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Mahindra eyes CKD assembly in SA
The Indian Auto manufacturer and SA’s IDC are preparing a feasibility for a Completely Knocked Down facility in the country.
Indian Auto manufacturing giant Mahindra and South Africa’s Industrial Development Corporation (IDC) have signed a Memorandum of Understanding (MoU) to conduct a feasibility study for a Completely Knocked Down (CKD) vehicle assembly facility in the country.
The MoU announcement coincides with the milestone of Mahindra South Africa producing its 25,000th locally assembled Pik Up on 24 February 2025.
In August 2023, Mahindra showcased its next-generation Pik Up to a global audience in the country, reinforcing South Africa’s role in its international strategy.
Mahindra South Africa is also in the process of increasing its production capacity at its assembly facility operated by AIH Logistics in KwaZulu-Natal. This underscores the company’s growing presence and long-term commitment to the South African market.
Rajesh Gupta CEO of Mahindra SA and Rian Coetzee of the IDC. Photo supplied.
The MoU marks a significant step in evaluating the potential for expanded local manufacturing, with a detailed study set to examine key factors such as South Africa’s automotive industry incentives, export market potential, workforce development, and supply chain infrastructure.
The study will assess logistics and supply chain feasibility, including potential locations, to determine how Mahindra can further integrate into the country’s industrial landscape, including New Energy Vehicles (NEV).
“Reaching the milestone of our 25 000th locally assembled Pik Up is testament to Mahindra’s growing footprint and long-term commitment to South Africa,” said Rajesh Gupta, CEO of Mahindra South Africa. “This study will provide valuable insights into the potential for deeper integration into South Africa’s automotive landscape while supporting the country’s industrial growth objectives.”
Photo Courtesy Mahindra.
While this MoU signals Mahindra’s intent to explore local manufacturing opportunities, it is purely an evaluation. No commitment has been made toward establishing a CKD facility at this stage. The study will allow Mahindra South Africa and IDC to make an informed assessment before any future decisions are taken.
Rian Coetzee, acting divisional executive for industry planning and project development at the IDC, said Mahindra’s commitment to ramp up its feasibility study in SA aligned with the objectives of the South African Automotive Master Plan (SAAM) 2035. The SAAM focus is to strengthen the competitiveness of SA as an automotive assembly location.
“Depending on the outcome of the feasibility study, there is great potential for the company to increase its production output in South Africa – a factor that has potential to create employment opportunities,” said Coetzee.
