Indian automakers are gearing up to strengthen their footprint in South Africa as several leading manufacturers plan to upgrade their existing assembly operations into full-fledged production units and establish new manufacturing plants.
According to News South Africa, the move aligns with South Africa’s renewed efforts to attract global automakers and revitalize its struggling automotive sector.
Trade, Industry and Competition Minister Parks Tau confirmed that both Indian and Chinese automakers have shown strong interest in expanding their investments in the country.
Tau has been holding talks with international carmakers as part of a broader strategy to revive the local auto industry, which has been hit by falling export demand, increased competition from low-cost imports, and persistent infrastructure challenges.
The sector has faced mounting pressure since the United States imposed tariffs, while the European Union’s proposed ban on internal combustion engine vehicles has further strained export prospects.
The South African government is pivoting towards new energy vehicles (NEVs) and encouraging investment in electric mobility. Tau noted that Indian and Chinese automakers are keen to collaborate with local firms, make use of underutilized production capacity, and build new factories.
Several companies currently operating under semi-knocked-down (SKD) models have pledged to transition to complete-knocked-down (CKD) production, enabling full-scale local manufacturing.
Discussions are also underway with major global automakers such as Toyota and Ford to address concerns over declining output, tariff uncertainty, and the costly shift to electric vehicle technology.
Among Indian companies, Mahindra has confirmed plans to upgrade its South African operations from SKD to CKD, positioning the country as a regional hub for automotive exports.
The company is also exploring the establishment of electric vehicle assembly facilities in Durban, supported by government incentives aimed at developing a robust manufacturing base.
Meanwhile, Tata Motors is re-entering the African market after halting exports in 2017, partnering with Motus Holdings Limited, South Africa’s largest passenger vehicle retailer, to distribute its vehicles across the region.
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