Isuzu is planning an assembly plant in Cuautitlan, Mexico, according to the Nikkei newspaper.

The company is taking this step to reduce costs. Japanese producers are increasingly looking to outsource manufacturing due to the stronger yen.

Isuzu sells 3,000 to 4,000 trucks per annum in Mexico and intends to assemble 600 four-ton vehicles at the plant in the first year, starting within a few months, the report said.

The company also plans to export pickup trucks from Thailand to Chile, the report noted.