Isuzu Motors, which is building a green field plant in Sri City in Andhra Pradesh state, India, has locked horns with the customs department over the categorisation of its D Max range of pick-up trucks over whether they are passenger or commercial.
Isuzu so far imports its Mu7 sports utility vehicles and D Max trucks from Thailand for initial Indian sales.
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The company has homologated the commercial D Max line but authorities classed it as a passenger vehicle.
“We are in discussions with the customs department to clarify our stand,” Shigeru Wakabayashi, deputy MD of Isuzu Motors told The Times of India. If disallowed by the customs department, the price of the pick-up would become unviable as it would attract higher taxes.
Meanwhile, the company has begun developing local vendors and dealers. Its new plant won’t be operational until 2016 so Hindustan Motors will manufacture under contract from 2014.
“We will use this [intervening] period to understand the customer needs better,” Wakabayashi said.
