Mahindra Eyes Expansion: Feasibility Study for South African Manufacturing

Mahindra has signed an MoU with the Industrial Development Corporation to study the viability of setting up a Completely Knocked Down vehicle assembly facility in South Africa, aiming to expand its local manufacturing. The study will evaluate South Africa's automotive incentives, export market potential, and workforce development.

Indian automotive powerhouse Mahindra has announced a new Memorandum of Understanding with South Africa's Industrial Development Corporation. This agreement paves the way for a detailed feasibility study into establishing a Completely Knocked Down (CKD) vehicle assembly plant in the region.

The local arm of Mahindra is enhancing its production capabilities which could signal a shift in the country's industrial landscape. As the company celebrates assembling its 25,000th Pik Up vehicle in South Africa, CEO Rajesh Gupta highlighted Mahindra's expanding influence and commitment to the country.

The study will delve into several critical factors, such as South Africa's automotive industry incentives and potential for increased local manufacturing. Acting Divisional Executive Rian Coetzee noted the alignment with the South African Automotive Master Plan 2035's objectives. The project could boost local employment and enhance the country's standing as a competitive automotive manufacturing hub.

(With inputs from agencies.)