Mahindra's new vehicle assembly plant set to boost KZN's economy

Mahindra South Africa yesterday officially commissioned a new vehicle assembly plant at Dube TradePort’s Industrial Zone 2, more than doubling its production capacity and reinforcing its long-term commitment to KwaZulu-Natal and South Africa’s automotive sector.

The multi-million-rand facility will increase Mahindra’s one-shift production of its Pik Up models from under 500 units to more than 1 000 units per month. The move from its original retrofitted warehouse in Dube TradePort to a purpose-built 14 000m² plant marks a significant expansion for the Indian vehicle manufacturer, which first established an assembly operation in Durban in 2018.

Mahindra South Africa CEO Rajesh Gupta said the new facility represents the company’s enduring commitment to the country. “We are here to stay, no matter how difficult the journey is. Over the last two decades, we have faced challenges, but every time we came back stronger because we invested in partnerships and in delivering the best value proposition to our customers,” he said.

“This is an occasion where I speak not only on behalf of Mahindra, but also on behalf of every single person who has played a role in building this partnership. We are here because of you; that’s what we call Ubuntu,” Gupta said.

EThekwini mayor Cyril Xaba described the investment as “a vote of confidence” in the city, saying that it was succeeding in creating a conducive environment for investment and business to thrive in Durban and KwaZulu-Natal.

“Today, we’re not just opening a factory. We are celebrating a significant investment in our community, a solid partnership between the public and private sectors, and a step forward for our automotive industry.”

Xaba said the plant’s state-of-the-art technology will enable complete nuts-and-bolts assembly of vehicles, making Durban a hub for automotive manufacturing. We expect new models, and possibly even next-generation vehicles, to be built right here in Durban.

He added that Mahindra’s expansion “aligns perfectly with our plans of growing the automotive sector” and said the City’s 1 000-hectare KZN Automotive Supplier Park, currently being developed in Illovo, would work in tandem with Mahindra’s presence in the north to make eThekwini “the automotive capital of Africa.”

KZN MEC for Economic Development, Tourism and Environmental Affairs Musa Zondi said the facility “marks a new chapter of growth in their story of developing vehicles for Africa within KwaZulu-Natal, a chapter that will see Mahindra double its investment in South Africa and increase its capacity to meet growing demand.”

Zondi highlighted the employment impact, noting that it “has already grown from 24 employees at its inception to 63 by 2023, with numbers expected to reach 74 in the new facility. Each of these jobs represents a household supported, skills uplifted, and futures secured.”

He also pointed to the brand’s transformation credentials: “It is about industrial transformation with a level 2 B-BBEE status, active local supplier development, and alignment with the Department of Trade, Industry, and Competition's industrial policy, as well as the African Association of Automotive Manufacturers’ Strategy for Original Growth.”

Dr Dempsey Naidoo, chairperson of the AIH Group, which is Mahindra’s local assembly partner, said the new facility “stands as the largest of its kind in South Africa.”

He said it reflects “the power of collaboration between global expertise and local capability, creating jobs, developing skills and advancing the country’s automotive manufacturing sector.”

“This will not only enhance our localisation plan, but also contribute significantly to job creation, skills transfer and economic development in South Africa... Today’s event is the launchpad for our next big leap, with planning already underway for the assembly of Mahindra’s Global Pik Up right here in Durban.”

Mahindra ranks third in South Africa’s single cab bakkie segment, but Gupta said: “We have bigger ideas. This plant is going to fuel that growth journey.”

In addition to manufacturing, Gupta said the company’s recent investment in a new parts warehouse demonstrated its commitment to after-sales service. “It’s about offering the fastest possible turnaround time and delivering parts within 24 hours,” he said.

Zondi said the province would continue to work with investors to create “a predictable, competitive and supportive environment... because we understand that creating an enabling environment actually allows businesses to succeed.”

THE MERCURY