Japanese pick-up manufacturer Isuzu Motors India has opened its first dealership in Noida – Fahrenheit Isuzu – which is also its first outlet in the state of Uttar Pradesh (UP).
17 Oct 2014 | 3072 Views | By Shobha Mathur
Japanese pick-up manufacturer Isuzu Motors India has opened its first dealership in Noida – Fahrenheit Isuzu – which is also its first outlet in the state of Uttar Pradesh (UP).
Based on the 3S model of spares, service and sales, this is Isuzu’s 11th outlet in India and will ...
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Japanese pick-up manufacturer Isuzu Motors India has opened its first dealership in Noida – Fahrenheit Isuzu – which is also its first outlet in the state of Uttar Pradesh (UP).
Based on the 3S model of spares, service and sales, this is Isuzu’s 11th outlet in India and will cater to the NCR and UP region. The company’s long-term target is to reach 60 outlets by end FY’2016.
The Noida dealership will push sales of its two locally assembled vehicles – the MU7 and the D-MAX pickup – available in three variants. Isuzu is optimistic of garnering sales of 20-25 units every month from this outlet to start with. As demand picks up, 50-70 units monthly will be targeted, said Takashi Kikuchi, president and managing director. Of this, about 25 units are expected to be of the MU7 and the balance D-MAX pick-ups.
In September, as per SIAM industry sales data, the company sold a total of 20 units and a cumulative 108 units in the April-September 2014 period.
“Uttar Pradesh is an important market for us as both the industry and agricultural sector are well developed here. We are looking at many captive users and owner-driven customers from these sectors,” he added.
Isuzu’s underlying aim is to leverage India as a manufacturing hub for servicing emerging markets once its upcoming plant at Sri City in Andhra Pradesh goes on stream in early 2016. The new manufacturing facility, which involves an investment of Rs 3,000 crore, will provide employment to 3,000 people and have an annual production capacity of 120,000 units within three years of start of operations.
Initially though, Isuzu will start production with 50,000 units with 80 percent of the production finding its way into the domestic market. The balance 20 percent will be headed for export markets like the Middle East, Africa and neighbouring countries like Sri Lanka and Bangladesh which are growing markets for pick-ups.
At present, India’s pick-up market is still in a fledgling state but Shigeru Wakabayashi, deputy managing director, added that globally it is one of the fastest growing segments and will grow to 40 lakh units globally by 2023, boosted by demand in the emerging countries especially India.
In India, pick-ups or small commercial vehicles constituted 35 percent of total CV sales last fiscal, up from 14 percent four years ago due to the gradual improvement in infrastructure and need to transport goods over longer distances in a shorter period of time. The one-tonne pick-up segment is projected to achieve a four-fold growth to 800,000 units by 2023 from the current 200,000 units, which offers huge growth potential to Isuzu Motors.