Isuzu, Munjals talk 4-wheeler foray

JAPANESE truck and sports utility vehicle-maker Isuzu is understood to be talking to the Munjal family of Hero group for a possible foray in the Indian market. The company — which currently supplies engines to several Indian players and Tavera kits to General Motors India — has a technical tie up with Sumitomo in commercial vehicle company Swaraj Mazda. According to sources in the auto industry, although the talks are on, it’s still not clear whether the Hero four-wheeler venture will focus on SUVs and cars or commercial vehicles. When contacted by ET, Isuzu ASEAN operations group leader Kenji Matsuoka said: “I cannot disclose anything on this subject. I don’t say yes and I don’t say no.” For his part, Hero Corporate Services chairman Sunil Kant Munjal said: “We look at several new businesses from time to time. At any given time there are 10-15 opportunities that we are looking at. So we can neither confirm nor renounce this issue. All we can say is that on the four-wheeler project we are nowhere near taking a decision.” The $3-billion Hero group recently announced its intention to get into the four-wheeler business. It’s current partnership with Japanese major Honda is restricted to two and three-wheelers only. Auto industry sources say if the talks to Isuzu take off, it would put an interesting spin to the Hero group’s relationship with long-time partner Honda. Indeed, Honda’s comfort level with Hero’s four-wheeler partner could also determine the Munjal family’s final choice. Isuzu has been sniffing around for opportunities in India, say sources. One of the rumours doing the rounds is that it may also take some stake in Sumitomo-controlled Swaraj Mazda where it currently just has a technical collaboration. However, there has been no confirmation of this news so far. Isuzu already has a brand presence in the country thanks to its engines gracing products like the M&M Invader, the HM Ambassador and more recently the Rhino SUV from Sonalika. The Hero group isn’t the only two-wheeler major to be talking four-wheelers. Already arch rival Bajaj Auto has announced it will crank out a range of ‘lite’ goods carriers and will showcase a lite concept car at the Auto Expo next year. With the competition in the motorcycle market getting cut throat and the rate of growth slowing down, players are looking at expanding their product portfolio. That’s where the interest in four-wheelers comes in.

Courtesy: EconomicTimes