Mahindra South Africa has signed a Memorandum of Understanding (MoU) with South Africa’s Industrial Development Corporation (IDC) to conduct a feasibility study on establishing a Completely Knocked Down (CKD) vehicle assembly facility in the country. The study will evaluate factors such as automotive industry incentives, export potential, supply chain infrastructure, workforce development, and logistics, including potential locations for the facility.
The announcement coincides with Mahindra South Africa reaching the production milestone of its 25,000th locally assembled Pik Up vehicle at its KwaZulu-Natal facility on February 24. The company is already expanding capacity at this site, operated by AIH Logistics.
The feasibility study will also explore opportunities for New Energy Vehicles (NEV) production. Mahindra has previously highlighted South Africa’s role in its global operations, having chosen the country for the global reveal of its next-generation Pik Up in August 2023.
Both Mahindra and IDC emphasized that the MoU remains an exploratory step, with no commitment yet to establish the CKD facility. Investment decisions will be made based on the study’s findings.