Under the Automobile and Auto Component policy 2015-20, Isuzu Motors India has signed an MoU with the Andhra Pradesh government to facilitate investment by seven of its component suppliers in the state.
These auto component companies will be entitled to several concessions and incentives from the Andhra Pradesh government, ETAuto Bureau reported.
Isuzu is building a manufacturing plant in the state in Sri City. Construction of this factory commenced in June 2014, and it is expected to start operations by early 2016. The plant, which is expected to create 2,000-3,000 jobs, will have an initial annual manufacturing capacity of 50,000 units. This will later be increased to 120,000 units per year.
Isuzu Motors India MD Takashi Kikuchi said, “We are extremely pleased with the developments and we believe the policy for Automobile and Auto Components 2015-20 will immensely benefit the automobile sector, going forward. While automobile and auto component manufacturers will benefit from the advantages laid out by the policy, it will also attract substantive and qualitative investment into the state. The policy is a win-win situation for investors and the state.”