The Japanese automotive giant Isuzu Motors signed agreements with the AP Government and the Sri City SEZ to set up a Rs1500 crore manufacturing facility for its MU-7 variant of sports utility vehicles (SUV) and D-MAX range of pick-up trucks in SPSR Nellore district. The project will be set up on a 100-acre site purchased by the company from Sri City, 55 km from Chennai. ISUZU will get 100 per cent concession on payment of value-added tax from the AP government.


The plant with a capacity of 1.2 lakh units a year is expected to commence commercial production by the end of 2015; 80,000 vehicles for the domestic market and 40,000 for export. Till the time production started at Sri City, Isuzu would import completely built units from its Thailand facility and sell them through its dealerships in Hyderabad and Coimbatore. The plant is expected to employ 6,000 persons at full capacity.