IsuzuJapanese-auto major Isuzu Motors is planning to set up an engine plant in India.  The company is yet to finalise on the location for the plant and the amount of investment for the engine facility.Isuzu is globally known for its diesel engines, which is currently used by many global OEMs. It also specialises in the manufacture of LCVs and SUVs.

Speaking on the sidelines of the ground breaking ceremony at Sri City SEZ in Andhra Pradesh, Isuzu India’s President and Managing Director Takashi Kikuchi said, “We are evaluating to setup an engine plant in India, but yet to decide on the location. It will make sense to set up engine facility inside the SEZ, but we have to decide on it. Currently we are importing our engines from Thailand to various companies.”

Isuzu Motors acquired the land in Sri City SEZ in 2013 after it inked a MoU with the Andhra Pradesh government. The new plant is slated to begin operations by 2016 and phase I of the facility can produce 50,000 units and can be expanded to 1.20 lakh units in phase II. The Japanese manufacturer will invest about Rs 3,000 crore in the new facility which is expected to create 2,000 to 3,000 jobs.

According to Kikuchi, the cars that will roll out from the new facility will have up to 70 pecent local content, which will be increased to cent percent in three years, starting from 2016. The company started its Indian operations by bringing in limited volumes of completely built units. However, it has commenced local assembly at Hindustan Motors’ plant in Thiruvallur near Chennai rolled out its first Indian assembled MU-7 SUV couple of months ago. The vehicles are assembled out of the CKD kits received from Thailand. At present it is assembling only the MU-7 SUV. Soon it will commence the assembly of D-Max pick-up truck. (END)

Story: Bhargav TS


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