Isuzu to set up facility in AP

Japanese automotive major Isuzu Motors India Private Ltd on Friday signed a pact with the AP government to set up a greenfield manufacturing facility with an investment of `1,500 crore.

The proposed unit, coming up at Sri City SEZ abutting the TN-Andhra Pradesh border, which will manufacture Light Commercial Vehicles, will be commissioned over the next two years and will have a production capacity of one lakh units.

“The proposed investment of `1,500 crore will be spread over a period of five to seven years when the peak production touches to one lakh units. This facility will also support as a foothold for our main LCV operations in Thailand,” said Shigeru Wakabayeshi, Deputy MD, Isuzu Motors.

Speaking to media after signing an MoU with the state government, he said that the company was trying to rope in a few Japanese automotive suppliers to set up ancilliary units around the LCV plant.

Of the planned production, which will kickstart in 2015-16, 80% will cater to the domestic market, while the remaining 20% will be exported.

It may be mentioned that Isuzu has started selling its pick up trucks (D-MAX) and pick up derivative (MU-7) this month in India by importing built-up vehicles.

Meanwhile, Isuzu Motors said it was in  talks with Hindustan Motors for contract manufacturing of pick-up trucks till the proposed new facility at Sri City is in place. “We are studying various options. We are in talks with Hindustan Motors but not yet finalised,’’  Shigeru said.