Mahindra Explores CKD Plant in South Africa with Feasibility Study

03 Mar 2025 CW Team

Mahindra & Mahindra has signed a Memorandum of Understanding (MoU) with South Africa's Industrial Development Corporation (IDC) to conduct a feasibility study on establishing a completely knocked down (CKD) vehicle assembly plant in the country. This initiative aims to evaluate local manufacturing potential, leveraging South Africa’s automotive incentives, export opportunities, workforce capabilities, and supply chain infrastructure.

The study will also examine logistics feasibility and potential plant locations, with a focus on integrating New Energy Vehicles (NEVs) into the country’s industrial landscape. Mahindra clarified that while this MoU signals interest in local manufacturing, no commitment has been made to set up a CKD facility at this stage.

Mahindra South Africa is concurrently expanding production capacity at its existing assembly facility in KwaZulu-Natal, operated by AIH Logistics. This move underlines the company’s long-term commitment to the South African market, further solidified by the recent milestone of producing its 25,000th locally assembled Pik Up on February 24, 2025.

In August 2023, Mahindra introduced its next-generation Pik Up to a global audience in South Africa, reinforcing the country’s strategic role in its international expansion. The feasibility study with IDC will help Mahindra South Africa make informed decisions about potential manufacturing investments in the region.

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