Mahindra South Africa has launched a state-of-the-art assembly plant in the Dube TradePort special economic zone (SEZ), KwaZulu-Natal, marking a significant expansion of its South African operations.
The new 14 000 square meter (sqm) facility, operated in partnership with local firm AIH Logistics, is set to double Mahindra’s investment in the country and enhance production capacity to meet surging demand across Southern Africa.
The launch event highlighted KwaZulu-Natal’s growing appeal as an industrial hub. The province’s MEC for Economic Development, Tourism and Environmental Affairs, Musa Zondi, emphasised the broader economic implications.
“This is about growth, innovation and opportunity, and about KwaZulu-Natal standing tall as a prime destination for industrial investment,” Zondi said.
The partnership between AIH Logistics and Mahindra South Africa began in 2018 with a semi-knockdown (SKD) facility at the Dube TradePort, initially producing 200 vehicles per month.
Operations have since scaled up markedly, now assembling 390 cars monthly and over 28 000 vehicles to date. The companies invested R70 million in expanding the business at the new premises.
The flagship Mahindra Pik Up, including special editions like the Karoo range, has been exported to markets in Botswana, Zimbabwe, Zambia, Eswatini and Namibia, underscoring the facility’s role in regional freight and logistics networks.
“This move to a 14 000 sqm facility in Dube TradeZone 2 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 said.
AIH Group Chairperson Dempsey Naidoo said the company has partnered with Mahindra since 2018 to build the brand’s first world-class SKD automotive facility that stands as the largest of its kind in South Africa.
“This achievement reflects the power of collaboration between global expertise and local capability, creating jobs, developing skills and advancing the country's automotive manufacturing sector,” Naidoo said.
“We are proud to share that planning is already underway for the next milestone: assembly of the Mahindra global pickup right here in Durban within the next two years,” he added.
“We will continue to create real economic value, generate sustainable employment and build excellence in local manufacturing.”
Mahindra South Africa CEO Rajesh Gupta said the plant’s capacity at the new premises has increased from 200 units to 1 500 per month.
“We will be introducing two more models in this SKD facility in the near future over 12 to 15 months,” Gupta said.
The Dube TradePort’s strategic location, linked to the Port of Durban and King Shaka International Airport, facilitates efficient vehicle distribution and supply chain operations.
Zondi said the province is “a gateway” to Southern Africa due to its roads, rail, sea and air connections, which position it as a key regional trade hub.
The local operation grew from 24 employees at inception to 63 by 2023. The workforce is expected to reach 74 with the new facility.
“This expansion is about local manufacturing, job creation throughout the value chain of production and skills development. Each of these jobs represents a household supported, skills uplifted and futures secured,” Zondi said.
Mahindra South Africa holds the highest broad-based black economic empowerment status and is active in local supplier development. It also supports the Department of Trade, Industry and Competition’s industrial policy and the African Association of Automotive Manufacturers’ regional growth strategy.
Additionally, a recent memorandum of understanding between Mahindra and the Industrial Development Corporation explores establishing a completely knocked down vehicle assembly facility.
“As the government of KwaZulu-Natal, we hope your study confirms what we already know: this province offers the people, the infrastructure and the partnerships to make Mahindra’s continued expansion not only possible but profitable,” Zondi said.
“Today’s milestone reminds us of what can be achieved when the public and private sectors work hand in hand. AIH-Mahindra’s story is a blueprint for industrial growth, skills development and market expansion.”
