New Delhi, Feb 28: Mahindra & Mahindra has announced a feasibility study to explore the possibility of establishing a completely knocked down (CKD) vehicle assembly facility in South Africa. The Mumbai-based automaker signed a Memorandum of Understanding (MoU) with South Africa’s Industrial Development Corporation (IDC) to assess the potential for local manufacturing expansion.
Strategic Feasibility Study for Local Manufacturing
The study aims to evaluate various key factors, including:- Automotive Industry Incentives: Assessing the benefits South Africa offers to vehicle manufacturers.
- Export Market Potential: Understanding the scope for Mahindra’s vehicles in regional and international markets.
- Workforce Development: Analyzing the availability and skill levels of the local workforce.
- Supply Chain Infrastructure: Examining logistics feasibility and potential locations for setting up the facility.
No Immediate Commitment on CKD Facility
While the MoU signals Mahindra’s intent to explore local manufacturing, the company clarified that it is strictly an evaluation phase with no immediate commitment to setting up a CKD facility."The study will allow Mahindra South Africa and IDC to make an informed assessment before any future decisions are taken," the company stated.
Expanding Production Capabilities in South Africa
Mahindra South Africa is already ramping up its production capacity at its existing assembly facility in KwaZulu-Natal, operated by AIH Logistics. This expansion underscores the company's growing footprint and long-term commitment to the South African market.Celebrating Key Milestones
The announcement comes at a significant moment as Mahindra South Africa recently celebrated the production of its 25,000th locally assembled Pik Up on February 24, 2025. The milestone highlights the brand’s increasing presence in the region.Mahindra’s Global Strategy
In August 2023, Mahindra showcased its next-generation Pik Up to a global audience in South Africa, further reinforcing the country’s strategic importance in its international expansion plans.With this feasibility study, Mahindra & Mahindra is taking a crucial step toward strengthening its position in South Africa’s automotive sector while exploring opportunities for enhanced local manufacturing and integration into the region’s growing automobile industry.
