Japanese automotive giant Isuzu Motors signed agreements with the Andhra Pradesh Government and the special economic zone of Sri City to set up a manufacturing facility for its MU-7 variant of sports utility vehicle (SUV) and D-MAX range of pick-up truck in Chittoor district on the Tamil Nadu border.
Chief Minister N. Kiran Kumar Reddy and Japanese Ambassador to India Takeshi Yagi were present during the signing ceremony with the State government.
The project will come up on a 100-acre site purchased by the company from Sri City, 55 km from Chennai, with 100 per cent concession on payment of value-added tax from the Andhra Pradesh government.
Commercial production
The plant is expected to commence commercial production by the end of 2015 or beginning of 2016, according to Isuzu Motors Deputy Managing Director Shigeru Wakabayashi.
He told media persons after the ceremony that the capacity of the plant would be 1.20 lakh units a year, with 80,000 vehicles for the domestic market and 40,000 for export. The investment was yet to be finalised as its size would be known only after ascertaining which process that went into making the final product would be established in Sri City, he added. Till the time production started at Sri City, Isuzu would import completely built units from its facility in Thailand and sell them through its dealerships in Hyderabad and Coimbatore, he added. Major Industries Minister J. Geeta Reddy, however, said the MoU with Isuzu envisaged an investment of Rs.1,500 crore and employment for 6,000 persons.
