Mahindra inks feasibility memo with IDC into CKD product study

Having celebrated its 20^th anniversary in South Africa last year, Mahindra has expanded its workings with the signing of a feasibility memorandum of understanding with the Industrial Development Corporation (IDC) for a transition from semi-knockdown (SKD) produced vehicles to complete knockdown (CKD).

20 years of growth

Announced less than a year after producing the 25 000^th Pik Up at its plant in Durban, the memorandum, signed at the Wanderers cricket ground in Johannesburg on Tuesday (25 February), will provide the Indian brand with what it describes as “valuable insights” into possibly producing other products in CKD form for the local and export market in the coming years.

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“[When we arrived in South Africa 20 years ago], we said we see this country as our second home outside India,” Mahindra South Africa CEO, Rajesh Gupta, said.

“We have gone step-by-step, grown rationally and started investing with a high focus on customers by bringing the products which will make a difference to their lives. Over the last 10 months, we had a growth rate of 13.9%, but still, this a matter of being responsible, not proud.

“And this why the third decade [in South Africa] will be about being smarter and brighter. We, as Mahindra, are here to stay and will maintain progress going forward”.

Discreet ‘yes’ to Global Pik Up?

Along with the memorandum, the marque also confirmed an increase in production from the current 1 000 to 1 500 vehicles as part of a factory expansion into the possible, but not confirmed, production of the incoming Global Pik Up unveiled as a concept two years ago.

Spied earlier this month undergoing testing in India, the newcomer, rumoured to be called Scorpio X, will make its world premiere later this year before going on-sale in key export markets in 2026.

For the time being, its approval for local assembly rests on the findings of the feasibility report Mahindra didn’t go into details about a timeframe.

It did, however, reiterate that the Global Pik Up will form part of an eventual three-tier product range as its flagship above the Pik Up and the workhorse-aimed Bolero.

Plant expansion

Part of an investment of undisclosed amount announced last year, the mentioned expansion will see factory space increase to 14 000 m² Gupta described at the time as one of the “largest and most complex of its kind on the African continent” for a single brand.

“Twenty years ago, when were we asked what are plans for South Africa were, we said, this will be our second home. At that stage, it was a dream and a statement. Today, it is a reality,” Mahindra South Africa President and Chairman, Veejay Nakra, said.

“We have had our ups and downs, likely any other business. At that time, we were talking about doing 1 000 vehicles a year. Today, we’re doing 1 000+ a month. It has been a fulfilling journey, but now, it is time to look to the next decade”.

Announcing South Africa as the most important market outside India for the production Global Pik Up, Nakra, who has been at Mahindra since its arrival on local soil two decades ago, said the marque remains committed as per the plant’s revisions in conjunction with partner AIH Logistics.

“Our facility is an integrated one which focuses on a spare parts warehouse… and we have also invested into creating a fully fledged training facility for capability and development”.

Commenting on the study, which will also involve the selling of new energy vehicles ranging from hybrids to EVs, IDC Acting Divisional Head for Industry Planning and Projects, Rian Coetzee, said it solidifies the country’s automotive sector as one of the “most advanced” on the continent.

“We want to investigate different options available to us and then develop a future product going forward. With this, hopefully, we can go to a full-scale CKD manufacturing plant in the future,” Coetzee said.

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