Japan: Isuzu aiming for 50% lift in operating profit under new mid-term plan
Wednesday, August 29, 2007, AutomotiveWorld.com
Isuzu says it is aiming to lift its operating profit by 50% and will increase capital expenditure under a new three-year business plan, MarketWatch reports.
Isuzu says it expects "dramatic" growth over the midterm, by advancing further into emerging markets such as China and Russia and taking advantage of its alliance with Toyota.
The OEM aims to generate group operating profit of ¥150bn (US$1.31bn) in the fiscal year ending March 2011, compared with ¥100bn forecast for this fiscal year. As per the new mid-term business plan, the company aims to increase its overseas presence and expand its global vehicle range to achieve group sales of about ¥2tr for the fiscal year ending March 2011.
For the fiscal year ending 31 March 2011, Isuzu is also targeting overseas truck sales of 350,000 units, up 64% from its forecast for this fiscal year.
The Associated Press says the company has not set a target for sales volume in Japan. There, the market is expected to remain sluggish over the next few years as the replacement demand for more environmentally-friendly trucks is believed to have peaked. However, Isuzu aims to maintain a 35% market share for mid range trucks and a 43% market share for light-duty trucks.
The company intends to focus more on pickups, for which demand is rapidly growing, particularly in countries such as Thailand. It aims to sell about 420,000 pick-ups in the year to March 2011.
Isuzu also aims to enhance sales of its diesel engines by expanding their use, including in passenger vehicles and industrial machinery.
Further, in a move aimed at reducing costs for developing environment-friendly trucks, Isuzu and Hino also recently announced that they will jointly develop an exhaust gas after-treatment system for diesel engines as well as heavy-duty truck cabins.
As per the mid-term business plan, Isuzu will also boost its capital expenditure to ¥230bn over the next three years.
Published on Wednesday, August 29, 2007
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