Wednesday, December 11, 2013

Japan’s Isuzu locally made MU-7 joins SUV race in India, launches @ Rs 22.3L


Japanese automaker, Isuzu Motors on Tuesday formally announced its entry into the fast growing Utility Vehicle (UV) market in India, with the launch of its sports utility vehicle (SUV), MU-7. The company hopes to drive home the point of being known worldwide as a ‘diesel engine expert’ as its USP to endear its products to the Indian buyers.
Isuzu will initially import it as CKD (completely knocked down) kits from Japan and assemble the same at the Hindustan Motors’ facility at Thiruvallur near Chennai. The Japanese automaker had entered into a contract manufacturing agreement with the Indian company, to which it has been supplying its diesel engines for several years, in June this year.

For the long term, the company has chalked out plans to invest around Rs 3,000 crore in a greenfield facility at SriCity SEZ, north of Chennai but located in Andhra Pradesh. The new facility, to be ready by 2016, will have a capacity of 1.0 – 1.2 lakh vehicles per annum and these will be a mix of pick up trucks and UVs, since the company plans to focus on LCV and UV segment in India.

“India is a key region in Isuzu’s global growth strategy for its emerging markets and as an important manufacturing hub in the future. In the next five years, our focus will be to accelerate our business and establish Isuzu as an important player in the pick up trucks and utility vehicles market in India,” said Takashi Kikuchi, managing director, Isuzu Motors India.

“The MU-7 is known for its ruggedness, durability and fuel efficiency and is a proven and successful SUV in other key markets,” he added. It is said to be the longest SUV in the Indian market and with lot of space.

Initially the company is launching MU-7 in two variants. While the BS-III variant will be priced at Rs 22 lakh (ex-showroom Chennai), the BS-IV variant will be priced slightly higher at about Rs 22.4 lakh.

The company has opened eight dealerships so far in south India. It targets to increase the number of dealerships to sixty in about two years.

Along with the SUV, the company will also launch a pick up truck D-Max in the three-tonne category next year. Together, it hopes to sell about 5,000 units per annum, until its own manufacturing facility starts operations, by which time it hopes to establish a local sourcing base for components to enable it to launch its vehicles with at least 70 per cent indigenous parts

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