Japanese automotive giant, Isuzu Motors India Private Limited has announced its plans to set up a new manufacturing facility for producing pick-up trucks and sport utility vehicles (SUV) in the southern Indian state of Andhra Pradesh.

The company has signed Memorandum of Understanding (MoUs) with the Andhra Pradesh government and Sri City industrial park for setting up a manufacturing facility. The plant will be located at the special economic zone in South of AP's Chittoor district called Sri City industrial park.

Deputy Managing Director Shigeru Wakabayashi said that the maker of car, commercial vehicle and heavy truck said that it would invest Rs 1,500 crore during the coming five to seven years on setting up the plant.

Wakabayashi also said that the plant will have annual capacity of 1.2 lakh units and about a fourth of that would be exported to foreign markets. "We plan to sell some 80,000 units in the domestic market, which is growing at a healthy pace on the back of steady economic growth, and export some 40,000 units," he said.

Isuzu Motors, which is headquartered in Tokyo, already has manufacturing facilities in Thailand and China and it sells its vehicles in more than 100 countries around the world.