Isuzu might manufacture its vehicles at HM or GM India facilities

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Isuzu-MU7-Front

We reported in detail when Isuzu silently made its entry into the fast growing Indian car market. The Japanese auto maker has ‘test launched’ its new vehicles in Hyderabad and plans to gradually increase its dealer network and will probably launch a marketing campaign for its new cars.

The Isuzu MU7 SUV and D-Max pick-up can be booked at Hyderabad and Coimbatore for a sum of INR 50,000. These cars are being imported via CBU route and would be delivered to the buyer’s house. Isuzu India representatives will then visit the buyer at regular intervals and gather feedback.

Isuzu plans to soon start building its vehicles locally and plans to install a 1,000 crore manufacturing plant in Andhra Pradesh. The new plant should be fully functional by 2015.

Till then, Isuzu plans to manufacturer its vehicles at some other car maker’s manufacturing plant. The Indian division of Isuzu is already in talks with Hindustan Motors and General Motors India to start manufacturing its products at their facilities on a contract basis. It is also being said that Isuzu is working closely with Mitsubishi to set up its operations in India. It may be noted that Mitsubishi has 9.2% stake in Isuzu Motor Limited. Now, Hindustan Motors and Mitsubishi are present in a tie up in Indian market and hence, there are good chances of HM becoming the chosen partner for Isuzu to manufacture its vehicles. However, General Motors too has a high chance of becoming Isuzu’s partner as it’s Halol and Talegoan plant are not running at full capacity.

Source:  m.economictimes.com

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