Mahindra is set to enhance its vehicle production capacity in South Africa, recognized as one of its rapidly expanding international markets. A local subsidiary of the manufacturer of the Thar Roxx and XUV700 has recently entered into a significant agreement with the Industrial Development Corporation (IDC) of the country to initiate a feasibility study for establishing a new facility in South Africa, where its Completely Knocked Down (CKD) vehicles will be assembled shortly. Currently, Mahindra markets four models in the nation, including the XUV 3XO and Scorpio pickup truck, along with the Scorpio-N and XUV700 SUVs.

In addition to the new facility, Mahindra intends to augment production capacity at its existing site in KwaZulu-Natal province. The company is also exploring the feasibility of introducing its electric vehicles, such as the BE 6 and XEV9e, in the region. South Africa is contemplating the implementation of tax incentives or subsidies for consumers to stimulate electric vehicle sales, which could enable Mahindra to offer its EVs at competitive prices. The local assembly of Mahindra's electric vehicles may enhance the company's prospects of entering this segment for the first time in South Africa.

Having operated in South Africa for the past thirty years, Mahindra ranks among the largest Indian car manufacturers based on sales figures. Rajesh Gupta, CEO of Mahindra South Africa, remarked, “Achieving the milestone of our 25,000th locally assembled Pik Up is a testament to Mahindra’s expanding presence and long-term dedication to South Africa. As we continue to fortify our operations, this Memorandum of Understanding allows us to investigate the feasibility of broadening our local assembly capabilities.”

The agreement will explore the possibilities of increasing vehicle production at a regional level, assess the incentives available to manufacturers within South Africa's automotive sector, and examine the supply chain infrastructure. Additionally, it will assist Mahindra in analyzing logistical viability, which encompasses the search for suitable sites to establish a new facility. Nevertheless, the automaker has stated that it has not yet made any commitments regarding the establishment of a CKD facility.

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