M&M to explore feasibility of setting up CKD plant in South Africa

Mahindra & Mahindra on Friday said it will undertake a feasibility study to explore potential of setting up a completely knocked down vehicle assembly facility in South Africa.

The company has inked a MoU with South Africa's Industrial Development Corporation (IDC) for a feasibility study on the potential of setting up a completely knocked down (CKD) vehicle assembly plant, the Mumbai-based auto major said in a statement.

The Memorandum of Understanding (MoU) marks a significant step in evaluating the potential for expanded local manufacturing, with a detailed study set to examine key factors such as South Africa's automotive industry incentives, export market potential, workforce development, and supply chain infrastructure, it added.

Additionally, the 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), the auto major said.

"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," Mahindra & Mahindra said.

The study will allow Mahindra South Africa and IDC to make an informed assessment before any future decisions are taken, it added.

Mahindra South Africa is also in the process of increasing its production capacity at its assembly facility operated by AIH Logistics in KwaZulu-Natal. This achievement underscores the company's growing presence and long-term commitment to the South African market, the automaker noted.

The MoU announcement coincides with a significant milestone of Mahindra South Africa celebrating a major milestone with the production of its 25,000th locally assembled Pik Up on February 24, 2025.

In August 2023, Mahindra showcased its next-generation Pik Up to a global audience in the country, reinforcing South Africa's role in its international strategy.