The company, which had acquired 107 acres of land in 2013 for the plant, is likely to commence commercial operations by early 2016 with an initial initial production capacity at 50,000 units per year.
"It is an important and exciting day for us since we have broken ground at Sri City. India is a key region in Isuzu's global growth strategy for its emerging markets and as an important manufacturing hub in the future," Isuzu Motors India President and Managing Director Takashi Kikuchi said.
"We will look at exporting from this plant," he said.
The production capacity of the plant, which is expected to generate 2,000-3,000 jobs, could be scaled up 1.20 lakh units per year.
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"India is a key region in Isuzu's global growth strategy for its emerging markets and as an important manufacturing hub in the future. Our focus is to accelerate our business and establish Isuzu as an important player in the pickup trucks and utility vehicles market in India," Kikuchi said.
By the end of March 2014, the company will have presence in nine cities with exclusive dealerships in Chennai, Hyderabad, Coimbatore, Cochin, Bangalore, Tirupati, Vishakapatnam, Madurai and Delhi.
The Japanese auto maker, which has imported and sold 200 units of its sports utility vehicle MU-7 and pick-up truck D-Max, plans to launch BS IV version of the pick up truck at the upcoming Auto Expo to be held between February 5-11.