Johannesburg – In a move that could redefine South Africa’s automotive landscape, Mahindra South Africa and the Industrial Development Corporation (IDC) have signed a Memorandum of Understanding (MoU) to assess the feasibility of establishing a Completely Knocked Down (CKD) vehicle assembly facility in the country.
This development aligns with Mahindra’s ongoing expansion strategy in South Africa, where the automaker has marked a key milestone—the production of its 25,000th locally assembled Pik Up on February 24, 2025. The company has been strengthening its presence in the region, notably showcasing its next-generation Pik Up to a global audience in August 2023, reinforcing South Africa’s role in Mahindra’s international growth plans.
In line with this expansion, Mahindra South Africa is increasing its production capacity at its KwaZulu-Natal-based assembly facility, operated by AIH Logistics. This effort reflects the company’s long-term commitment to the South African market and its potential as a key player in the local automotive sector.
The newly signed MoU initiates an in-depth feasibility study that will analyze South Africa’s automotive industry incentives, workforce potential, export prospects, and supply chain infrastructure. Additionally, it will assess the logistical and economic viability of different locations, including how Mahindra can integrate into the country’s evolving industrial landscape, particularly in relation to New Energy Vehicles (NEV).
While this agreement signals Mahindra’s strong interest in local manufacturing, it remains an exploratory phase. The study aims to provide comprehensive insights, enabling Mahindra South Africa and IDC to make an informed decision on the establishment of a CKD facility. No final commitment has been made at this stage, but this step underscores Mahindra’s confidence in South Africa’s automotive sector and its potential for future growth.
