Mahindra Plans to Level-Up Local Production with New CKD Facility

Indian automaker Mahindra has signed a memorandum of understanding with key players in South African infrastructure development which will further assess a CKD vehicle assembly facility in the country…

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During a press conference hosted at the Wanderers Stadium in Johannebsurg, Mahindra signed a Memorandum of Understanding (MoU) between the Indian Auto manufacturing giant and South Africa’s Industrial Development Corporation (IDC). While this doesn’t confirm another production facility for Mahindra just yet, it does show a commitment to the local market since it will serve as a feasibility study on the potential establishment of a Completely Knocked Down (CKD) vehicle assembly facility in the country.

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Considering Mahindra is already a vehicle manufacturer of SKD (Semi Knocked Down) vehicles in Durban, the same plant that celebrated its 25 000th locally assembled Pik Up, this commitment shouldn’t be taken lightly. South Africa is a critical piece of the puzzle for Mahindra’s Southern African and African aspirations. During the press conference, Mahindra also confirmed that its production capacity at the aforementioned AIH Logistics in KwaZulu-Natal will be increased to satisfy up to 1 500 units per month.

Growing its operations in the country, this study will assess logistics and supply chain feasibility, including potential locations, to determine how Mahindra can further integrate into the country’s industrial landscape, including New Energy Vehicles (NEV).

“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.” said Rajesh Gupta, CEO of Mahindra South Africa.

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. Acting Divisional Executive for Industry planning and project Development at the IDC, 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.

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The post Mahindra Plans to Level-Up Local Production with New CKD Facility appeared first on CAR Magazine.


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