A subsidiary of Japanese automobile firm Isuzu Motors Limited, Isuzu Motors India has signed an agreement with Hindustan Motors Limited (HML) on Friday, for contract manufacturing of Isuzu Sports Utility Vehicles (SUVs) and pickup trucks in India. According to this agreement, it will assemble vehicles in HM’s factory at Thiruvallur near Chennai. The components will be exported from Thailand. But currently Isuzu Motors India imports its MU7 a SUV and DMAX pickup truck as completely Built Units (CBU) from Thailand.
“The collaboration with Hindustan Motors will support us by carrying out assembly of our products at Thiruvallur which is about 70 kms from Sri City,Andhra Pradesh, where our own local manufacturing facility is planned to come up,” said Takashi Kikuchi, president, Isuzu Motors India. And he added “We can thereby advance the scope of our sales operations and increase the scale of supply volumes without waiting for our local manufacturing facility to be ready.”
Mr. Bose, MD & CEO of Hindustan Motors Stated “Our agreement for contract manufacturing of Isuzu’s globally renowned vehicles is a testimony to the state-of-the-art manufacturing facilities at our Thiruvallur plant. The operations will enable HML to optimally utilize its spare capacity at Thiruvallur and make eminent business sense at a time when the Indian economy and the automobile industry, in particular, are passing through testing times. Today’s agreement with Isuzu is a strategic move to keep Hindustan Motors on the growth path.”