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Isuzu plans to enter the Commercial Vehicles market in India

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Japanese Auto giant Isuzu is planning on entering the small commercial vehicle and multi utility vehicle market in India. They plan to make a small LCV to take on Tata's super successful Ace, and Mahindra's UVs. The $17.1 billion Japanese auto firm is planning a greenfield facility in India, which may entail an investment of over Rs 1,000 crore. The India project team of Isuzu met state government officials of Andhra Pradesh earlier this month and are expected to meet officials from Tamil Nadu and Gujarat to explore plans for locating a new factory. The proposed facility is expected to have a capacity of 1,00,000 to 1,20,000 units and is likely to come up by 2014-2015.

The company has already formed an Indian entity called Isuzu Motors India Private Limited, which is setting up an office in Chennai, in August. To begin with, Isuzu will assemble and distribute before setting up full scale manufacturing operations. The immediate plan is to import CBUs (completely built units) and knocked down units of its lifestyle pick up truck DMAX and large SUVs like MU7 from Thailand which are sold in the South East Asian Markets by end of 2012. In the first year, the plan is to sell 1,500 units, but a person in the know of development said, "The mid-term plan of Isuzu is to develop SCV model tailored for local needs, build localization of parts and expand the sales channel, and eventually move towards a local manufacturing plant which will produce 120,000 vehicles per year by 2016, with almost 40,000 units exported." Location of the assembly plant is not yet known, but reports suggest that the company had been considering contract manufacturing at the Hindustan Motors-Mitsubishi plant in Tamil Nadu.

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ISUZU is already present in Indian market in 2 different avatars;

-In LCVs/Buses as SML ISUZU Ltd.

-In MUV as Tavera(ISUZU Panther) through GM-India.

Just thinking why they're trying to explore the another route, when they can easily exploit these.

Another option they can figure out is(I'll be thankful if ISUZU will be reading this), they can also use ICML/Sonalika's HP(Amb) Rhino manufacturing facility also for their CKD Assembly needs.

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