Mahindra probes viability of SA assembly plant

Mahindra South Africa, the wholly-owned subsidiary of the Indian auto manufacturing giant, has taken its first step towards the possible establishment of a completely knocked down (CKD) vehicle assembly facility in SA.

- Roy Cokayne

If it happens, it will result in investment into SA's automotive industry, job creation and potential opportunities for the local automotive supply industry.

Mahindra SA signed a memorandum of understanding (MoU) on Tuesday with the Industrial Development Corporation (IDC) on an in-depth feasibility study that will allow both parties to make an informed assessment before any decisions are taken.

The MoU signals Mahindra's intent, but is purely an evaluation at this point.

Mahindra SA in 2018 outsourced the semi-knocked down (SKD) assembly of its Pik Up bakkie range at a facility at the Dube TradePort special economic zone in Durban to Automotive Investment Holdings Logistics, with both companies investing in facilities and equipment for this plant.

Rajesh Gupta, CEO of Mahindra SA, said the SKD facility has reached the milestone of 25 000 locally assembled Pik Up models a testament to Mahindra's growing footprint and long-term commitment to SA.