Mahindra South Africa and IDC Sign MoU to explore CKD Assembly in South Africa

Mahindra South Africa and the IDC have signed an MoU to explore a CKD assembly facility. While no commitment has been made, the study aligns with SAAM 2035 and could enhance local production and job creation.

Southdowns, South Africa- Mahindra South Africa has strengthened its presence by signing an MoU with South Africa’s Industrial Development Corporation (IDC) to explore the feasibility of a CKD vehicle assembly facility.

This announcement aligns with Mahindra South Africa’s milestone of producing its 25,000th locally assembled Pik Up on 24 February 2025. In August 2023, Mahindra also showcased its next-generation Pik Up in the country, highlighting South Africa’s strategic role in its global plans.

Currently, Mahindra is expanding production capacity at its AIH Logistics-operated facility in KwaZulu-Natal. The feasibility study will assess key factors such as industry incentives, export potential, workforce development, supply chain infrastructure, and logistics, including opportunities in New Energy Vehicles (NEV).

Mr. Rajesh Gupta, CEO of Mahindra South Africa, said, “Reaching the milestone of our 25 000th locally assembled Pik Up is 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.”
 
While this MoU signals Mahindra’s intent to explore local manufacturing opportunities, it is purely an evaluation. No commitment has been made toward establishing a CKD facility at this stage. The study will allow Mahindra South Africa and IDC to make an informed assessment before any future decisions are taken. 

Mr. Rian Coetzee, said Mahindra’s commitment to ramp up its feasibility study in SA aligns with the objectives of the South African Automotive Master Plan (SAAM) 2035 whose focus is to strengthen the competitiveness of SA as an automotive assembly location. 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 potential to create employment opportunities.