Mahindra Launches New Vehicle Assembly Plant in Durban to Boost Local Production and Customisation

The plant, developed from the ground up near Mahindra’s original 2018 assembly site, is built to the company’s global manufacturing standards and features advanced quality control systems, expanded production lines, and dedicated customisation zones for South African customers.

“Our original facility played a pivotal role in establishing our local footprint,” says Rajesh Gupta, CEO of Mahindra South Africa.

“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 new Durban facility can produce more than 1,000 Pik Up single- and double-cab models monthly, with scope for expansion as demand increases. It has also been designed to accommodate future models and a higher proportion of locally sourced components.

Mahindra’s global engineering teams are working with South African suppliers to increase localisation, further supporting the country’s industrial development.

Earlier this year, the company partnered with the Industrial Development Corporation (IDC) to launch a feasibility study into a full-scale manufacturing plant in South Africa. Insights from the new facility’s operations will help shape that study.

“This investment underscores our confidence in South Africa as both a manufacturing base and a key growth market for Mahindra globally,” adds Gupta.

“It reflects our commitment to creating jobs, supporting local industry, and delivering robust, reliable vehicles that meet the needs of South African customers.”

Strong growth trajectory

Since producing its first local bakkie in 2018, Mahindra has grown into a top 10 best-selling brand in South Africa.

Naamsa, the industry business council, reports Mahindra as one of the three fastest-growing brands since opening the plant, and the fastest-growing brand overall in the past financial year (April 2024 to March 2025).

The company has also recorded the strongest start to 2025 and leads in year-to-date growth.

A partnership for local manufacturing

Dr Dempsey Naidoo, chairman of AIH Logistics, Mahindra’s local assembly partner, says the collaboration since 2018 has produced the largest semi-knockdown automotive facility of its kind in South Africa.

“This achievement reflects the power of collaboration between global expertise and local capability,” says Naidoo. “It has created jobs, developed skills, and advanced South Africa’s automotive manufacturing sector.”