Durban’s vehicle assembly plant fuels sharp rise in bakkie production across South Africa
Mahindra’s latest high-tech facility in La Mercy ramps up local output, adds flexibility for future models, and supports South Africa’s growing automotive manufacturing sector.
MAHINDRA South Africa officially opened its new purpose-built Vehicle Assembly Facility at the Dube TradePort Special Economic Zone in La Mercy, Durban, yesterday (August 12). The investment marks a significant leap in production capability, enabling the brand to assemble over 1000 Pik Up models per month and laying the groundwork for future model introductions.
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Replacing Mahindra’s original 2018 assembly site, the new plant features expanded production lines, advanced quality control systems, and dedicated customisation zones tailored to South African buyers. Built to Mahindra’s global manufacturing standards, it offers the flexibility to scale volumes further and integrate additional models as demand grows.
“As demand for our locally assembled Pik Up range continues to rise, we needed a facility with the scale, flexibility, and technology to meet future growth,” said Rajesh Gupta, CEO of Mahindra SA.
The facility also supports Mahindra’s drive for greater localisation. Global engineering teams are working with local suppliers to increase South African content, strengthening the local automotive value chain and boosting job creation.
Earlier in 2025, Mahindra partnered with the Industrial Development Corporation to study the feasibility of a full-scale manufacturing plant in South Africa. Operational insights from the new Durban facility will inform that process.
“This investment reflects our confidence in South Africa as both a manufacturing base and a key growth market,” adds Gupta. “It positions us to deliver robust, reliable vehicles that meet the needs of South African customers while supporting local industry.”
Sachin Arolkar, head of international operations for Mahindra & Mahindra, describes South Africa as “a cornerstone market in Mahindra’s international growth strategy,” with the new plant enhancing both local service and regional manufacturing capability.
Since starting local assembly in 2018, Mahindra has grown into a top 10 best-selling brand in South Africa. According to Naamsa, the automotive business council, it is among the three fastest-growing brands over the past seven years, and the fastest-growing brand in the 2024/25 financial year and the 2025 calendar year to date.
Dr Dempsey Naidoo, chairman of AIH Logistics, Mahindra’s local assembly partner, says the project represents “the largest semi knocked-down automotive facility of its kind in South Africa,” showcasing the impact of global–local collaboration in creating jobs, developing skills, and advancing the country’s manufacturing sector.
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