Isuzu Motors India ropes in 30 suppliers in localisation drive

Isuzu Motors India, which recently launched its D-Max pickup truck in the domestic market, has begun identifying suppliers in a bid to achieve high levels of localisation. In the first stage so far, the company has brought on board around 30 local suppliers. Isuzu will commence production at its new plant at Sri City in Andhra Pradesh from 2016 with 70 percent localisation. The company has committed an investment of Rs 3,000 crore for the greenfield manufacturing facility.

Following its entry into the Indian market in 2012-13, Isuzu took the CBU route to introduce and market its MU-7 SUV and D-Max. Since December 2013, the company started assembling both these models at Hindustan Motors’ Chennai plant. At present, the company sources the battery, some glass and tyres locally in India.

Talking to Autocar Professional at the Chennai launch of the D-Max, Taizo Nakahigashi, director and senior vice-president (engineering), said, “We have already started talking to suppliers in India and we are getting an encouraging response. Our recent supplier meet in Chennai saw more than 100 suppliers from various regions of India.”

The Indian pick-up market, which recorded sales of around 200,000 units largely catered to by Indian OEMs such as Tata Motors and Mahindra & Mahindra, is estimated to grow to 800,000 units by 2023. At present, Thailand, which sees sales of 300,000 units per annum, is the largest pick-up market in the world. Isuzu holds 40 percent of the pick-up market share in Thailand and takes second position after leader Toyota.

“India will be our manufacturing hub and we will look to export from here. In Thailand, we have achieved about 80-90 percent localisation with the balance components being imported from Japan. In India we want to achieve 100 percent localisation,” said Nakahigashi.

He also said that there is likelihood of the company setting up an engine facility in India. The Japanese automaker has engine plants in Thailand, Japan and the Philippines, among other countries. 

Meanwhile, Isuzu Motors India is aggressively looking to tap the South India market. Currently, it has a presence across all four states with dealerships in Chennai, Bangalore, Hyderabad, Coimbatore, Madurai, Vishakapatnam, Triupati and Kochi. The dealership network plan will see a total of 60 outlets being opened across the country by the end of 2015-16.

Also read: Isuzu may add new model in India by 2016

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