Mahindra & Mahindra has revealed its intention to undertake a feasibility study regarding the establishment of a completely knocked down (CKD) vehicle assembly plant in South Africa. The company has entered into a Memorandum of Understanding (MoU) with the Industrial Development Corporation (IDC) of South Africa to evaluate the practicality of such a facility.

The feasibility study will explore several key factors, including the incentives available within South Africa’s automotive sector, opportunities in export markets, workforce development, and the existing supply chain infrastructure. Furthermore, Mahindra will assess logistics and supply chain viability, potential site locations, and the possibilities for incorporating New Energy Vehicles (NEV) into the nation’s industrial framework. The objective of the study is to identify how Mahindra can utilize local resources to enhance operational efficiency and improve its competitive position in the market.

Mahindra has clarified that the MoU represents an evaluation phase and does not signify a definitive commitment to the establishment of a CKD facility. The company stated, “While this MoU indicates Mahindra’s intention to investigate local manufacturing possibilities, it remains an evaluation process. No commitment has been made regarding the establishment of a CKD facility at this time.” The findings from the study will assist Mahindra South Africa and the IDC in making a well-informed decision regarding any future investments.

In addition, Mahindra South Africa is currently increasing its production capacity at its existing assembly plant operated by AIH Logistics in KwaZulu-Natal. This development further solidifies the company’s long-term commitment to the South African market, reflecting Mahindra’s confidence in the region's potential and the rising demand for durable and dependable vehicles.

This announcement coincides with Mahindra South Africa reaching a significant achievement—the production of its 25,000th locally assembled Pik Up on February 24, 2025. This milestone follows the introduction of Mahindra's next-generation Pik Up in South Africa in August 2023, underscoring the strategic importance of the country.

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Through its partnership with the IDC, Mahindra seeks to make a well-informed choice regarding local manufacturing, which could establish South Africa as a significant centre for its automotive activities. Should the feasibility study produce favourable outcomes, this initiative may lead to enhanced job creation, skill enhancement, and a more robust automotive manufacturing environment in South Africa.

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