Isuzu to use diesel engines built by General Motors India?

Isuzu India has appointed Hindustan Motors to handle assembly operations of completely knocked down (CKD) kits of the D-Max pick up truck and MU-7 SUV as an interim measure until 2016, when Isuzu's greenfield factory at Sri City, Andhra Pradesh, will be ready to begin production. The Japanese pick up truck and SUV maker is also said to be considering outsourcing engine assembly to American car maker General Motors's Indian division. 

The diesel engine that General Motors India could manufacture for Isuzu will be based on the design and specifications provided by the latter. According to a report on Nikkei, Isuzu is said to be looking at sourcing 100,000 diesel engines per year, from General Motors India. Isuzu's factory at Sri City, which will begin production by 2016, will have a yearly capacity of 120,000 units. The facility is expected to produce the D-Max range of pick up trucks and the Mu-7 SUV.

The D-Max pick up truck range will be heavily localized. The pick up trucks will be aimed at the Indian and African markets. From the numbers, it seems like the diesel engines produced by General Motors India could be used mainly on the D-Max range of pick up trucks. General Motors India has an engine factory at Talegaon, off Pune. The Talegaon factory has a capacity of producing 160,000 engines a year, in both petrol and diesel guises.

The flexible engine factory can be expanded to produce an additional 140,000 engines each year. Given General Motors India's current monthly sales numbers of well under 10,000 units, the car maker seems to be well poised to cater to Isuzu's demand for 100,000 diesel engines per year from its Talegaon engine facility. Notably, General Motors India has outsourced diesel engines of the Tavera MUV to ICML Sonalika and AVTEC Limited.  General Motors's association with Japanese automaker Isuzu goes a long time back.

The American automaker took a 49% stake in Isuzu, in 1971. In the past, both automakers have worked on joint product development. In 2006, General Motors exited its Isuzu stake. However, the automakers continued to partner for many products such as the Chevrolet Tavera (A rebadged Isuzu Panther) sold in India. GM and Isuzu also joined hands to develop the 2011 D-Max pick up truck. The latest GM-Isuzu tie up could center around turbo diesel engines for the D-Max range to be built in India. 

Isuzu currently has two operational dealerships in India, at Coimbatore and Hyderabad. The third dealership, at Chennai, is expected to come up shortly. By the end of 2013, Isuzu plans to have 10 dealerships in India. The number will be expanded to 60 by 2016, the year which Isuzu plans to commence production at its greenfield manufacturing facility in India. Until Isuzu's greenfield factory comes up, Hindustan Motors's Tiruvallur facility will assembly 300-500 units of the D-Max and MU-7 each month, starting from December 2013.