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MOTORINDIA
l
July 2012
Isuzu foraying into Indian LCV segment
with subsidiary in Chennai
Isuzu Motors Ltd. is all set to es-
tablish a company in Chennai in Au-
gust to produce and sell light com-
mercial vehicles (LCVs). The move
comes as part of Isuzu’s mid-term
business plan to develop a new LCV
business in India’s growing market.
The company, tentatively named
Isuzu Motors India Pvt. Ltd., will be
a 100 per cent subsidiary of Isuzu
Motors Ltd. with an initial invest-
ment of Rs. 300 million.
Isuzu plans to sell around 1,500
vehicles in the first year. It also
plans to develop products which are
tailored for local needs, localization
of parts and expansion of its sales
channel. In future a local manufac-
turing plant will be set up with an
targeted sales volume of 100,000
vehicles.
India’s automobile market has
been growing rapidly, from 900,000
units in 2002 to 3.3 million units in
2011 with the country’s steady eco-
nomic growth. A further expansion
of the market is expected. Improve-
ment in roadway infrastructure and
increase in per capita income will
positively facilitate this expansion.
Viewing these developments as an
opportunity, Isuzu Motors has de-
cided to launch its LCV business in
India.
The entry of Isuzu is sure to in-
tensify competition in the growing
LCV segment in the country, and it
will be interesting to see the com-
pany battle it out for a market share
with more established players in the
field.
w
vehicle zone
The sale of LCVs shipped from Thai-
land in the form of finished vehicles
and knock-down kits will begin before
the end of 2012.