Mahindra Signs MoU to Explore Local Assembly in South Africa

Mahindra has taken a strategic step toward expanding its presence in South Africa by signing a Memorandum of Understanding (MoU) with the Industrial Development Corporation (IDC) of South Africa. The agreement will facilitate a comprehensive feasibility study on establishing a Completely Knocked-down (CKD) vehicle assembly facility in the country.

The MoU announcement coincides with Mahindra South Africa's production milestone of its 25,000th locally assembled Pik Up, which was announced on February 24, 2025. This achievement highlights the company’s growing operations in the region. Mahindra previously reinforced its commitment to the South African market by unveiling its next-generation Pik Up to a global audience in August 2023.

Currently, Mahindra South Africa is expanding its production capacity at its KwaZulu-Natal assembly facility, which is operated by AIH Logistics. This expansion underscores the company’s long-term commitment to strengthening its local footprint.

The feasibility study will evaluate several critical factors, including South Africa’s automotive industry incentives, export market potential, workforce development, and supply chain infrastructure. It will also analyse logistics and potential locations for the facility, as well as the integration of New Energy Vehicles (NEVs) into Mahindra’s production strategy.

Rajesh Gupta, CEO of Mahindra South Africa, emphasized that the MoU represents an opportunity to explore local manufacturing capabilities rather than an immediate commitment to establishing a CKD plant. He noted that the study would provide key insights into deeper integration within the country’s automotive industry.

“Reaching the milestone of our 25,000th locally assembled Pik Up is a testament to Mahindra’s growing footprint and long-term commitment to South Africa. As we continue to strengthen our operations, this MoU allows us to explore the feasibility of expanding our local assembly capabilities. This study will provide valuable insights into the potential for deeper integration into South Africa’s automotive landscape while supporting the country’s industrial growth objectives,” said Gupta. 

IDC Acting Divisional Executive for Industry Planning and Project Development, Rian Coetzee, highlighted the alignment between Mahindra’s feasibility study and the objectives of the South African Automotive Master Plan (SAAM) 2035. The plan aims to enhance South Africa’s competitiveness as an automotive assembly hub.

“Depending on the outcome of the feasibility study, there is great potential for the company to increase its production output in South Africa — a factor that has the potential to create employment opportunities,” said Coetzee.