Global manufacturer of light commercial vehicles (lCVs) and sports utility vehicles (SUVs) Isuzu Motors of Japan has earmarked a total investment of Rs 3,000 crore for a new plant at Sri City in Andhra Pradesh, which would have a capacity of one lakh to two lakh units per annum once it becomes fully operational in 2016.
Business Bureau Chief of The Pioneer Rakesh Bihari Jha, who travelled to Chennai to attend the company's press conference, reported that Isuzu Motors while announcing the local production of its vehicles, also rolled out its first India manufactured BS4 compliant SUV MU-7 in the price range of Rs22 lakh to Rs22.3 lakh ex-showroom Chennai.
The diesel-engine vehicle is one of the longest SUVs available in India with a 3-metre wheel base makes.
Isuzu has tied up with Hindustan Motors ltd (HM) for contract manufacturing of its products namely - MU-7 and soon to be manufactured pick-up truck, D-Max at its Thiruvallur, Chennai plant.
Talking about their market plan, Isuzu Motors India Managing Director Takashi Kikuchi said, "we have been supplying diesel engines to HM and they have agreed to contract manufacture our SUV MU-7. We hope to sell 5,000 units of our SUVs in the next one year. Though this is lesser compared to the demand in India, we are just starting right now."
Once the Sri City plant is fully operational, they will be producing other lCVs from there and it will emerge as a hub for the company for export to neighbouring countries and African nations. "India has a great potential in SUV and lCV segments and after satisfying domestic demands we will export to other countries also. In fact, India will emerge as an export hub for emerging countries in time to come," added Kikuchi.
The company is expanding its dealer network also and they have appointed 8 dealers already in the South Indian cities while one dealer each in Delhi and Mumbai will be appointed in the first quarter of the next fiscal. "We will have over 60 dealers pan India in the next two years so that there is no problem for our customers," informed Kikuchi.