Isuzu Targets Growth in Emerging Markets

Isuzu Motors Ltd. is investing in local production and new dealerships in China, India and other emerging markets, The Nikkei notes.

The initiative seeks to offset soft sales in the company's main markets in Japan and Thailand. The newspaper notes the required investment explains Isuzu's predicted 6% decline in net profit to 110 billion yen ($921 million) in the current fiscal year that began April 1.

Isuzu expects the expansion will boost its sales in China 60% in fiscal 2017. Over the same period, the company anticipates a 30% jump in volume elsewhere in Asia, excluding Japan and Thailand.

Isuzu forecasts its revenue will climb nearly 20% to at least 2.2 trillion yen ($18 billion) in fiscal 2017 compared with the current year. But it says its aggressive spending program will leave the company's operating margin unchanged at 9%.