[JayPrashanth]

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Earlier this year, Japanese utility vehicle (UV) major Isuzu, made a foray into India by launching two products: the D-Max pick up truck and the MU-7 SUV. While both these products are sold in India through two dealerships, at Coimbatore and Hyderabad, and are imported from Thailand through the completely built unit (CBU) route, the Japanese UV maker will soon commence assembly operations.



Hindustan Motors's Tiruvallur factory will assemble Isuzu D-Max pick up trucks and MU-7 SUVs through the completely knocked down (CKD) kit route from the end of this year. Isuzu, for its part, is taking a long term view of the Indian car and utility vehicle market, and is setting up a greenfield manufacturing facility at Sri City, Andhra Pradesh. The factory is capable of producing 120,000 vehicles per annum. Strategically situated 70 Kms from Chennai, Isuzu's upcoming factory at Sri City is close to the Ennore port.

The factory, located at the Tamil Nadu-Andhra Pradesh border is expected to use Tamil Nadu's well developed automotive supplier network to aggressively localize Isuzu UVs. With a targeted start-of-production in 2016, Isuzu plans to localize 70% of its vehicles right from the outset. Eventually, the plan is to take localization levels close to the 100% mark. Here's official word from Mr Takashi Kikuchi, President - Isuzu Motors India, as reported by AutocarPro,

We have started discussions with Indian component manufacturers and are very satisfied with the quality of their products and processes. After seeing the capabilities of Indian suppliers, we are confident that we will be able to take the localisation content to almost 100 percent in a short period of time from start of operations.

Such heavy localization levels bring forth a multitude of benefits. One: Car makers can price their products competitively. Two: Prices of spare parts will also be competitive, leading to lower longer-term ownership and running costs, key factors that influence purchase decisions, especially in the commercial vehicle market. Three: The automaker will be hedged from currency fluctuations. For instance, the depreciating Indian Rupee has led to many car makers in India increasing car prices.

The two Isuzu vehicles to be built at the Japanese UV maker's Sri City factory is the D-Max pick up truck and MU-7 SUV. Both vehicles will be powered by turbo diesel engines. The D-Max pick up truck is available in single cab and crew cab variants while the MU-7 SUV is a 7 seat luxury SUV sitting in the segment populated by the likes of the Toyota Fortuner and the Mitsubishi Pajero Sport. Isuzu plans to expand its dealership range across India in the coming days.

The automaker's third dealership is coming up at Chennai. Isuzu's association with India goes back a long way. The Japanese automaker has been an engine supplier to Hindustan Motors. Also, Isuzu had a joint venture with Hindustan Motors in the 1980s, through which it built F-Series trucks. Isuzu has also collaborated with Swaraj Mazda Limited, through which it builds trucks and buses for the Indian commercial vehicle market.

[Aditya]

Isuzu Motors India Private Limited held the ground breaking ceremony for its new manufacturing facility at Hyderabad. The plant, which is to be set up on 107 acres of land, is expected be operational by 2016.

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[Aditya]

Isuzu Motors has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to facilitate investment by its suppliers in the state of Andhra Pradesh under the Automobile and Auto Component policy 2015 - 20. The company is setting up its manufacturing plant at Sri City in the state.



At the launch of Industrial Mission programme at Vishakapatnam, 7 auto component companies nominated by Isuzu Motors India, have signed a MoU with the state government. As per the policy, the auto component companies will receive various incentives and concessions from the state government for promoting automotive manufacturing in Andhra Pradesh.

These auto component companies will explore possibilities of appropriate investments in the state in order to cater to the future requirements of the OEMs who will set up their manufacturing facilities in the region.

Isuzu is also in the process of tying-up with various component manufacturers across India. The company plans to achieve 100 per cent localisation for its products to be manufactured from its upcoming plant in Sri City.

Isuzu began construction of its proposed manufacturing plant site in Sri City, Chitoor District, Andhra Pradesh, in June 2014. The company had acquired 107 acres of land in 2013 after signing a MoU with the Andhra Pradesh State Government. This new facility is likely to commence commercial operations by early 2016, with the initial production capacity at 50,000 units per year. Isuzu is aiming to scale up the production capacity to 1,20,000 units per year, with the accumulated investment of Rs. 3,000 crore.

[Aditya]

Isuzu has started the process of moving production from the Hindustan Motors plant in Tiruvallur, Chennai to its own facility at Sri City, AP. The company has stopped rolling out vehicles from the Chennai facility from December 2015.

Isuzu had been using the Hindustan Motors plant to assemble the MU-7 SUV and D-Max pickup truck. While the new plant isn't expected to start producing vehicles before April 2016, the company believes it has enough vehicles in stock to meet the demand till then.

Isuzu has invested Rs. 3,000 crore in the new plant. Initially, the facility will have an annual production capacity of 50,000 units. This number can be expanded to 1.2 lakh units.

It has also formed 'Isuzu Engineering Business Centre India Private Limited', a new company that will be responsible for R&D and sourcing related activities. This company is expected to help Isuzu achieve 70% localisation at the start of production and 100% localisation in the future.

Source: ET Auto