Mahindra Expands Capacity in South Africa Amid Growing Demand for Budget Cars

The growth in the mid-market automotive sector has attracted significant interest, prompting Tata Motors Ltd., the largest automobile manufacturer in India by sales, to partner with Motus Holdings Ltd. This collaboration aims to distribute Tata’s vehicles in South Africa, as noted by a local car retailer.

Another major player, Stellantis NV, known for brands like Alfa Romeo and Jeep, is also establishing a facility in South Africa focused on producing pick-up trucks.

Mercedes-Benz, which manufactured 70,000 vehicles at its East London plant last year—approximately 650 kilometers (404 miles) south of Durban—has made some tough decisions. The company reduced its workforce by cutting a shift, resulting in the layoff of 700 employees last year, a move made even before the impact of tariffs affected demand in the U.S.

Mahindra, which owns Automobili Pininfarina, known for its luxury electric hypercars priced at €2.2 million ($2.4 million), is also planning to introduce electric vehicles (EVs) to the South African market. According to Gupta, the company is eager to bring these vehicles to consumers in South Africa soon, although no specific timeline was given. They plan to offer both the BE 6 and XEV 9e EV models to local buyers.

Additionally, the Mumbai-based firm is contemplating enhancements to its assembly plant, aiming to transition from a semi-knocked down assembly line to one that utilizes completely-knocked down parts, as noted by Gupta. This expansion is expected to generate around 100 direct job opportunities.