Isuzu starts local production of MU-7 SUV

Isuzu Motors India formally commenced its journey in the Indian four-wheeler spectrum today as it rolled out its first made in India MU-7 SUV today. The Japanese four-wheeler manufacturer had entered the Indian market in February when it launched the MU-7 as a CBU (Completely Built Unit) offering. The MU-7 will be now locally assembled at the Hindustan Motors (HML) manufacturing facility at Thiryvallur on the outskirts of Chennai. Isuzu and HML had signed a contract under which the Indian four-wheeler manufacturer has been contracted to assemble CKD kits of both the MU-7 and pick-up truck D-Max. The MU-7 was launched in small numbers to gauge the feedback of the customers and till now, Isuzu has been successful in selling close to 180 units. The MU-7 is a premium seven-seater SUV and is powered by a four-cylinder, 2999cc common-rail turbo diesel mill with variable geometry turbo system producing 163PS of power and 360Nm of torque. 

Commenting on the occasion, Takashi Kikuchi – Managing Director, Isuzu Motors India Pvt. Ltd said, “We are extremely happy to begin the local assembly of our products in India. It is the culmination of our extensive research over the last 3 years to understand the Indian market. India is a key region in Isuzu’s global growth strategy for its emerging markets and as an important manufacturing hub in the future. In the next 5 years, our focus will be to accelerate our business and establish Isuzu as an important player in the pickup trucks and utility vehicles market in India.”

The boffins at Isuzu concentrated their efforts in maximising the interior space while designing the MU-7 because of which it has been endowed with a 3 metre wheelbase. With the commencement of the CKD operation, the Japanese manufacturer has been successful in reducing the price of the SUV as the BS4 variant has been priced at Rs 22.3 lakh and BS3 variant at Rs 22 lakh (both prices are ex-showroom Chennai). Though, Isuzu has been able to reduce the price of the MU-7 quite considerably but according to company officials they can bring it further down by localising the components and have set themselves a target of three years to achieve 100 per cent localisation. Currently, Isuzu has eight outlets spread across South India but will be adding dealerships in Mumbai and Delhi by the first half of 2014 and further expand it to 60 dealerships by 2015. Isuzu has also invested Rs 3,000 crore for its own production facility at Sri City in Andhra Pradesh which would be completed by 2016 and it would have a manufacturing capacity of 1 to 1.2 lakh LCV unit a year.