Mahindra South Africa has taken another big step in its journey in the country with the opening of a new semi-knocked down (SKD) vehicle assembly plant at the Dube TradePort Special Economic Zone in KwaZulu-Natal. The new factory will focus on assembling the popular Pik Up bakkie range, offering both single- and double-cab models for the South African market.
The plant, which is close to Mahindra’s original assembly site, launched in 2018, marks a significant upgrade in capacity and technology for the Indian automotive brand. Mahindra first entered the South African market as an import-only brand before starting local assembly of its Pik Up range in 2018. The new facility is designed with advanced quality control systems, expanded production lines, and special customisation areas to meet specific customer needs.
In an inauguration ceremony on Tuesday, Mahindra SA’s Chief Executive Officer, Rajesh Gupta, explained the reason for the expansion. “Our original facility played a pivotal role in establishing our local footprint. As demand for our locally assembled Pik Up range continued to rise, we needed a facility with the scale, flexibility and technology to meet future growth while maintaining world-class quality,” he said.
The Durban assembly plant has the capacity to produce more than 1,000 units a month, with room to expand if demand increases. It also offers flexibility to handle new models Mahindra plans to introduce in the future, alongside using more locally sourced components. Gupta noted earlier this year that building a completely-knocked down (CKD) plant was not yet feasible due to production volumes. However, Mahindra and the Industrial Development Corporation are now conducting a feasibility study to see if a CKD facility can be established. A decision is expected in about 18 months.
In addition to assembly, Mahindra’s global engineering teams are working with local suppliers to increase the level of localisation. This means more parts and materials will be sourced from South African companies, boosting local industries and creating more economic value. “This investment underscores our confidence in South Africa as a manufacturing base and a growth market for Mahindra globally,” Gupta said. “It reflects our commitment to creating jobs, supporting local industry, and delivering robust, reliable vehicles that meet the needs of our customers.”
Also at the event, Sachin Arolkar, head of international operations at Mahindra & Mahindra, described South Africa as a key part of the company’s global growth plans. “SA is a cornerstone market in Mahindra’s international growth strategy. This facility not only strengthens our ability to serve local customers but also enhances our regional manufacturing capabilities,” he said.
Since it began local assembly in 2018, Mahindra has grown to become one of the top 10 best-selling automotive brands in South Africa and one of the fastest-growing in the bakkie market. Gupta added that the new facility would help the company compete strongly in one of the most competitive bakkie markets in the world, while building a solid foundation for future growth in its third decade in the country.
Dempsey Naidoo, chair of AIH Logistics — Mahindra’s local assembly partner — also highlighted the scale of the achievement. “This partnership has delivered a world-class semi knocked-down automotive facility that stands as the largest of its kind in South Africa. It reflects the power of collaboration between global expertise and local capability, creating jobs, developing skills, and advancing the country’s automotive manufacturing sector,” he said.
The launch of this plant is seen as a major boost to South Africa’s automotive industry, which is one of the largest manufacturing sectors in the country. The new Mahindra facility is expected to contribute significantly to job creation, skills development, and the growth of local supplier networks.
