Isuzu Motors will invest Rs. 3,000 crore at its manufacturing plant in Sri City, Andhra Pradesh. The construction of the plant is likely to start by end of the month.
"As a first step, we will have a production capacity of 50,000 when we start production in 2016. Within three years, we will try to increase to 80,000. That is 2018-19. By 2020, we would like to increase further up to 100,000. That is the target for the time being, said Takashi Kikuchi, Isuzu Motors India president and managing director."
Isuzu Motors has a signed an contract manufacturing agreement with Hindustan Motors under which HML will assembling CKD kits of Isuzu's SUV MU-7 and pick-up trucks D-Max at its manufacturing plant in Thiruvallur, Chennai.
He also added that the the complete localization of production is expected to be done with three years after 2016. "Maybe in 2018, we will achieve 100% localization. The total of 200 vehicles has been sold, while the SUV sold were 50-60 and the remaining are pick-up vehicles, he said. The company will be producing SUVs and Light Commercial Vehicles (LCVs) in the new production plant, he added.