Mahindra Signs MoU with IDC to Explore CKD Assembly Plant in South Africa.

Mahindra South Africa, the local subsidiary of the Indian automotive giant, has signed a Memorandum of Understanding (MoU) with the Industrial Development Corporation (IDC) to conduct a feasibility study on establishing a Completely Knocked Down (CKD) vehicle assembly facility in the country.

As Mahindra enters its third decade in South Africa—often referred to as its “second home”-the company is also expanding operations at its existing assembly facility run by AIH Logistics in KwaZulu-Natal. The brand recently celebrated the production milestone of its 25,000th locally assembled Pik Up, underscoring its growing footprint in the region.

“Reaching this milestone is a testament to Mahindra’s long-term commitment to South Africa,” said Rajesh Gupta, CEO of Mahindra South Africa. “As we strengthen our operations, this MoU enables us to explore the feasibility of expanding our local assembly capabilities. The study will provide critical insights into deeper integration within South Africa’s automotive industry while supporting the country’s industrial growth objectives.”

Mahindra has rapidly emerged as one of the fastest-growing automotive brands in South Africa, with strong sales driven by models tailored to local market needs. Its Pik Up range, in particular, has outperformed more established Japanese and European competitors.

The feasibility study will evaluate key factors such as South Africa’s automotive industry incentives, export market potential, workforce development, and supply chain infrastructure. Additionally, the study will assess logistics and potential locations for deeper integration into the country’s industrial landscape, including opportunities in the New Energy Vehicle (NEV) segment.

IDC’s Acting Divisional Executive for Industry Planning and Project Development, Rian Coetzee, highlighted that Mahindra’s commitment aligns with the South African Automotive Master Plan (SAAM) 2035, which seeks to enhance the nation’s automotive competitiveness.

“Depending on the study’s outcome, there is significant potential for Mahindra to scale up production in South Africa, which could lead to job creation and further economic benefits,” Coetzee said.

While the MoU marks a step toward potential local manufacturing, both Mahindra and the IDC emphasized that this is an exploratory phase, with no firm commitment yet on establishing a CKD plant. The study will inform future strategic decisions regarding Mahindra’s role in South Africa’s automotive sector.

HBL