Mahindra South Africa, a subsidiary of the Indian automotive leader, has entered into a Memorandum of Understanding (MoU) with the Industrial Development Corporation (IDC) to conduct a thorough feasibility study on the possibility of setting up a Completely Knocked Down (CKD) vehicle assembly plant in South Africa. The company is also working to expand its production capacity at the KwaZulu-Natal assembly facility operated by AIH Logistics as it marks its third decade of operations in the country, which Mahindra often refers to as its “second home.”
Rajesh Gupta, CEO of Mahindra South Africa, shared, “Reaching the milestone of our 25,000th locally assembled Pik Up is a testament to Mahindra’s growing presence and long-term commitment to South Africa.” “As we continue to strengthen our operations, this MoU allows us to explore the potential for expanding our local assembly capabilities. This study will provide valuable insights into how we can further integrate into South Africa’s automotive industry while supporting the country’s broader industrial growth goals,” Gupta added.
Mahindra has recently become one of the fastest-growing automotive brands in South Africa, with its vehicles, especially its locally tailored pickup trucks, outperforming established Japanese and European competitors. The MoU represents an important step in assessing the possibility of expanding local manufacturing. The feasibility study will examine key aspects like South Africa’s automotive industry incentives, the potential for export markets, workforce development, and supply chain infrastructure.
The study will also evaluate logistics and supply chain considerations, including potential facility locations, to determine how Mahindra can further integrate with South Africa’s industrial ecosystem, including the production of New Energy Vehicles (NEVs). Although the MoU signals Mahindra’s interest in exploring local manufacturing, it is only an evaluation at this stage, and no firm commitment has been made to establish a CKD facility.
Rian Coetzee, Acting Divisional Executive for Industry Planning and Project Development at the IDC, noted that Mahindra’s involvement in the feasibility study aligns with South Africa’s Automotive Master Plan (SAAM) 2035, which seeks to enhance the country’s competitiveness as an automotive manufacturing hub. “Depending on the outcome of the study, there is significant potential for Mahindra to increase its production capacity in South Africa, which could create new job opportunities,” Coetzee said.
Mahindra South Africa is a prominent subsidiary of the Indian multinational conglomerate Mahindra & Mahindra, which has established itself as a key player in the South African automotive and agricultural industries. With a focus on providing reliable and affordable vehicles, Mahindra South Africa offers a wide range of products, including SUVs, bakkies (pickup trucks), and tractors. The company aims to meet the diverse needs of the South African market, from personal transport to farming solutions, all while promoting sustainability and innovation. Through its robust dealer network and customer service, Mahindra South Africa has gained significant market share, contributing to the country’s economic growth while offering high-quality, value-driven vehicles tailored to local preferences.
