In a move that might mean good news for truckers all over the country, Isuzu motors India Private Limited is setting up its manufacturing plant at Sri City in Andhra Pradesh. Under the Automobile and Auto Component Policy 2015-1020, a Memorandum of Understanding was signed today between Isuzu officials and the Government of Andhra Pradesh. The MoU is described as a multilateral agreement between Isuzu and the state government.
N Chandrababu Naidu, the Chief Minister of Andhra Pradesh along with key dignitaries of the state and key officials from various auto component companies were present when Takashi Kikuchi, the managing director of Isuzu Motors, India signed the MoU.
The MoU was signed by seven auto component companies. All of these were nominated by Isuzu, at the launch of the Industrial Mission Programme. This is in an effort to promote manufacturing of vehicles in the state as the Andhra Pradesh government would be granting the auto component companies with various benefits. These automobile component companies will in turn increase production and cater to the future requirements of the OEMs.
Takashi Kikuchi said, âWe 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.â
What we know is that Isuzu is also in the process of tying-up with various component manufacturers across India towards its goal of achieving 100 per cent localisation for its products to be manufactured at its upcoming plant in Sri City, Andhra Pradesh. This will help drop the total cost resulting in lower prices for their vehicles – making Isuzu a more attractive prospect for customers.
The new plant at Sri City has been set up with an initial capacity of 50,000 units per year. Isuzu plans to finally bring that figure to 1.2 lakh units annually. The plant is said to create around 2,000-3,000 jobs. Sri City is a perfect location for the upcoming project since itâs less than a two hour drive away from the Chennai and Tirupati airports, says Isuzu. An investment of around Rs 3,000 crore was made towards this project.
Isuzu Motors India signs an MoU with Government of Andhra Pradesh
|â˘ IMI and GoAP to facilitate auto component companies to invest in the state under Automobile and Auto Component Policy 2015-20.
â˘ Seven IMI nominated auto component suppliers sign MoU with the GoAP at the launch of Industrial Mission by Honâble Chief Minister of the state.
Vishakapatnam: Isuzu Motors India Private Limited, a subsidiary of Isuzu Motors, Japan, one of the worldâs largest commercial vehicle manufacturers, setting up its manufacturing plant at Sri City in Andhra Pradesh, today, signed a Memorandum of Understanding with the Government of Andhra Pradesh to facilitate investment by its suppliers in the state of Andhra Pradesh under the Automobile and Auto Component policy 2015 - 20. Mr.Takashi Kikuchi, Managing Director, Isuzu Motors India signed a MoU with the state government in the presence of Shri. N. Chandrababu Naidu, Honâble Chief Minister of Andhra Pradesh, key dignitaries of the state and key officials from various auto component companies.
At the launch of Industrial Mission programme at Vishakapatnam, today, 7 auto component companies nominated by Isuzu Motors India, have signed an MoU with the state government. As per the policy, the auto component companies will receive various incentives and concessions from the state government for promoting automotive manufacturing in Andhra Pradesh. These auto component companies will explore possibilities of appropriate investments in the state in order to cater to the future requirements of the OEMs who will set up their manufacturing facilities in the region.
Speaking at the occasion, Mr. Takashi Kikuchi, Managing Director, Isuzu Motors India, said, âWe 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 stateâ
Isuzu is also in the process of tying-up with various component manufacturers across India towards its goal of achieving 100 per cent localisation for its products to be manufactured from its upcoming plant in Sri City.
Isuzu began construction of its proposed manufacturing plant site in Sri City, Chitoor District, Andhra Pradesh, in June 2014. The company had acquired 107 Acres of land in 2013 after signing a MoU with the Andhra Pradesh State Government in order to start automobile manufacturing operation in India. This new facility is likely to commence commercial operations by early 2016, with the initial production capacity at 50,000 units/ year. Isuzu will scale up the production capacity to 120,000 units/ year, with the accumulated investment of Rs. 3,000 Crore, and is expected to generate 2000 - 3000 jobs.