India-headquartered vehicle manufacturer Mahindra has launched its new R70-million Mahindra Pik Up local assembly plant at the Dube TradePort Special Economic Zone (SEZ), in KwaZulu-Natal, on August 12.

Located close to Mahindra’s original 2018 assembly site, the new facility is a fully equipped semi-knocked-down assembly plant with a semi-automated line and bonded warehouse.

The plant is ISO 9000-accredited and includes an advanced IT-driven production and warehouse management system for streamlined operations.

“Our original facility played a pivotal role in establishing our local footprint.

“As demand for our locally assembled Pik Up range continued to rise, we needed a facility with the scale, flexibility and technology to meet future growth while maintaining world-class quality,” said Mahindra South Africa CEO Rajesh Gupta in a media release.

The Durban facility has the capacity to assemble over 1 000 Pik Up single- and double-cab models a month, with the ability to scale further as demand grows. It also offers the flexibility to accommodate new models that Mahindra plans to introduce in the coming years, alongside an increasing level of locally sourced components.

Earlier this year, Mahindra partnered with the Industrial Development Corporation to launch a feasibility study into building a full-scale manufacturing plant in the country.

Mahindra noted in a media release that the insights from operations at the new Durban facility would play an important role in shaping up the study.

“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,” said AIH Logistics chairperson Dr Dempsey Naidoo during the inauguration.

AIH Logistics is Mahindra's local assembly partner.

“This event marks a new chapter in local manufacturing, particularly in the automotive sector. This milestone also reflects Mahindra’s long-term commitment to Durban,” added eThekwini mayor Cyril Xaba.

“It is also a vote of confidence to our government that indeed we are succeeding in creating a conducive environment for investment and business to thrive in Durban and KwaZulu-Natal.

“We are 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,” he continued.

Xaba noted that the plant aligned with the city’s aim of growing the automotive sector, which he described as a key pillar of the economy, as well as a source of jobs and innovation.

He explained that by being near the King Shaka International Airport, the Mahindra plant could receive imported components swiftly through the adjacent Dube cargo terminal and finished vehicles could be exported efficiently through Durban port.

“This connectivity was a major selling point for establishing the assembly [plant] here. It aligns with our goal of integrating logistics and production in one precinct.

“In essence, the aerotropolis provided the launching pad and Mahindra's investment is a rocket taking off from it. As more businesses like Mahindra set up around the airport, we move closer to our vision of a dynamic, diversified economy centred on this logistics gateway”.

“We are humbled and grateful that Mahindra has chosen to partner with AIH again. This will not only enhance our localisation plan, but also contribute significantly to job creation, skills transfer [and] economic development in South Africa - all aligned to the main pillars of South Africa's economic benefit and growth,” said Naidoo.