Indian automakers ramp up production in South Africa
Indian carmakers are preparing to expand operations in South Africa by converting assembly plants into full manufacturing facilities and building new factories. South African Trade, Industry and Competition Minister Parks Tau said Indian and Chinese firms have shown interest in larger investments as the government works to strengthen its struggling auto sector. The country faces pressure from reduced exports, U.S. tariffs and potential European Union restrictions on combustion engines.
Companies operating semi-knocked-down assembly lines have pledged to shift toward complete-knocked-down production for full local manufacturing. Mahindra plans to upgrade its South African operations and explore electric vehicle assembly in Durban with government backing. Tata Motors will re-enter the African market through a partnership with Motus Holdings Limited, South Africa’s biggest passenger vehicle retailer, after stopping exports in 2017.
