The Nikkei reports that Isuzu Motor Ltd. will team up with Sumitomo Corp. and Swaraj Mazda Ltd. to become the first Japanese automaker to produce midsize buses in India.
Swaraj Mazda and Sumitomo will soon bring a new auto plant online next to their existing factory in northern Delhi. The new facility will be equipped with six 300-meter production lines, with Isuzu leasing two of them to make buses.
The buses will be priced around 1.5 million yen, some 20% higher than buses made by local manufacturers but 10-20% lower than those offered by European firms which, like Isuzu, have started to focus on the Indian market because demand in their home countries is leveling off.
Isuzu plans to expand production to include trucks by 2010.