Isuzu: New Thai R&D center develops trucks for emerging markets

Plan to produce light commercial vehicles and low-priced pickups in India



The D-MAX-based SUV "mu-X" produced in Thailand

Expanding operation bases from one in Japan to three bases globally
According to Isuzu Motors Ltd., sales volume of commercial vehicles is shifting to Asia and other emerging markets. In view of the prevailing market trend, Isuzu is shifting from Japan-centered operations to a "global three core-base operations." The three new bases consist of Japan, Indonesia (operational base for building commercial vehicles for emerging markets) and Thailand (operational base for building light commercial vehicles). Isuzu will localize its vehicle development operations and increase production capacity to meet needs in emerging markets more effectively.

New Thai R&D headquarters for developing commercial vehicles for emerging markets
Isuzu has established a new R&D headquarters in Thailand for developing trucks and commercial vehicles (CVs) for emerging markets. The center became operational in April 2014. Isuzu is also constructing a new CV plant in Indonesia. Production at the new plant will start in 2015 with annual capacity doubled to 50,000 units.

To produce light commercial vehicles including pick-up trucks in India
Isuzu and General Motors Company (GM) have agreed to joint development of next-generation pickup trucks. In the spring of 2016, Isuzu will start production of light commercial vehicles (LCVs) in India as well as Thailand. The company also plans to produce low-priced pickup trucks.

To invest JPY 100 billion in plant and equipment and JPY 25 billion in growth strategy
 Isuzu ended the fiscal year ended in March 2014 (FY 2014 ) with consolidated net sales of JPY 1.76 trillion and operating income of JPY 174.2 billion. This marks increase in revenues and record-high net income for two consecutive years with an operating profit ratio of 9.9%. These figures resulted from brisk sales in Japan and foreign markets, and foreign exchange profits of JPY 25.3 billion. Capital investment of JPY 100 billion is planned for FY 2015 to end in March 2015 along with investment of JPY 25 billion in 'growth strategy expenditure' that will affect current profit and loss. Isuzu is expecting net sales of JPY 1.84 trillion for FY 2015 on account of increase in shipment in Japan and overseas. However, operating income is expected to decline by 5.3% to JPY 165 billion due to the investment in growth strategy.

Related Reports: Isuzu and Hino shift core functions to Thailand and Indonesia (Oct. 2012)

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