Mahindra Eyes Expanding Local Assembly Operations In South Africa

Mahindra has signed a Memorandum of Understanding (MoU) with the Industrial Development Corporation of South Africa to explore opening another assembly plant in the country. Mahindra has been present in South Africa since 1996 and opened its first assembly plant in the country in 2018. The facility, which is operated by AIH Logistics and located in KwaZulu-Natal, rolled out its 25,000th locally assembled Pik-Up last month.

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Mahindra currently locally assembles its Pik Up range in South Africa

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The MoU sets the groundwork for an in-depth feasibility study on the potential of setting up a second facility in the country. The company says the study will assess factors such as logistics and supply chain, industry incentives, export market potential, and more. It will also include determining “how Mahindra can further integrate into the country’s industrial landscape” and possibly assembling New Energy Vehicles locally.

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That aside, the carmaker is also ramping up production at its existing plant in KwaZulu-Natal.