Mahindra & Mahindra will conduct a feasibility study for a CKD vehicle assembly plant in South Africa after signing an MoU with the IDC. The study will assess key automotive industry factors, including incentives and supply chain logistics. This initiative highlights Mahindra’s commitment to increasing its local manufacturing presence while no final decision about the plant has been made.
Mahindra & Mahindra announced on Friday that it will undertake a feasibility study to assess the potential for establishing a completely knocked down (CKD) vehicle assembly plant in South Africa. The company has signed a Memorandum of Understanding (MoU) with the Industrial Development Corporation (IDC) of South Africa, signaling a significant step towards evaluating local manufacturing expansion.
This feasibility study will investigate crucial factors, including South Africa’s automotive industry incentives, export market opportunities, workforce development, and the state of supply chain infrastructure. It will also evaluate logistics and potential sites, aiming to better integrate Mahindra within the country’s industrial framework, encompassing New Energy Vehicles (NEV).
Despite the MoU representing Mahindra’s intent to explore manufacturing options, the company clarified that no commitments have yet been made regarding the establishment of a CKD facility. This study will provide Mahindra South Africa and the IDC with informed insights to guide any future decisions.
Mahindra South Africa is concurrently increasing production capacity at its assembly facility managed by AIH Logistics in KwaZulu-Natal. This progression highlights the company’s long-term dedication to the South African market, evidenced by the recent production of its 25,000th locally assembled Pik Up, celebrated on February 24, 2025.
In summary, Mahindra & Mahindra’s MoU with the IDC marks an important step in evaluating the feasibility of a CKD plant in South Africa, examining various relevant factors. The findings from this study will inform potential future decisions regarding local manufacturing. The company’s ongoing expansion in the South African market further underscores its commitment to local operations and production growth.
Original Source: www.business-standard.com
