Isuzu signs yet another MoU with Andhra Pradesh, this time for vendor investments
Under Andhra Pradesh Automobile and Auto Component policy 2015-20, an MoU was signed by Takashi Kikuchi, MD of Isuzu Motors and N Chandrababu Naidu, Chief Minister of Andhra Pradesh. Seven auto component companies recommended by Isuzu Motors, India will receive certain incentives and concessions from the state government, which will promote automotive manufacturing in the state.
This initiative will benefit the entire automobile sector besides attract heavy investments in the state of Andhra Pradesh. These investments by suppliers will go a long way in assisting Isuzu Motors India Private Limited setting up a manufacturing plant at Sri City, Chitoor District, Andhra Pradesh. Besides local investment, Isuzu is also trying to enter into agreements with other automotive component manufacturers across the country to achieve 100 percent localization of all products to be produced from this upcoming plant.
Construction of the new Isuzu plant commenced in June 2014 and is spread over an area of 107 acres. Set to be completed and ready for operations by early next year, the new Isuzu plant will have initial capacity of 50,000 units per annum to be increased to 120,000 units. The new plant sees investments of INR 3,000 crores and will offer employment to 3,000 persons.
Isuzu Motors, established in August 2012 has its headquarters in Chennai. The company has an agreement with Hindustan Motors for assembling of CKD kits of Isuzu MU-7 SUV and D-Max Pick-up truck from its Thiruvallur, Chennai Plant.