Thursday, October 17, 2013
Isuzu To Overhaul Midsize Truck For Emerging Countries
TOKYO (Nikkei)--Isuzu Motors Ltd. (7202) is planning a full model change for the midsize truck it sells in Indonesia and hopes to boost its local market share by introducing the all-new vehicle in 2015.
The new midsize truck is being created not just for the Indonesian market but also as a strategic product to be sold in other emerging countries. Due to poor road conditions, trucks for emerging markets tend to need more maintenance and repairs than those in Japan. Consequently, the truck being developed will have easily replaceable parts and will feature an improved structure that can be readily maintained and repaired.
Isuzu has partnered with a Chinese truck manufacturer in development and will increase procurement of Chinese-made parts to reduce costs and enable the new truck's price to be lowered by 20% from the existing model.
The Japanese automaker is positioning Thailand as its production base for pickup trucks and Indonesia as the key location for making midsize and large trucks. It is building a new plant in Indonesia that in fiscal 2015 will double truck output capacity there to more than 30,000 units a year. Isuzu currently ranks third in the Indonesian market with a 13% share.
(The Nikkei Business Daily, Oct. 17 edition)