Mahindra South Africa is looking to expand its local manufacturing operations in Durban as demand for its vehicles continues to grow.
The company is considering upgrades to its assembly facility at the Dube TradePort Special Economic Zone near Durban.
This move could mark a significant shift in its South African strategy.
Mahindra to shift towards full-scale production
According to TopAuto, these plans were confirmed by outgoing CEO Rajesh Gupta.
At present, Mahindra assembles its Pik Up bakkie locally using semi-knocked-down (SKD) kits imported from India. These kits arrive largely pre-assembled, with final assembly completed in South Africa.
The company is now exploring the possibility of moving to completely-knocked-down (CKD) production. This would involve importing individual components and assembling vehicles from the ground up locally.
Such a shift would increase operational complexity but also create opportunities for skills development and job creation.
The feasibility of this move is being assessed in partnership with the Industrial Development Corporation.
Building a stronger local presence
Industry stakeholders say the company’s growth makes further investment a logical next step.
Renai Moothilal, CEO of the National Association of Automotive Component and Allied Manufacturers (Naacam), said strong local demand has supported Mahindra’s expansion so far.
He noted that the company has been assembling vehicles in KwaZulu-Natal for several years and has been engaging with industry bodies on plans to deepen local manufacturing.
This includes exploring ways to expand the local supplier base, which would be necessary if CKD production is introduced.
If implemented, the upgrade would strengthen Mahindra’s position in a competitive market while supporting South Africa’s broader manufacturing sector.
For now, the project remains in the assessment phase, but it clearly points to the automaker growing its footprint and investing further in the local economy.
