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 are 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. 

Maruti Suzuki will roll out a brand new LCV (codenamed Y9T) from its Gujarat plant which will become operational in 2016, reports the Economic Times.

This was communicated to its vendors in Malaysia last week.

The new LCV will also come with a new 2 cylinder 800 cc Diesel engine, now in an advanced stage of development.

Offering an LCV option will help Maruti target the lucrative (and profitable) commercial sector that is dominated by Tata and Mahindra. The LCV is a ground up design that is being developed entirely in India.

Of particular importance is the new diesel engine being developed by Maruti Suzuki.

The LCV will feature a naturally-aspirated version of the 800cc 2 cylinder Diesel, while a turbocharged variant will be offered on Maruti's budget hatchbacks.

Mahindra & Mahindra has launched its new Bolero Maxi Truck Plus pickup at a price of Rs 4.33 Lakh for the BS3 version (ex-Thane) and Rs 4.43 Lakh for the BS4 version (ex-showroom Mumbai, excluding Octroi).

The new vehicle is based on Mahindra's Bolero Pickup and comes with a 5 speed transmission and front disc brakes. 

The BMT Plus can carry an extra payload of 150 kg and has a 300 mm longer and 90 mm wider cargo body, compared to the existing Bolero Maxi Truck. The additional carrying capacity is complemented by a 1 BHP and 12.5 Nm rise in output from the engine.

Highlights of the Bolero Maxi Truck Plus :

• 2523 cc 4-cylinder Common Rail engine
• 63 BHP, 195 Nm of torque & BS4 compliant
• Turning Radius of 5.5 meters
• Power Steering (optional)
• Larger 40.6 Sq ft (3.7 sq.mt.) cargo box
• Payload capacity of 1150 kg
• Rigid Leaf-spring front suspension
• 15" rims with 195/80 sized tyres
• Digital Immobilizer
• Warranty for 1 year / unlimited km

Mahindra & Mahindra has knocked Ashok Leyland (ALL) from 2nd position to become India's second largest commercial vehicle manufacturer, behind Tata Motors.

ALL had been affected heavily by the economic slowdown that hit sales of its medium & heavy commercial vehicle offerings. 

According to SIAM production data for April-February 2013, sales of Medium & Heavy Commercial Vehicles (M & HCVs) declined by 22.79%. Sales further declined by an alarming 34.72% over the month of February 2012.

M&M, on the other hand, has benefited from surging sales in its load carrying and passenger offerings as segment sales of Light Commercial Vehicles and passenger carriers grew at 14.53% and 8.89 % respectively (between April to February 2013). 

Between April - February 2013, M&M sold a little under 1.68 Lakh units including the Navistar, Maxximo, Gio, Genio and Bolero pickup range. ALL could manage just under 1.31 Lakh units, including 30,592 units of its Dost LCV (designed with JV partner Nissan). M&M has benefited from a lineup that has offerings in HCVs, LCVs, small CVs (3 & 4 wheelers) and pickups. The company has indicated that it will continue to invest in new products and enhancements across its range of offerings. 

Both companies have similar plans though, and feel that the slump in M & HCV sales is temporary. Indeed, analysts expect their sales to recover in the second half of this year. ALL has big plans for its M & HCV offerings and has already launched the new 3718 IL rigid 5 axle 25 tonne truck. It will also launch the Avia range of trucks in India by July 2013. They will roll out from its plant at Pant Nagar in Uttarakhand. 

Isuzu Motors has selected Andhra Pradesh as the manufacturing site for its Indian operations. Isuzu will set up the new manufacturing plant on a 100 acre site at Sri City in Chittoor district of Andhra Pradesh.

The first vehicle manufactured here by Isuzu is scheduled to roll-out by early 2016. Until the new facility is ready, Isuzu will import its present models for India (MU-7 SUV & D-MAX pickups) as CBU’s. These will come from its manufacturing unit in Thailand.

Once the new production facility is complete by 2015, it will serve the Indian market as well as become an export hub for Isuzu. The company has rather ambitious plans to sell 80,000 units in India, with another 40,000 units slated for export once the factory is ready.

The Japanese automaker renowned for their Diesel engines is currently accepting bookings for its MU-7 SUV and D-MAX pickup trucks in South India. The butch looking MU-7 SUV is priced at approximately Rs 24 lakh, while the pickups have been priced at Rs 6.87 lakh (single cab) and Rs 8.07 lakh (double cab), ex-Hyderabad. Isuzu at present has only two showrooms in operation, the first located in Hyderabad and the second in Coimbatore.

Truck sales in India dropped for the fourth straight month on account of the slowdown in the country’s economy and industrial activity. Consequently, heavy vehicle manufacturers have also slashed production in the face of piling inventory with their dealers.

With the entire auto industry facing a crunch, the M&HCV (Medium and Heavy Commercial Vehicles) segment has been particularly hit, with sales down by 17.5% to 71,456 units in July. 

India’s largest commercial vehicle manufacturer Tata Motors saw a decline of 23% in M&HCV sales for the first quarter (April – June 2012) of the current fiscal. Ashok Leyland also recorded a 12.5% fall for the same time period. 

A number of factors have contributed to the downfall in M&HCV sales. India’s economic growth for April-June 2012 is expected to fall below 5%. The national industrial production also contracted to 1.8% for June. Goods movement from agriculture to manufacturing to export-import are on the decline as well, affecting the transportation industry.

The uncertainty has made fleet owners and transport companies unwilling to invest in newer fleets to replace older ones. This despite dealers offering discounts of up to Rs 3.5 lakh and schemes with low interest rates. They also fear for loan delinquency and repossession of their fleets if the freight market does not improve soon. During the 2008 economic slump, more than 50,000 trucks were reportedly repossessed for non-payment of loans.

On the upside, the Light Commercial Vehicles (LCV) segment continues to be one of the fastest growing segments in the country. Tata Motors and Ashok Leyland posted healthy growth in LCVs for the first quarter of this fiscal. As consumer goods movement is expected to grow in the urban areas, the sales of LCVs are expected to post double-digit growth in the current fiscal.