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Old 12th August 2013, 14:24   #1
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Default Mahindra mulls assembly facility at Ghana

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Africa seems to figure in every automaker's plans as the continent's rapidly expanding middle classes have begun spending more on automotive purchases. Indian car and utility vehicle Mahindra &Mahindra, which already has a presence in Africa in terms of sales and service of its vehicles, is said to be mulling an assembly facility at Ghana, an African nation well known for its Cocoa production and abundant mineral wealth.

Mahindra mulls assembly facility at Ghana-mahindra-scorpio-suv.jpg

Note: The Mahindra Scorpio image used in this report is illustrative in nature.

Mahindra could situate its assembly plant, along with a service center, on a 9.5 acre facility. According to the EconomicTimes, Mahindra has sold 3,500 vehicles in 7 years of operations in Ghana. This numbers seem interesting as Mahindra, which has sold over 18,000 vehicles, in its 9 year existence at South Africa, is yet to set up an assembly unit in that country.

Therefore, an assembly facility at Ghana, a country in which Mahindra sells significantly lesser vehicles when compared to South Africa, comes as a surprising development. Mahindra already has an assembly unit at Egypt, where it builds the Scorpio SUV for African markets. In case the Mahindra assembly unit at Ghana does come up shortly, the facility will represent the automaker's second such factory in Africa.

The assembly unit could also service other African markets given the fact that Mahindra sells vehicles in 25 countries of that continent. Mahindra's Ghanaian assembly plant will be a joint venture with the automaker's existing distributor in that country, Svani Motors. The unit is said to come up at Accra, the capital city of Ghana.

Africa plays home to many Indian automakers's assembly units. Two wheeler makers such as Hero MotoCorp and TVS Motors have CKD assembly facilities in Africa while Bajaj Auto sells completely built motorcycles in the continent. Tata Motors assembles commercial vehicles in South Africa and Maruti Suzuki is said to be considering an assembly facility in the same country in the next 3-5 years.

Last edited by JayPrashanth : 12th August 2013 at 14:26. Reason: News Link Added
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