Friday, March 15, 2013
By Anil Jangid
Isuzu inks deal with AP govt to set up a factory, could use HM plant in the meantime
It is after having tested the ground with the launch of two Isuzu cars that the car maker has finally decided to set up a manufacturing unit in India and soon there will be a lot of Isuzu cars coming to India. Recently the company has launched Isuzu MU-7 SUV and the Isuzu D-Max pick up truck in Hyderabad to test the demand in the country and it is after getting some highly enthusiastic buying from the car makers that the car giant has finally decided to pitch in its tents in India finally and produce cars in the country. As per the information, the car maker has entered into an agreement with Andhra Pradesh government regarding land and there it will be establishing its first factory.
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Further information regarding the deal reveals that the land is located near Sri City and it is here that the car giant is going to set up the manufacturing unit. It is here that Isuzu will be producing utility vehicles and pick up trucks for Indian as well as export destinations. The site has been strategically chosen as it is very near to the Chennai port. Indian market though is undergoing a rough phase but it is expected to improve very fast and sensing this Isuzu has given a go ahead to its India plans.
In addition to this, Isuzu is also in talks with Hindustan Ambassador and could share the production line at the Tiruvallur factory to produce MU-7 SUV and D Max truck. The completely knocked down kits of these will be imported and it will be assembled at the HM factory till the time the car maker come up with its own plant. Currently these two cars are imported as completely built unit form and are attracting higher duties and thus are priced higher. Still the demand for these is reportedly encouraging and the car maker feels that it will be able to sell these in large numbers once it starts producing these in India. This way the car maker will be able to position the MU-7 against Toyota Fortuner and Ssangyong Rexton in a better way while the D Max will be positioned well against Tata Xenon XT.
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