Mahindra South Africa, a subsidiary of India’s leading automotive manufacturer, has signed a Memorandum of Understanding (MoU) with South Africa’s Industrial Development Corporation (IDC) to assess the feasibility of establishing a Completely Knocked Down (CKD) vehicle assembly plant in the country. This move comes as the company celebrates 30 years of operations in South Africa, a market it considers its “second home.” Mahindra is also working to increase production capacity at its KwaZulu-Natal assembly facility, operated by AIH Logistics.
Rajesh Gupta, CEO of Mahindra South Africa, highlighted the significance of the milestone. “Assembling our 25,000th Pik Up locally underscores Mahindra’s growing presence and long-term commitment to South Africa,” he said. “This MoU allows us to explore opportunities to expand our local assembly capabilities. The study will help us understand how we can better integrate into South Africa’s automotive sector and contribute to the country’s industrial growth.”
Mahindra has emerged as one of South Africa’s fastest-growing automotive brands, with its locally tailored pickup trucks outperforming competitors from Japan and Europe. The MoU marks a critical step in evaluating the potential for expanding local manufacturing. The feasibility study will focus on key areas such as South Africa’s automotive incentives, export market potential, workforce development, and supply chain infrastructure. It will also assess logistics and potential facility locations to determine how Mahindra can align with South Africa’s industrial ecosystem, including the production of New Energy Vehicles (NEVs). However, the company has not yet committed to establishing a CKD facility, as the study remains in its early stages.
Rian Coetzee, Acting Divisional Executive for Industry Planning and Project Development at the IDC, emphasized that Mahindra’s involvement aligns with South Africa’s Automotive Master Plan (SAAM) 2035. This plan aims to strengthen the country’s position as a global automotive manufacturing hub. “If the study yields positive results, Mahindra could significantly boost its production capacity in South Africa, creating new job opportunities,” Coetzee said.
Mahindra South Africa, part of the Indian multinational Mahindra & Mahindra, has become a major player in the country’s automotive and agricultural sectors. The company offers a diverse range of vehicles, including SUVs, pickup trucks (bakkies), and tractors, designed to meet the needs of South African consumers. With a focus on affordability, reliability, and sustainability, Mahindra has built a strong dealer network and customer service infrastructure, earning a significant share of the local market. By tailoring its products to South African preferences, the company continues to support economic growth while delivering high-quality, value-driven solutions.
