According to a report carried on the website, AutoAsia, Isuzu Motors will ‘soon’ begin the production of engines and a variety of components in China for local assemblers.
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The report says that plans call for the production of low-pollution diesels in Chongqing for sale to Chinese truck manufacturers. Components production will get underway in the second phase, officials are reported to have said, though no timetable has been released.
The Chinese commercial vehicle market is dominated by locally produced products based on Soviet era technology. Gasoline-engined medium duty trucks of around 7 tonnes Gross Vehicle Weight (GVW) dominate the ageing truck parc.
Many foreign manufacturers are confident that China’s commercial vehicle market will grow at a healthy pace on the back of China’s strong economic growth. However, they are also looking carefully at the risks associated with manufacturing in China when devising investment strategies. Isuzu has recently pulled out of a bus-making venture, but is making trucks in Chongqing at relatively low volume (under 30,000 units per annum).
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