At the Industrial Mission Programme which was held by the Andhra Pradesh Government earlier this week in Vishakapatnam, 7 automotive component manufacturers nominated by Isuzu India have signed MoUs with the state government to set up shop. These vendors will feed the Japanese automaker’s upcoming manufacturing plant at Sri City.
The 7 vendors nominated by Isuzu India will set up manufacturing facility to feed the automaker’s upcoming Sri City plant.
Isuzu also signed an MoU to facilitate investment by its suppliers in the state under the Automobile and Auto Component policy 2015 – 20. Under the policy, the automakers and auto component manufacturers will be offered various incentives and concessions for promoting automotive manufacturing in the state. As per the MoUs, the auto comp majors will explore the investment opportunities within AP to supply OEMs.
Isuzu Motors is betting big on India as its new manufacturing base and had signed an MoU with AP government in 2013 to establish a full fledged automotive manufacturing unit at Sri City in Chitoor district. The construction work on the 107 acre land began in June 2014 and if things go as planned, the facility should be ready by early 2016. Meanwhile, Isuzu has an ad hoc arrangement with Hindustan Motors Finance Corporation Ltd. to build its D-Max pickup and MU-7 SUV at the latter’s facility near Chennai.
With a cumulative investment of INR 3,000 cr, Isuzu’s factory is estimated to generate up to 3,000 jobs.
The Sri City facility would have an initial production capacity of 50,000 units a year which can be scaled up to 1,20,000 units per year with a cumulative investment of INR 3,000 cr. The project is estimated to generate 2,000-3,000 jobs.
In a bid to stay independent of its overseas manufacturing bases, Isuzu Motors India is in the process of building a strong relationship with the country’s auto component suppliers to achieve 100% localization. Currently the company is expanding its dealership network across the country slowly but we can expect aggressive expansion once the manfucaturing unit is in place. We also expect Isuzu to make India is new export base.
The plant is expected to be operational by early 2016.
As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive journalist by profession!