Indian automotive giant Mahindra & Mahindra is reportedly considering a significant upgrade of its South African manufacturing operations as it looks to expand its footprint in a growing but highly competitive market.
The company, valued at over R600 billion and one of India’s largest automakers, is in advanced discussions to potentially shift its Durban-based facility from semi-knocked-down (SKD) assembly to full completely knocked-down (CKD) production. The move is being assessed in collaboration with the Industrial Development Corporation.
At present, Mahindra’s South African plant assembles vehicles using imported pre-built components. A shift to CKD production would significantly increase local manufacturing activity, allowing for more parts to be produced or assembled domestically, strengthening the local automotive value chain.
Industry experts say the transition could help Mahindra reduce exposure to potential import tariffs while also improving its competitiveness in South Africa’s fast-growing mid-range vehicle segment. The market has become increasingly contested, with Chinese and Indian brands gaining traction alongside established players such as Ford and Mercedes-Benz.
According to industry body leaders, including Renai Moothilal of the National Association of Automotive Component and Allied Manufacturers, deeper local production could have a strong employment impact. CKD operations are estimated to support significantly more jobs per unit compared to SKD assembly, while also stimulating supplier development and skills transfer.
Moothilal noted that Mahindra’s growing popularity in South Africa and its consistent presence among the country’s top-selling brands support the case for expansion. He added that discussions with industry stakeholders have been ongoing for several years as the company evaluates its next phase of investment.
The potential expansion comes at a time when South Africa’s automotive market is increasingly dominated by imports, which now account for nearly 70% of vehicles sold. Industry leaders warn that while competition is increasing, long-term reliance on imports could weaken domestic manufacturing capacity.
If approved, Mahindra’s upgrade could mark a meaningful boost for South Africa’s industrial base, supporting local jobs, supplier networks, and broader economic activity in the automotive sector.