Isuzu no longer assembling cars at HM's Chennai factory

Isuzu has started the process of moving production from the Hindustan Motors plant in Tiruvallur, Chennai to its own facility at Sri City, AP. The company has stopped rolling out vehicles from the Chennai facility from December 2015.

Isuzu had been using the Hindustan Motors plant to assemble the MU-7 SUV and D-Max pickup truck. While the new plant isn't expected to start producing vehicles before April 2016, the company believes it has enough vehicles in stock to meet the demand till then.

Isuzu has invested Rs. 3,000 crore in the new plant. Initially, the facility will have an annual production capacity of 50,000 units. This number can be expanded to 1.2 lakh units.

It has also formed 'Isuzu Engineering Business Centre India Private Limited', a new company that will be responsible for R&D and sourcing related activities. This company is expected to help Isuzu achieve 70% localisation at the start of production and 100% localisation in the future.

Source: ET Auto