Mahindra & Mahindra is assessing plans to upgrade its manufacturing facility in South Africa, as the Indian carmaker seeks to capitalize on rising demand for affordable vehicles in the country, according to media reports citing sources familiar with the matter.
The Mumbai-based company is working with the Industrial Development Corporation to evaluate the feasibility of introducing completely knocked-down (CKD) production at its plant near Durban. The same sources indicated that Mahindra currently assembles semi-knocked down vehicles at the facility, and the planned upgrade would mark a significant expansion of its local manufacturing capabilities.
According to the same sources, shifting to CKD production would allow Mahindra to import vehicles in parts and assemble them locally, helping the company reduce costs and potentially avoid import tariffs on fully built vehicles.
The move comes amid intensifying competition in South Africa’s automotive market, where Indian and Chinese manufacturers are gaining ground in the mid-market segment. Companies such as Chery Automobile and Suzuki Motor Corporation have expanded their presence, eroding the market share of established players including Ford Motor Company and Mercedes-Benz Group.
The expansion could also help Mahindra navigate potential policy changes under Cyril Ramaphosa, whose government is considering measures to boost domestic auto manufacturing, including possible tariffs on imported vehicles.
Mahindra, which opened its South African assembly plant in 2018, currently produces its Pik Up light trucks at the site, vehicles that have gained popularity among farmers and are also used by security services in neighboring countries.
Industry data shows that Toyota Motor Corporation remains the country’s largest car seller, while Mahindra continues to expand its footprint alongside other emerging-market competitors.
The potential upgrade underscores a broader shift among global automakers toward deeper localization strategies in key growth markets, as companies seek to balance cost pressures, regulatory changes, and evolving consumer demand.
