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Japanese automaker Isuzu Motors plans to make India its hub for sports utility vehicles and light commercial vehicles in South Asia after commissioning its plant in Andhra Pradesh by 2015-16.
Till then, the company expects modest volumes of 6,000 units a year due to capacity constraints at its contract manufacturing facility in Chennai, owned by Hindustan Motors Ltd.
“The company is in the process of investing Rs 3,000 crore in the plant at Sri City, Andhra Pradesh, with an initial capacity of 50,000 units. This will be ramped up to 80,000 and eventually to 1,20,000 units a year,” said Takashi Kikuchi, President and MD, Isuzu Motors India.
“Once this gets commissioned, we will be able to utilise the manufacturing facility to serve as a regional hub.”
Speaking after commencing delivery of the India-made MU-7 SUV, a Toyota Fortuner competitor, Kikuchi said no target has been set for the model due to capacity constraints.
The company will be able to make about 6,000 vehicles a year initially.
“This does not allow us to have a pan-India presence. Therefore, we will be focussing on South Indian cities. Once the new facility is ready by 2015-16, we will go pan-India and also serve the regional markets. By then, the localisation will go up,” the MD said.
Isuzu expects the number of its dealers in India to cross 100 by 2016, he added.
At present, the company is assembling the MU-7 SUV and the pick-up truck D-max at the Chennai plant.
Japan PM visit Isuzu Motors will begin work on the plant in Sri City, Andhra Pradesh, on January 27.
The top management of the Japanese company will be here to inaugurate the facility, Kikuchi told Business Line .
The company is expecting Japanese Premier Shinzo Abe, who will be the special guest on the Republic Day (January 26), to visit the plant, he said.
The touring Isuzu delegation will be at the plant for the inauguration.
Asked if the company would consider buying out the Hindustan Motors plant in Chennai, with which it has a contract manufacturing agreement, Kikuchi said the focus is on executing the new plant.
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