Mahindra signs MoU to set up new vehicle assembly plants in South Africa

Mahindra plans to expand its vehicle production capabilities in South Africa, which has turned into one of the fastest growing international markets for the Indian vehicle manufacturer. The SUV giant has signed a memorandum (MoU) with South Africa’s Industrial Development Corporation (IDC) to start feasibility studies to establish a new feature.

Mahindra to study feasibility for new CKD plant

The announcement corresponds to the production of its 25,000th locally assembled pickup on February 24, 2025. South Africa will play a major role in Mahindra’s international strategy, and the brand also showed its next generation pickup truck in August 2023. Mahindra is currently four SUVs, scorpio, scorpio, scores in South Africa. The Mahindra SUVs are created in India and exported to South Africa, and the new CKD feature will help address the increasing demand.

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Speaking of milestones, Mahindra South Africa’s CEO Rajesh Gupta said, “Reaching the milestone of our 25,000th locally assembled pick up (A) is a will for Mahindra’s growing footprint and long -term commitment to South Africa. As we continue to strengthen our operations, this MoU allows us to detect the feasibility of expansion of our local assembly capabilities. ,

Detailed study to investigate factors for local assembly

The MoU is an important step in evaluating the ability to expand local manufacturing. Detailed studies will investigate major factors such as South Africa’s motor vehicle industry incentive, export market capacity, workforce development and supply chain infrastructure. The study will also determine logistics and supply chain viability, including potential places, how to determine how Mahindra can integrate in the country’s industrial landscape and including new energy vehicles (NEVs). It should make way for the new BE6 and XAV9E to be launched in South Africa. Mahindra may have an initial-loving profit in the market, with considering introducing tax incentive or subsidy to promote EV sales with South Africa.

Mahindra has a presence in South Africa for three decades. The automaker is planning to increase production capacity in its current facility in Quazulu-Nottal province. He said, the automaker has said that it is fully evaluating opportunities. The company says that there is no commitment to establish CKD facility at this level yet. Mahindra said in a statement that the study will help the car manufacturer make an informed decision.