Hindustan Motors has signed an agreement with Isuzu Motors’ Indian subsidiary to contract manufacture SUVs and pickup trucks in the country.
Components will be imported by Isuzu from Thailand and the vehicles will be assembled in HM’s factory at Thiruvallur, near Chennai.
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HM has long had a relationship with Isuzu. In the late 1980s, the two companies collaborated to make 1.8 and two litre engines. The Indian company has been in search of contract manufacturing opportunities for its Chennai plant where it previously assembled the Mitsubishi Lancer.
Takashi Kikuchi, president, Isuzu Motors India, said: “We are very confident about the growth prospects of the SUV and LCV market in India, notwithstanding the current slowdown. We are happy with the positive feedback of the market to our MU7 SUV and D-MAX pickup truck, which we launched in Coimbatore and Hyderabad in March this year by importing these as CBUs from Thailand.
“We would now like to expand our sales operations in other parts of India, starting with the southern region. The collaboration with Hindustan Motors will support us by carrying out assembly of our products at Thiruvallur which is about 70km from Sri City, Andhra Pradesh, where our own local manufacturing facility is planned.”
Isuzu started its own operations in India in 2012 and has set up two dealerships — Hyderabad and Coimbatore — with another opening soon in Chennai. The dealer network expansion will continue with 9-10 outlets expected by end of the year.
