Mahindra and Mahindra is entering the South African market as part of its growth strategy. The company is setting up a division in the country – Mahindra & Mahindra South Africa Pty Ltd – which will initially import and distribute utility vehicles built-up from India and sell them in South Africa.

With positive market response, the company is considering building an assembly plant to supply both South Africa and other markets on the African continent.

“We will use South Africa as our base to consolidate our position in the rest of the African continent which is part of our strategy to become a global player”, said managing director Anand Mahindra.

South Africa will initially see the Bolero pick-up and Scorpio.

The company has identified Russia, China, Latin America and South Africa as some of the world’s fastest growing markets and has decided also to establish a presence in those countries.

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Low interest rates, tepid inflation and buoyant consumer confidence have pushed vehicle sales in South Africa to record levels.

Mahindra & Mahindra South Africa commissioned a leading market research company to do in-depth studies, including focus group discussions and ‘ride & drive’ events late last year.

The company is currently in the process of finalising dealers, initially in Gauteng, Kwazulu Natal and Western Cape.