Isuzu rolls-out locally assembled MU-7 SUV

Isuzu Motors made a quiet entry to India in 2013, with just two dealerships in Hyderabad and Coimbatore and the initial lot of cars being imported as CBUs. What’s worse, the engines used were only BS III compliant, and therefore ineligible for sale in bigger metros. Now, however, Isuzu has commenced local production and has rolled out its first Indian assembled model, an MU-7 SUV, today. It has also made a BS IV-compatible version of the car’s 3.0-litre turbo diesel engine. The vehicles are being assembled at Hindustan Motors’ plant at Thiruvallur, Chennai, from CKD kits which will be sourced from Thailand. As of now, only the Isuzu MU-7 SUV is being rolled out of this factory, but assembly of the company’s D-Max pick-up truck will commence soon.

The deal with Hindustan Motors (HM) has gone from negotiations (in Feb, 2013) to actual production in just 10 months. Isuzu says it chose HM as a partner because it found that the Indian company met its global quality standards, and that its Thiruvallur facility had a “good location, strong performance and adequate facilities”.

This is the first step in a major India plan for the Japanese company, with its own full-fledged manufacturing plant planned at Sri City in Andhra Pradesh, which is slated to be operational by 2015-16. The company has earmarked a total investment of Rs 3,000 crore for this facility, which is expected to have a vehicle production capacity of 1.2 lakh units per year. The facility is planned to primarily produce LCV’s (including the D-Max), and these will also be used for export. The company has said that it is still evaluating whether or not to produce the Isuzu MU-7 SUV at this facility, so as of now plans are to only assemble it at the HM plant in Chennai.

The Andhra Pradesh plant is still two years away, but the company’s Indian expansion has already begun with assembly at the HM plant. Its third dealership, in Chennai, will be inaugurated on December 11, and the company says it plans to take that number up to eight before the end of the year. What’s more, it plans to have 60 dealers across the country by 2015-2016.

Acknowledging the importance of brand value in India, Isuzu is also working on establishing itself and its products with Indian buyers. To this end, it is focussing on its good reputation for producing solid and fuel-efficient diesel engines to buoy its image. In fact, the company says feedback has shown that one of the reasons for the brand’s warm reception with Indian customers so far is the Hindustan Ambassador, which has used Isuzu engines since 1992. It has also announced a new service initiative called ‘Isuzu Insight’ for its customers, whereby the company will provide guidance on correct driving style and habits which in order to improve fuel efficiency and vehicle performance.

As for the car itself, the new BS IV-compliant Isuzu MU-7 SUV still uses the 3.0-litre common rail diesel engine that produces 161bhp. This version is priced at Rs 22.3 lakh (ex-showroom, Chennai), while the BS III version, which is still available, can be had for Rs 22 lakh (ex-showroom, Chennai). 

Read our detailed Isuzu MU-7 SUV review