Isuzu Motors plans to set up engine facility in India

This, soon after performing a grand ceremony for a Rs 3,000-cr plant in Andhra Pradesh

The Japanese auto major Isuzu Motors, which performed a grand ceremony for the Rs 3,000-crore plant at Sri City SEZ, Andhra Pradesh today, is now planning to set up an engine facility in India.

Speaking at the sidelines of the pooja ceremony, which was performed at Sri City SEZ on the borders of Tamil Nadu and Andhra Pradesh, Isuzu India's President and Managing Director Takashi Kikuchi said "going forward we are also looking at setting up an engine facility, whether it will be inside Sri City is yet to be decided".

However company officials said Isuzu already started discussions with Sri City for the proposed engine facility. "It will make sense to set up engine facility inside the SEZ."

So far the company has been importing engines from Thailand.

Kikuchi added, company's manufacturing facility inside Sri City will go on stream 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.

He said the company will commence its greenfield facility with a localisation of 70 per cent and will be increased to 100 per cent in three years, starting from 2016.  

Isuzu, one of the oldest Japanese auto majors, had set up its subsidiary in India in 2012. The company started its Indian operations by bringing in limited volumes of completely built units.

The next phase was assembly of CKD units in contract manufacturing.

It may be noted, the company tied up with Hindustan Motors for contract manufacturing. The company uses Hindustan Motors Tiruvalluvur facility near Chennai to assemble MPV range of vehicles.

"We have an agreement to produce 5000 units from HMIL's facility," said Kikuchi.

So far the company got two products and soon it would bring more products and the focus would be LCV and utility vehicles, which the company specialised in, he added.

India is a key region in Isuzu's global growth strategy for its emerging markets and as an important manufacturing hub in the future.

"Our focus is to acclerate our business and establish Isuzu as an important player in the pickup trucks and utility vehiches in India," said Kikuchi.