Isuzu inks MoU with AP government for vendor investments

Isuzu Motors India, a subsidiary of Isuzu Motors, Japan has signed an MoU with the Andhra Pradesh state government  to facilitate investments by its suppliers under the state’s Automobile and Auto Component policy 2015-20.

The MoU was signed by Takashi Kikuchi, the company’s MD, in the presence of the state’s chief minister, N Chandrababu Naidu, state government officials as well as representatives from various auto component companies.

At the launch of Industrial Mission programme, seven auto component companies nominated by Isuzu Motors India, have signed MoUs with the state government. They will receive various incentives and concessions from the state government to promote automotive manufacturing in the state. These suppliers will explore possibilities of investments in the state in order to cater to requirements of the OEMs who will set up their manufacturing facilities in the region.

Kikuchi said, “We are extremely pleased with the developments and we believe the policy for Automobile and Auto Components 2015-20 will immensely benefit the automobile sector, going forward. While automobile and auto component manufacturers will benefit from the advantages laid out by the policy, it will also attract substantive and qualitative investment into the state. The policy is a win-win situation for investors and the state”

Isuzu is also in the process of tying up with various component manufacturers across India towards its goal of achieving 100 percent localisation for its products to be manufactured from its upcoming plant in Sri City.

Isuzu began construction of its manufacturing plant in June 2014 after buying 107 acres in 2013. This new facility is likely to commence commercial operations by early 2016, with the initial production capacity at 50,000 units per annum. The company will scale up capacity to 120,000 units a year at a total investment of Rs 3,000 crore. The plant is expected to generate about 3,000 jobs.

Isuzu currently assembles two models in India including the D-Max UV and the MU-7 SUV at Hindustan Motors’ plant near Chennai.