Despite the current sluggishness in the automobile industry, Japanese commercial vehicles (CV) major Isuzu Motors, is anticipating a strong traction in the market for Sport Utility Vehicles (SUVs).
The demand for SUVs would be around 10 million units per year in the next 10 years, a top company official said today.
The market for SUVs grew at around 50 per cent in 2012-13 and expected to post 15 per cent increase in the next financial year, Isuzu Motors India Vice-President (Vehicles sales division) Toru Kishimoto told reporters after the launch of its new MU 7 here.
Isuzu was targeting a sales of around 4,000 units in the next one year as the SUV and pick-up truck market would continue to grow, he said.
Moreover, the growth had been stable in the last 3-4 months, expected to pick up from January and February, Amit P Joshi, Senior Manager, Sales, who was also present, said.
Market for utility vehicles was pegged at around 5.5 lakh units and the sales of pick-up trucks (two to three and half tonnes capacity) were estimated to be around two lakh units a year, Joshi said.
"Pick-up trucks have a high share in the CV segment. We expect the share to increase further from the present 35 per cent," Joshi said.
The company would manufacture around 50,000 units from its new plant in the first year at Sri City near Chennai, which would commence production in 2016, Kishimoto said adding that Izuzu was currently importing from its Thailand plant.
The Rs 3,000 crore new plant would have the capacity to produce one lakh to 1.2 lakh units a year,he said.
The company would unveil its new pick-up truck at the Auto Show scheduled in Delhi in February.