Mahindra has signed an MoU to assess the establishment of a new vehicle assembly plant in South Africa, following significant growth in the region. A feasibility study will review local manufacturing opportunities and logistics, underlying Mahindra’s commitment to expand production capabilities. Rajesh Gupta highlighted the milestone of 25,000 locally assembled pickups as indicative of this growth.
Mahindra has signed a Memorandum of Understanding (MoU) with the Industrial Development Corporation of South Africa to explore the establishment of a new vehicle assembly plant. This initiative aims to enhance Mahindra’s production capabilities in South Africa, which has become one of the company’s fastest-growing international markets. The MoU signifies an important step in evaluating local manufacturing expansions.
On February 24, 2025, Mahindra celebrated the assembly of its 25,000th locally produced pickup. South Africa is pivotal in Mahindra’s global strategy, and the company showcased a new pickup model in August 2023. Currently, Mahindra offers four SUV models in South Africa, transporting them from India, and the proposed facility would help meet increasing demand.
Rajesh Gupta, CEO of Mahindra South Africa, remarked on the significance of reaching the milestone of 25,000 assembled units, highlighting it as a sign of Mahindra’s commitment to the region. He emphasized that the MoU presents opportunities to assess local assembly capabilities to fortify operations in South Africa.
The establishment of a new vehicle assembly plant in South Africa is a pivotal move for Mahindra as it seeks to enhance its presence in the growing automotive market. The feasibility study will evaluate various factors critical for the success of local manufacturing. Although there is currently no definitive commitment to the CKD facility, the exploration marks an important step forward for Mahindra’s strategic goals in the region.
Original Source: www.hindustantimes.com
