Despite being one of the late entrants in the Indian market, Japanese auto maker Isuzu Motors is betting big on its India operations.
The company on Tuesday said it is looking to invest Rs 3,000 crore in its new factory in Sri City, Hyderabad, which is likely to be operational by 2015-16.
Isuzu also launched its first India-manufactured, BS4 compliant MU-7 SUV at a price of Rs 22.3 lakh (ex-showroom, Chennai).
The company, known for its commercial vehicles and sports utility vehicles (SUVs), would focus on SUV and pick-up segments in India.
It currently assembles its vehicles at Hindustan Motors plant at Thiruvallur, Chennai, under a contract manufacturing agreement for assembling MU-7 and D-Max pick-up truck. The plant has a capacity of manufacturing 5,000 units per year.
According to Isuzu, the Sri City facility will initially have a capacity of manufacturing 50,000 units per year, which will eventually be increased to 1 lakh units in the three years after the start of the plant in 2015-16.
The company plans to have a localisation of 70% at its new facility, which will rise to 100% over the period. It indicated that exports will be one of the key strategies for India operations.
“We believe India has a potential for becoming an export hub for Isuzu. Our target from India would be neighbouring countries, South Asia and Africa,” said Takashi Kikuchi, managing director, Isuzu Motors India.
“Currently, we export 60% of our production from Japan. When we start in India, our initial focus will be on the local market and gradually on exports,” he said.
Starting with eight dealerships in the southern region, Isuzu plans to add 60 dealerships across India by 2015-16. It did not divulge details on company’s future product plans for the Indian market.
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