Isuzu signs MoU for start of LCV operations in India
A recent report titled ‘Mega trends shaping the Indian commercial vehicle industry’ conducted by Ernst & Young’s Global Automotive Center threw light on various aspects of the country’s fickle commercial vehicle industry. Interesting to note was the contribution of the LCV segment in particular that so far has managed to keep the commercial vehicle space on an even keel.
That and the likelihood of Global OEMs’ partnering with domestic players to leverage the latter’s understanding of the local market and their distribution network is already taking shape as ISUZU Motors India Private Limited (hereinafter “Isuzu”) has announced the start of its LCV manufacturing operations in India.
By signing an agreement with the Andhra Pradesh State Government, ISUZU has managed to acquire 430 thousand square metres of land located in Sricity in the southern part of the state. The new plant erected here will be the center for Izusu’s full-scale LCV operations in India.
This will allow easier access to Chennai where many automobile related industries are situated and further provide a solid foothold for Isuzu’s main LCV operations in Thailand.
Targeting sales of 100 thousand units annually ISUZU has already begun sales of its pick-up truck (D-MAX) and pick-up derivative (MU-7) from March of this year. The vehicles will be imported as CBUs (completely built up units).
Isuzu plans to expand business in India by developing products that match the market’s needs, while simultaneously also building its sales network starting with the states of Andhra Pradesh and Tamil Nadu, followed by others based on the response to its LCV products.