Isuzu to set up manufacturing plant in Sri City

Isuzu to manufacture cars from Sri City by 2016

Express News Service

Chennai:  Japanese auto-maker Isuzu Motors is planning to strengthen its base in South India by setting up its own car plant in 107 acres of land in Sri City to produce light commercial vehicles and sports utility vehicles.

Addressing reporters after rolling out first India-manufactured sports utility vehicle MU-7 here, Isuzu Motors India President and Managing Director Takashi Kikuchi said that Isuzu would invest Rs 3,000 crore in the plant in Sri City near Chennai which is expected to become operational by 2016.

Talking about Isuzu’s link with India, he said that the company had been supplying its diesel engines to the Ambassador brand of cars which owned by Hindustan Motors Ltd. Interestingy, Isuzu has a tie up with Hindustan Motors to roll out the its first assembled sports utility vehicle 'MU-7' from Thiruvallur plant near Chennai.

 Kikuchi said the company would continue to contract manufacture MU-7 from the Thiruvallur plant despite Isuzu setting up its own plant at Sri City.

He said the plant at Sri City would have a capacity to manufacture 50,000 vehicles and after three years it would manufacture 100,000 vehicles which could also be exported.

He also said the company plans to increase the level of localisation of MU-7 to 70 per cent when its own plant in Sri City becomes operational in 2016. After three years we are looking at 100 per cent localisation, he said.

He also said that the company would have eight outlets in the south and by end of 2016 it plans to expand it to 60.

Kikuchi said the locally manufactured MU-7 is priced at Rs 22.3 lakh (ex-showroom Chennai) for BS-IV variant and Rs 22 lakh (ex-showroom Chennai) for the BS-III variant. It is available in silver and black colours, he added.