The Indian unit of Isuzu Motors has said that it is planning to invest Rs 3,000 crore at its manufacturing plant in Andhra Pradesh.

A senior company official said that the company will make the investment during the coming five years in the south Indian state.  The company will begin the construction for the plant at Sri City this month, according to, Isuzu Motors India president and managing director Takashi Kikuchi.

"As a first step, we will have a production capacity of 50,000 when we start production in 2016.  Within three years, we will try to increase to 80,000.  That is 2018-19.  By 2020, we would like to increase further up to 100,000.  That is the target for the time being," he said.

Isuzu already has a contract manufacturing agreement with Hindustan Motors Ltd and  HML is assembling CKD kits of Isuzu's sports utility vehicle MU-7 and pick-up truck D-Max at its Thiruvallur, Chennai plant.  The localisation of production is expected to be through within three years after 2016.

The company has said that complete localisation will be achieved in 2018.