Mahindra SA has opened a semi-knocked down (SKD) vehicle assembly factory at the Dube TradePort Special Economic Zone in KwaZulu-Natal.
The plant will assemble the Pik Up bakkie range and is located close to Mahindra’s original 2018 assembly site. The investment is a significant scale-up in capacity and technical sophistication as the Indian brand enters its 21st year in SA.
Mahindra started out as an import brand only but started assembling SKD Pik Ups locally in 2018. The new SKD plant incorporates advanced quality control systems, expanded production lines and dedicated customisation zones for SA customers.
“Our original facility played a pivotal role in establishing our local footprint,” Mahindra SA CEO Rajesh Gupta said at Tuesday’s inauguration ceremony. “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.”
The Durban facility has the capacity to assemble more than 1,000 Pik Up single- and double-cab models a month. Further scaling up is possible depending on demand. It also offers the flexibility to accommodate new models that Mahindra plans to introduce, alongside an increasing level of locally sourced components.
Earlier this year, Gupta said completely-knocked down (CKD) manufacture was not yet an option as the volumes didn’t justify that. Since then, Mahindra and the Industrial Development Corporation have started a feasibility study for such a plant. A decision is expected within the next 18 months.
Mahindra’s global engineering teams have been working with local suppliers to identify opportunities for greater localisation, further supporting SA’s industrial development, the company said.
“This investment underscores our confidence in SA as a manufacturing base and a growth market for Mahindra globally,” Rajesh said. “It reflects our commitment to creating jobs, supporting local industry, and delivering robust, reliable vehicles that meet the needs of SA customers.”
Sachin Arolkar, head of international operations at Mahindra & Mahindra, said: “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.”
Since assembling its first local bakkie in 2018, Mahindra is now among the 10 best-selling brands in SA and one of the fastest-growing marques.
“The new assembly facility strengthens the brand’s ability to compete in one of the most dynamic bakkie markets in the world, while laying the foundation for sustained growth in its third decade in the country,” Rajesh said.
Dempsey Naidoo, the chair of AIH Logistics — Mahindra’s local assembly partner — the partnership “has delivered a world-class semi knocked-down automotive facility that stands as the largest of its kind in SA.
“This achievement reflects the power of collaboration between global expertise and local capability, creating jobs, developing skills, and advancing the country’s automotive manufacturing sector.”
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.