Mahindra:The Fastest Growing Car Brand in South Africa

Written By: Vikas Kaul
Published: April 3, 2025 at 02:57 PMUpdated: April 3, 2025 at 02:57 PM
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Mahindra’s remarkable ascent in South Africa’s automotive market is a testament to its strategic investments, customer-centric vehicle lineup, and expanding local manufacturing footprint. As the country’s new vehicle market grows for the sixth consecutive month—up 12.5% year-on-year in March 2025—Mahindra has surged ahead, achieving an impressive 40% annual sales growth and setting new benchmarks in the competitive landscape.

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Breaking Records in a Competitive Market

March 2025 was a landmark month for Mahindra in South Africa: • 2,253 vehicles sold, marking the first time the brand crossed the 2,000-unit threshold. • 1,256 bakkies [Pick-ups] sold, reinforcing its position as the fourth-largest bakkie retailer. • 1,000 SUVs delivered, including 145 units of the Scorpio-N. • 15,088 total annual sales for FY2024/25, setting a new financial year record.

These achievements have propelled Mahindra to become South Africa’s eighth-largest vehicle manufacturer, just two months after entering the top 10. CEO Rajesh Gupta credits this success to strong organic demand, with over 90% of sales coming from individual buyers rather than fleet purchases.

Why South African Buyers Are Choosing Mahindra

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1. Tailor-Made Bakkies and SUVs

Mahindra has focused on designing and delivering vehicles that resonate with South African consumers:

• Pik Up Bakkies: The Karoo, Dusk, and Storm editions dominate the utility segment, offering robust off-road capabilities and affordability (starting at ~R369,999). These models are locally assembled at the Dube Tradeport in Durban.

• Scorpio-N SUV: With 145 units sold in March 2025 alone, this SUV is rapidly gaining popularity as a family-friendly, competitively priced alternative.

• Expanding Portfolio: The XUV700 and the upcoming XUV 3XO further enhance Mahindra’s appeal across different consumer segments.

2. Expanding Production and Infrastructure

Mahindra’s commitment to South Africa extends beyond just vehicle sales—it includes substantial manufacturing investments:

Facility Location Capacity Key Features Dube Tradeport Assembly Plant KwaZulu-Natal 700 units/month Semi-knocked-down Pik Up production New Manufacturing Hub (June 2025 Completion) KwaZulu-Natal 1,000+ units/month Advanced robotics, CKD capabilities Midrand Distribution Centre Gauteng 2x previous capacity Centralised parts, training, and fitment services

These infrastructure expansions not only boost production but also enhance aftersales service and customer support.

3. Strategic Government Partnerships

Mahindra is aligning with South Africa’s Industrial Development Corporation (IDC) to bolster local automotive manufacturing. Key initiatives include:

• Establishing a fully localised CKD (completely knocked-down) plant. • Exploring electric vehicle component production. • Targeting exports to other African markets.

Mahindra’s Competitive Edge in South Africa

Mahindra’s rapid growth in the South African market is driven by its ability to balance affordability, durability, and local relevance:

Factor Impact on Market Growth

Customised Models Bakkies and SUVs designed specifically for South African terrain and consumer needs. Local Manufacturing Reduces costs and improves availability. Expanding Dealership Network Increased accessibility with 95 dealerships nationwide. Strong Brand Trust 90% of sales from individual buyers indicate consumer confidence.

Mahindra in South Africa

Since entering South Africa in 2004, Mahindra has invested over R1.2 billion in local operations. The brand celebrated the 25,000th locally assembled Pik Up in February 2025 and has expanded its dealership footprint, aiming to challenge industry giants like Toyota and Ford.

CEO Rajesh Gupta describes South Africa as Mahindra’s “second home,” underscoring the company’s long-term vision of deepening its industrial footprint, enhancing local production, and increasing export potential.

With its winning combination of affordable pricing, locally adapted models, and strong infrastructure investments, Mahindra is not just growing in South Africa—it is redefining the country’s automotive landscape for years to come.