100% indigenisation in India plant by 2019: Isuzu Motors

Japanese automobile company Isuzu Motors, which is setting up a sports utility vehicle (SUV) greenfield manufacturing facility in Sri City in Andhra Pradesh, will achieve 100 per cent indigenisation within three years of commencing production in 2016.

“We are confident of reaching 100 per cent indigenisation by 2019. In the first year itself, we will try to achieve about 70 per cent in the first year itself,” the president and managing director of Isuzu Motors India, Takashi Kikuchi said.

He was talking to reporters in Bangalore on Friday after launching its SUV in the city and first showroom (Trident Automobiles) in Karnataka.

He also said that the company will tie-up with about 100 auto component suppliers in India for its Rs 3,000 crore project in Sri City. The facility will have a capacity to manufacture 50,000 SUVs in the first year and scale up to 1 lakh units annually within the next five years. Currently, its SUVs and pick up trucks are assembled at the Hindustan Motors factory in Tamil Nadu under an agreement.

The deputy managing director of Isuzu Motors India, Shigeru Wakabayashi said that the company will expand its dealer network this year to reach 12, up from five at present and consistently scale up. “By 2016, we will have 60 dealers in India, predominantly in the southern cities,” he said.

The utility vehicle market during the April-December period last year saw 4.39 per cent fall in domestic sales at 3.85 lakh compared to 4.03 lakh units during the corresponding period in 2012.

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