Indian automaker looks at local assembly

The cost of shipping in completely assembled motor vehicle imports has persuaded the big Indian auto-maker, Mahindra and Mahindra, to look at local assembly from early next year, according to Ashok Thakur, the new CE of Mahindra SA. Currently, the cost of shipping a container with three completely built-up (CBU) Mahindra vehicles from India to SA is about US$1 000, and US$1 500 to West Africa. And, according to Thakur, 95% of parts for Mahindra vehicles sold in SA are already either distributed or manufactured locally – so local assembly fits the scene. The company is focusing on using a local OEM (original equipment manufacturer). “There has always been extra capacity available,” Thakur said.