Mahindra eyes South Africa expansion

Mahindra & Mahindra is at an advanced stage of assessing plans to upgrade its South African plant, according to people familiar with the matter, as India’s second-largest automaker looks to capitalise on rising demand for affordable vehicles.

The company has been working with the state-owned Industrial Development Corp to assess the feasibility of setting up completely knocked-down, or CKD, production at its facility near the port city of Durban, the people said, asking not to be identified because the discussions are private.

Mahindra already assembles semi-knocked down vehicles at the plant.

The growth in South Africa’s mid-market segment has lured Chinese and Indian rivals that have eaten into the market share of companies, including Ford Motor and Mercedes-Benz Group AG.

Expanded local facilities may allow Mahindra to sidestep potential import tariffs being weighed by President Cyril Ramaphosa’s government to spur domestic auto manufacturing — the largest component of the nation’s