JOHANNESBURG – Indian automaker Mahindra has signed a memorandum of understanding (MoU) with South Africa’s Industrial Development Corporation (IDC) to explore the possibility of establishing a full-scale vehicle assembly plant in the country.

The agreement will facilitate a detailed feasibility study to assess the viability of a Completely Knocked Down (CKD) assembly facility. The study will examine key factors such as government incentives, export potential, workforce development, and supply chain infrastructure.

The company is already expanding production at its existing assembly facility in KwaZulu-Natal, operated by AIH Logistics, reinforcing its long-term commitment to the local market.

The study will also assess logistics feasibility and explore Mahindra’s potential integration into South Africa’s growing new energy vehicle (NEV) sector. However, the MoU does not confirm a commitment to establishing a CKD plant at this stage.

The announcement comes as Mahindra South Africa celebrates a milestone, having assembled its 25,000th locally built Pik Up on 24 February 2025.

Rajesh Gupta, CEO of Mahindra South Africa, emphasized the company’s growing presence: “This study will provide valuable insights into expanding our local assembly capabilities while supporting South Africa’s industrial growth objectives.”

Rian Coetzee, Acting Divisional Executive at the IDC, highlighted the alignment with the South African Automotive Master Plan (SAAM) 2035, which aims to strengthen the country’s position as an automotive hub.

The feasibility study’s findings will guide Mahindra and the IDC in determining the next steps for potential large-scale manufacturing in South Africa.