Isuzu Motors India has opened a large manufacturing plant in Sricity, Andhra Pradesh, to expand its business in the country and to tap markets in the country's neighbourhood.
The Japanese company, which specialises in making commercial and adventure utility vehicles, has invested Rs 3,000 crore in the facility and associated businesses.
Andhra Pradesh Chief Minister N. Chandrababu Naidu inaugurated Isuzu's plant on Wednesday (April 27). Naidu also unveiled the company's made in India D-Max pick-up truck.
Isuzu Motors India Managing Director Naohiro Yamaguchi said initial production capacity of the plant is 50,000 units per annum and would be scaled up to 120,000 units eventually.
"In the next two to three years we have to open up new markets. We hope that we can reach 50,000-mark in the next three years. We cannot exactly say when we are going to reach 120,000 units. We are still in the start-up phase," Yamaguchi said.
The plant, covering an area 107 acres, is expected to generate between 2,000 and 3,000 jobs.
"India is one of the fastest growing economies of the world and also one of the biggest automobile markets. We see a great demand for our products. This facility will not only cater to the needs of the Indian market but will also be a key manufacturing centre for Isuzu's global operations," said Masanori Katayama, president of Isuzu Motors Limited.
Isuzu has kept product localisation at 70 per cent, and plans to increase it in the future.
The company has 26 dealerships across the country and plans to expand its network.
The plant will roll out D-Max utility pick-up in three configurations for the commercial segment - Single Cab 4x2, Single Cab 4x4 and Crew Cab. There will also be a variant called D-Max V-Cross for personal registration and use. However it’s premium SUV MU-7 will be imported for domestic market.
BW Reporters
The author is Senior Correspondent with BW Businessworld
