term strategy.

The development also comes at a time when Mahindra has been aggressively investing in electric SUVs, capacity expansion and growth businesses including defence, farm machinery and last-mile mobility.

Interestingly, CIE Automotive recently reported record quarterly results despite weakness in the broader global automotive sector, highlighting resilient profitability and strong cash generation.

Mahindra & Mahindra shares remained in focus following the announcement as investors assessed the impact of the monetisation and potential capital redeployment opportunities.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.