Hong Kong-based DCH Holdings plans to invest about NT$1bn (US$33.3m) to set up a plant in Taiwan to assemble Isuzu trucks through its local subsidiary, Taipei Triangle Motors, the local importer.

C M Yu, president of Taipei Triangle Motors, told China Economic News his company plans to spend another NT$250m (US$8.3m) on a sales and service network in Taiwan in 2012 and 2013, and wants a 25% share of the commercial vehicle market within five years.

DCH has sold Isuzu trucks in Hong Kong since 1972 where it has been the top imported truck brand for 33 years. It was also top in China for the last decade, prompting Isuzu to ask DCH to set up in Taiwan.

Yu said Taiwan is a mature market for commercial vehicles and purchases are mainly replacements. Isuzu has many customers, Yu said, and the brand's high cost/performance value is expected to win back old customers and compete with major rivals Hino and Fuso.

Taipei Triangle Motors sells imported 3.49 to 9.5 ton light trucks and mid-sized bus chassis and will now assemble 10-ton-plus Isuzu trucks in Taiwan to reduce import tariffs and prices.

It plans eight or nine sales and service dealers and another 30 service points by the end of 2013. It will build a fully-owned truck assembly plant in central Taiwan on land in Taipei where it also has headquarters and spare parts facilities.