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Last updated: 14 Jul, 2015  

wakabayashi-dmd-isuzu-indiaTHMB.jpg Isuzu Motors India tells SMEs to 'Go More, Do More and Get More'

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Saurabh Gupta | 14 Jul, 2015
Targeting especially the Indian Small and Medium Enterprises (SMEs) in the pick-up segment of various sectors including Food & Catering, Perishables, Hardware, FMCG, etc., Isuzu Motors India aims at enabling their customers to 'Go More, Do More and Get More'.

In an exclusive interview to SME Times, Deputy Managing Director, Isuzu Motors India, Shigeru Wakabayashi said, we are offering our customers a comprehensive range of options to choose from, meeting specific needs and requirements of different businesses. Customers are becoming more nimble-footed while choosing a product for their business. They are rather becoming more 'value-conscious' than 'cost-conscious'. A product that befits their need appropriately and at the same time reduces their operational cost and maximises productivity will certainly improve their business viability.

Isuzu Motors India Private Limited is a subsidiary of Isuzu Motors, Japan, one of the world's largest commercial vehicle manufacturers and a leader in pick-up trucks as well as diesel engines. Setup in India in 2012, the company has Isuzu D-MAX for the logistics and cold chain segment, which is one of the largest selling pickup trucks world-over known for its legendry durability and performance. And recently Isuzu launched two new variants of D-Max- Air-Conditioned and Cab-Chassis variants.
Excerpts of the interview...

Isuzu has recently rolled out two new variants of D-MAX. With this launch what exactly are you offering to your customers in India?
Shigeru Wakabayashi: With the roll-out of Isuzu D-Max Air-Conditioned and Cab-Chassis variants, we are offering our customers a comprehensive range of options to choose from, meeting specific needs and requirements of different businesses. India, being a tropical country, customers in the segment look for comfort features that enhance productivity while reducing fatigue. The ISUZU D-MAX with Air-Conditioning will be the perfect choice for the business. Factory built Air-Conditioned variant will be available in the ISUZU D-MAX Single Cab Flat Deck model. On the other hand, the Cab-Chassis variant is a perfect partner that provides customers' the flexibility to choose their load-body configuration and maximize value across various businesses such as Food & Catering, Perishables, Hardware, FMCG, etc. This is an important development and an extension of our product offering in the pick-up segment, enabling customers to 'Go More, Do More and Get More'.

I think for D-Max, your targeted buyers would be small and medium entrepreneurs in India, like entrepreneurs such as food & catering, perishables, hardware and FMCG. How you analyze the Indian SME sector as your prospective customers?
Shigeru Wakabayashi: Yes, we have segmented our customers into various category of businesses. The ISUZU D-MAX offers value across businesses, thanks to its class leading features, making itself one of the most competitive pick-up trucks in the country. Customer in these segments prefer products that meet their varying business requirements. For instance, we have begun selling the Cab-Chassis variant in the Isuzu D-MAX. Since the Cab Chassis offers the flexibility to the customer to build different types of bodies for different applications, this variant has substantial potential. Varied types of uses of a pick-up truck such as Refrigerated Vans, Cash Vans and few other applications cannot be built on the existing Flat Deck offered by manufacturers. As India focusses more and more on efficient logistics chains, the use of refrigerated pick-up trucks will help in reducing wastages and increase effective deliveries of processed foods. Refrigerated Pick-up trucks are on the increase and are being increasingly sought, for efficient delivery of Processed Meat, Ice Cream/Milk Products, Medicines, etc. We are witnessing an increase in number of customers looking for Cab-Chassis variant that offer them the flexibility to build their own load bodies suiting their varying business requirements. Besides, the ISUZU D-MAX Single Cab Flat Deck will now be available with a factory built Air-Conditioned variant to offer customers more comfort and a fatigue-free driving experience. In a tropical country like India where temperatures soar, an air-conditioned vehicle helps reduce fatigue and increases productivity.

If you consider the SCV segment under the LCV category there is a definitive shift happening within. The volumes are slowly but steadily shifting towards pick-ups with 3.5 t GVW. This is owing to additional advantages that pick-ups provide both in terms of load carrying capacity and better turnaround. This is because the cities are expanding laterally with urbanization and the government's newly proposed 'SMART' cities & 'AMRUT' scheme will certainly add much needed fillip to the sector, helping the businesses in being able to cover more territory with increasing effectiveness.

When we talked about SMEs in India, first thing comes to our mind is cost. SMEs are very much conscious about running cost, after sale services etc. How will you attract them?
Shigeru Wakabayashi: Yes, the Indian market is unique and price sensitive. However, we are increasingly witnessing a paradigm shift amongst customers and their usage patterns. Customers are becoming more nimble-footed while choosing a product for their business. They are rather becoming more 'value-conscious' than 'cost conscious'. A product that befits their need appropriately and at the same time reduces their operational cost and maximises productivity will certainly improve their business viability. The ISUZU D-MAX is one such offer from us which fulfils every need of a customer.

ISUZU D-MAX has proved its mileage in the Indian market through the Isuzu 'Max Run Challenge'. A global initiative by Isuzu, that assess the fuel-efficiency, durability and performance of the vehicle. Began in September 2014, the Isuzu 'Max Run Challenge' completed its 3rd edition of the challenge from Lucknow to Kolkata covering a distance of 1000 kms achieving a mileage of 20.42 km/litre. Apart from fuel efficiency aspect, the Isuzu D-Max vehicle is designed with in-built features that support the refrigerated applications, thereby reducing the need for retro-fitment.

On after sale service part, we have our dealer outlets equipped with 3S (Sale, Service & Spares) facility which ensures our facilities are one stop shop for vehicle related all needs of our customers. Additionally we have designed mobile service vans also to cater to the needs of the vehicle owners in the rural and far flung areas.

Also tell something about your dealer network in the country and what are your future plans in this direction?
Shigeru Wakabayashi: Isuzu is rapidly expanding its dealer network in the country and has plans to open 60 outlets across India by end of 2015-16. Isuzu currently has 23 dealership facilities at Delhi, Noida, Jaipur, Mumbai, Chennai, Bangalore, Hyderabad, Coimbatore, Madurai, Visakhapatnam, Tirupati, Cochin, Calicut, Ahmedabad, Rajkot, Ludhiana, Lucknow, Gurgaon, Indore, Vadodara, Kolkata, Jalandhar and Jodhpur.

In a tropical country like India where temperatures varies with bumpy roads. How these two variants are capable for meeting such volatile requirements of our country?
Shigeru Wakabayashi: Along with two newly launched variants, one of the largest selling pickup trucks world-over, Isuzu D-Max range is currently available in three variants - Single Deck Flat Deck, Space Cab Flat Deck and Space Cab Arch Deck in India.

The Cab-Chassis variant will fulfil the needs of customers' operating vehicle applications across various businesses such as Food & Catering, Perishables, Hardware, FMCG, etc. Such customers will now have the flexibility to construct their own load-bodies suiting their business requirements. This variant will be available in the Isuzu D-MAX Single Cab model. Further the D-Max is the most suitable vehicle for Cold-Chain applications due to its higher power and other features. Again in India where temperatures are usually above 25 degrees in most places and most times of the year, the need for a highly efficient refrigerated pick-up gains significant importance. Efficiency improves performance and reduces wastage and on this the Isuzu D-Max scores over the rest with great advantage.

What are your plans to become a major player in a segment where Tata Motors, Ashok Leyland and M&M dominate?
Shigeru Wakabayashi: The Indian pick-up market recoded sales of around 200,000 units in FY 2013-14 and this is expected to grow to 800,000 units by 2023. This is good news for us at Isuzu Motors India.

We at Isuzu Motors India have spent a considerable time to understand the Indian market, consumer's driving habits, average speed and braking pattern. This learning has helped us to introduce a flat deck pick-up tailored to Indian market with a locally sourced body. Also our recently introduced two new variants offers buyers more comfort and are targeted at vehicle applications across various businesses including food & catering, perishables, hardware and FMCG.

The Indian market will move towards powerful pickups as it matures and ISUZU D-MAX has the most powerful pickup (134hp) with its range offering nearly twice the horsepower of its competitor. Once our manufacturing plant is in place, we will launch a major localization drive that will make our vehicles even more cost competitive and allow us to rapidly increase market share. We will begin with 70% localization and drive it up to 100% within next three years.

What is your annual production target for coming year - 2016?
Shigeru Wakabayashi: Currently we are catering to our demands by a contract manufacturing agreement with Hindustan Motors, we entered in 2013. By the end of the first quarter of 2016, our manufacturing plant will be ready at Sri City, Chitoor District, Andhra Pradesh. This new facility is likely to commence commercial operations with the initial production capacity at 50,000 units/ year.

How you see India's 'Make In India' programme? Do you have expansion plans in this direction too? Please share.
Shigeru Wakabayashi: Make in India is a wonderful scheme proposed by the government for this vastly populated and diverse country. Expanding economy and growing cities presents a great opportunity for Isuzu Motors India to become a key player in this market.

Our Indian operation started with import of limited number of CBUs from Thailand in 2012 and today we are working hard to launch our Made in India D-Max pick-up trucks by early next year. We have earmarked Rs. 3000 crore for our manufacturing plant at SriCity in Andhra Pradesh which will start operation by end of the first quarter of 2016 with 70% localization. We aim to achieve 100% localization gradually in the next three years of the start of production.
 
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