Indian multinational car manufacturer Mahindra today launched a new R95-million vehicle assembly plant in the Dube Trade Port Special Economic Zone.
The facility will produce Mahindra’s “Pik-Up” range of single and double-cab bakkies and at full capacity will be able to produce 4 000 vehicles a year, according to KwaZulu Natal MEC for Economic Development and Environmental Affairs, Sihle Zikalala.
He said that the manufacturer’s long-term development strategy included using this new facility to supply new vehicles to the entire African market. Mahindra had committed to sourcing 40% of its components – in terms of value – from local suppliers, he added.
“The assembly of the Pik Up is a very important step, but it remains only the first step in our long-term plan that will see us increase employment, local sourcing, and content and the complexity of our assembly facility in KwaZulu Natal,” said Mahindra South Africa CEO, Rajesh Gupta.
He pointed out that the plant’s 24 local staff complement, of which 80% had been previously unemployed, had been trained in partnership with AIH Logistics who will be operating the vehicle assembly plant with Mahindra.
“Training and skill development is going to be a special focus area going forward,” said AIH Logistics chairman, Dempsy Naidoo. “We believe in the fact that to ensure the best of engineering and quality, we will have to keep investing in nurturing a highly skilled workforce here at South Africa.”
