Isuzu To Set Up Production Facility In India

Updated: Monday, March 18, 2013, 10:54 [IST]

Isuzu, the commercial vehicle and large SUV maker from Tokyo, Japan entered the Indian market comparatively late, but its large, full sized SUVs and commercial vehicles are in demand in the country, which compete against other Japanese models such as the Toyota Fortuner and Mitsubishi Pajero.

Isuzu started taking bookings for its MU-7 full sized SUV and the D-Max truck last month, which are imported as completely built-up units from its Thailand plant. But after the announcement of tax hike late last month, Isuzu, like many other international brands has decided to start local production to cut down on prices.

The Japanese automaker has announced that it will begin selling locally built commercial and SUV models from 2016. Towards this end the company will set up a manufacturing facility in Sri, Chittoor, Andhra Pradesh at a total investment of Rs. 1,500 crore.

While the manufacturing facility takes shape Isuzu is looking to team up with local firms, including Hindustan Motors, to start assembling models locally. Remember that taxes have only been increased for products that are imported as completely built up units (CBU) and not for complete knock down kits (CKD), which are imported parts that are assembled locally.

Isuzu aims to sell 80,000 vehicles in India and export 40,000 units that are produced in its Indian plant.