- South Africa is one of the largest overseas markets in Mahindra, and the Scorpio pickup truck is its most popular model.
Mahindra plans to expand its automotive production capacity in South Africa, one of its fastest growing overseas markets. Thar Roxx and XUV700 Maker’s local subsidiary recently signed a key agreement with the country’s Industrial Development Corporation (IDC) to begin a feasibility study of the establishment of a new facility in South Africa, which will fully knock down (CKD) vehicles in the coming days. Mahindra currently sells four cars in the country, including the Scorpio-N and XUV700 SUVs, including the XUV 3XO and Scorpio Pickup trucks.
In addition to this new facility, Mahindra plans to increase the production capacity of its existing factory in KwaZulu-Natal province. It also plans to study the feasibility of launching its electric vehicles, such as the BE 6 and XEV9E. South Africa is considering introducing tax incentives or subsidies for consumers to promote sales of electric vehicles, which could help Mahindra deliver electric vehicles at attractive prices. Mahindra Evs’ local parliament could increase the chances of automakers entering the segment for the first time in South Africa.
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Mahindra has been selling cars in South Africa for the past three decades and is one of the largest Indian automakers selling numbers. Rajesh Gupta, CEO of Mahindra, South Africa, said: “Getting to our 25,000th locally assembled Pik Up milestone (a) demonstrates Mahindra’s growing footprint and long-term commitment to South Africa. As we continue to strengthen our operations, this memorandum of understanding allows us to explore the feasibility of expanding local parliamentary capacity.”
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The deal will consider expanding vehicle production potential at the local level, evaluating incentives provided to manufacturers of South Africa’s automotive industry and supply chain infrastructure. It will also help Mahindra study logistical feasibility, which includes finding potential locations for building new facilities. However, the automaker said it has not made any commitments so far.
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First Release Date: February 27, 2025, 09:22 ON IS
