(MENAFN- KNN India) New Delhi, Oct 27 (KNN) India's automobile industry is expanding its presence in South Africa, with several automakers planning to upgrade existing assembly lines into full-scale manufacturing units and set up new plants.

This move is part of a broader effort to boost local production and exports.

According to News South Africa, the initiative aligns with South Africa's renewed push to attract global automakers and revive its automobile sector.

Minister of Trade, Industry and Competition Parks Tau confirmed that both Indian and Chinese automakers have shown keen interest in expanding their investments in the country.

Tau has been holding talks with various automakers as part of the government's strategy to revive the struggling local auto industry, which faces declining export demand, tough competition from cheaper imports, and ongoing infrastructure issues.

The situation worsened after the United States imposed tariffs and the European Union proposed a ban on internal combustion engine (ICE) vehicles, threatening South Africa's export potential.

To address these challenges, the government is encouraging investment in new energy vehicles (NEVs) and electric mobility. Tau stated that Indian and Chinese investors are exploring partnerships with local companies to make better use of existing production capacity and build new factories.

Firms currently using the semi-knocked-down (SKD) assembly model are expected to shift toward complete-knocked-down (CKD) manufacturing for full-scale local production.

Mahindra & Mahindra has announced plans to upgrade from SKD to CKD operations to strengthen local manufacturing and develop South Africa as a regional export hub. It is also exploring electric vehicle (EV) assembly in Durban, supported by the government's clean mobility policies.

Meanwhile, Tata Motors is re-entering the African market through a partnership with Motus Holdings Limited, aiming to expand its distribution network.

(KNN Bureau)

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