Hindustan Motors could offer Isuzu Chennai pit stop for its pick-up trucks
The CK-Birla Group run Hindustan Motors (HML), which is on the verge of a turnaround, is close to clinching a deal with Japanese automobile major Isuzu Motors to manufacture pick-up trucks at its Chennai plant. According to sources, the deal is expected to be finalised early next fiscal.
Isuzu Motors has been scouting for a partner in India for contract manufacturing of its pick-up trucks. The company will launch its D-MAX pick-up trucks and sports utility vehicle (SUV) MU7 in India. The pick-ups will compete against M&M models like Bolero pick-up and Genio.
Uttam Bose, MD and chief executive officer, HML said, “We are in talks with Isuzu Motors, which are are at an advanced stage.”
The Tiruvallur plant in Chennai manufactures and markets Mitsubishi vehicles, which holds 9.2% stake in Isuzu. “The Chennai plant is an easy entry for Isuzu since its stakeholder Mitsubishi already produces out of the plant. The HML's tie-up with Isuzu has come through due to the former's association with Mitsubishi,” said an auto consultant.
HML is in the process of restructuring its business wherein the Chennai plant is to be demerged from HML to Hindustan Motor Finance Corporation (HMFCL) from April 1, 2012. In a filing in the BSE in February, the company informed that HMFCL is a wholly owned (100%) subsidiary of HML with HML and its nominees holding all the existing equity shares issued by HMFCL. The scheme of arrangement is subject to court approval.
“The idea is to separate the Chennai plant
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