Japanese commercial vehicle and SUV major Isuzu will set up a manufacturing plant at Sri City in Andhra Pradesh's Chittur district, at a total investment of Rs. 1,500 crore.
The carmaker will start production of its MU-7 SUV and D-Max pick up by the beginning of 2016. It is currently importing fully built models from its Thailand plant and has already started sales operations in Hyderabad and Coimbatore. Isuzu is also in discussion with potential partners, including Hindustan Motors, to start CKD assembly of the models before it starts local production in its own plant.
Though a relatively late entrant here, Isuzu is bullish about its prospects in the Indian LCV and SUV markets. "We feel in the next ten years the Indian market will grow strongly," says Shigeru Wakabayashi, deputy MD, Isuzu Motors India. Its goal is to sell 80,000 vehicles in India and export 40,000 units annually.