Mahindra has signed an MoU with South Africa’s IDC to explore setting up a new vehicle assembly plant. As one of its fastest-growing markets, South Africa plays a crucial role in Mahindra’s strategy. The feasibility study will assess local manufacturing potential, driven by increasing demand for Mahindra SUVs and upcoming New Energy Vehicles (NEV).
Mahindra has signed a Memorandum of Understanding (MoU) with South Africa’s Industrial Development Corporation (IDC) to explore the establishment of a new vehicle assembly plant in the country. As one of Mahindra’s fastest-growing international markets, South Africa is pivotal to the automaker’s global strategy. The feasibility study will assess the potential for expanding local manufacturing amid growing demand for Mahindra vehicles, which currently include four distinct SUV models.
In conjunction with the announcement, Mahindra commemorated the assembly of its 25,000th locally manufactured pickup on February 24, 2025. The subsidiary’s CEO, Rajesh Gupta, emphasized that this achievement underscores Mahindra’s commitment to enhancing its operational footprint in South Africa. The company’s current exports from India are aligned with increasing local assembly capabilities through this initiative.
The detailed feasibility study will investigate vital aspects such as automotive industry incentives, export opportunities, workforce development, and supply chain infrastructure in South Africa. It will also cover logistics and possible sites for the new facility, focusing on integrating local production, particularly with New Energy Vehicles (NEV) on the horizon.
After three decades in the South African market, Mahindra aims to bolster production at its existing facility located in KwaZulu-Natal. While no commitment has been made at this stage, the company reaffirmed that the upcoming study will facilitate informed decision-making regarding the establishment of a Completely Knocked Down (CKD) assembly plant.
In summary, Mahindra’s MoU to evaluate setting up a new assembly plant in South Africa signifies a strategic move to enhance local manufacturing capabilities. With a focus on meeting rising demand and potentially introducing new energy vehicles, the feasibility study will clarify the prospects of local assembly and contributions to the South African automotive landscape. Mahindra’s sustained presence in the country positions it well for future growth.
Original Source: www.hindustantimes.com
