Isuzu V-Cross cheaper in Andhra Pradesh as the Japanese brand has been awarded five years of tax exemption on sales in the southern state by State Government
Andhra Pradesh government exempts Isuzu vehicles from paying Motor Vehicle tax in the state. The exemption is applicable for the next five years and it is implemented from 18th November, 2016. The customers of Isuzu vehicles in the state will get the benefit till 31st March, 2021. Earlier this year, the automaker started local manufacturing of its vehicles in Andhra Pradesh, with an investment of Rs. 3,000 crore.
The passenger vehicles in the state have to pay 14% of invoice value as one time tax, while the commercial pickup trucks have to pay Rs. 800 per year, during the vehicle’s lifespan. With the tax exempted now, customers of Isuzu vehicles in the state of Andhra Pradesh are surely going to be benefited.
The company presently sells D-Max range of pick-up trucks and MU-7 SUV in the Indian market. It rolled out the made-in-India D-Max V-Cross pickup truck in April this year, from its manufacturing plant in the SriCity, Andhra Pradesh. This state-of-the-art facility is spread across 107 acres and it has a production capacity of 50,000 units per year at present, which can be increased up to 1,20,000 units.
Presently, the D-Max pickup trucks are being manufactured with 70% localization for domestic market. Isuzu says, the localization ratio will be increased with time and the company also plans to export the cars from here, in near future. The automaker has a plan to make this production facility a global manufacturing hub in future, while in India it wants to strengthen its presence gradually.
The Japanese automaker claims that, its SriCity plant follows the company’s global manufacturing standards and Isuzu Manufacturing Management (IMM) system. The plant is also claimed to be dedicatedly focused on safety and quality of the vehicles. The Isuzu eyes to grab a good share in the pickup truck market in India. Also, it will launch new vehicles to cater the other segments as well.