Bangladesh
is making an enormous improvement in almost every sector that would contribute
to its economic and political growth, including the manufacture of world-class
electronics, steel, and glass. The one sector where Bangladesh is almost
entirely sluggish is the automotive sector.
Present the scenario of Bangladesh Automobile Industry, sales of Toyota cars, imported from Japan, is constantly increasing in Bangladesh. Even for commercial vehicles, this is still the most used brand. Even though there is a lack of local car manufacturers, a state-run company named Pragati Industries Limited has been manufacturing vehicles for Japanese company Mitsubishi at a low rate. The country is currently assembling the Mitsubishi Pajero Sport, Hino bus, and also the Tata bus and motorcycles. The market of Bangladesh is alluring to investors at home and abroad and has the potentiality of making a significant profit. There are foreign companies that are showing interest in investing in the automobile industry in Bangladesh. Many big companies like Tata Motors have come forward with investment initiatives. Tata Motors, in partnership with Bangladesh-based Nitol Motors launched its Prima range of heavy commercial vehicles (CVs) in Bangladesh. Then again, a Swedish automobile giant Volvo Group will market new generation trucks in Bangladesh, in a joint venture with Indian Eicher Motors. With the launch, the Eicher brand enters a new phase of growth and consolidation in the commercial vehicle market. The distributorship of Eicher Trucks in Bangladesh is managed by Runner Motors Limited, an arm of Runner Group.
Moreover, a domestic company of Bangladesh PHP, a business conglomerate based in Chittagong signed a deal with Malaysian automobile manufacturer Proton to set up an industry with a capacity of manufacturing 1,200 cars per year. The company is investing BDT 4,000 million in the project employing several hundreds of workers with 50 engineers. Even the Society of Indian Manufacturers (SIAM), an apex industry body representing leading vehicle and vehicular engine manufacturers in India is forwarding their helping hand towards Bangladesh to strengthen their automobile manufacturing base. SIAM hosted the first-ever three days Indo-Bangladesh Automotive Show in the city to unite the automotive industries of both countries.
In Bangladesh, few large car plants assemble the Mitsubishi Pajero Sport, Hino bus, Tata bus & motorcycles, etc. Some top automobile assembling & manufacturing companies in the Country are Uttara Motors Ltd, Nitol Motors Ltd., S.R Motors Ltd., Akij Motors, Pragati, Bangladesh Machine Tools Factory, Aftab Automobiles, TVS Auto Bangladesh Limited, HS Enterprise, TATA Motors Bangladesh (Joint Venture with Nitol- Niloy Motors Ltd), Atlas Bangladesh Ltd., Walton Hi-Tech Industries Limited, Runner Automobiles, Singer Bangladesh Limited, Bangladesh Honda Private Limited, Rangs Motor's Ltd., Rahimafrooz Global Limited, Chisti Engineering & Mechanical Works, Jonata Auto Mobile Parts, Ifad Autos Limited, and HNS Automobiles Ltd.
From an international perspective, in 2016, there has been growth in the sales of cars which has been led by China, the largest growing economy in the world, which gained 13 percent sales with 3.2 million additional vehicles. Among other major economies, the European Union and US market gained 1.1 million or 7 percent and 70,000 or 0.4 percent sales, respectively. The overall sales of vehicles have increased from 90 million in 2015 to 94 million in 2016. According to the world cars brand ranking 2017, it has been found that Toyota, the market leader, achieved 1.35 million units’ sales (+8.7 percent) along with 9.5 percent global market share in the first two months of 2017, followed by Volkswagen with 1.036 million sales (+2.1 percent) and Ford 896,000 sales (-2.9 percent).
Bangladesh, around 80% of the cars are imported from Japan. In Bangladesh, as the vehicle moves on the left-hand side of the road, so, imported vehicles should be right-handed driven. According to the regulation of the Bangladesh government, import of used cars, jeeps, microbus, minibus including other old vehicles & tractors are allowed. In Bangladesh, an imported vehicle should not be more than four years old. It should be JAAI (Japan Auto Appraisal Institute) certified. In Bangladesh, used vehicle taxes are levied on vehicles when imported. Only Diplomats get duty free import of one used vehicle in Bangladesh.
In Bangladesh, most of the cars have been imported. Present supplementary duties for imported regular & hybrid car are given below:
The motorcycle assembling & manufacturing companies have to pay 20 percent supplementary duty on imported parts & components. It will help motorcycle assemblers to integrate backward more easily. The importers of Human Hauler have to pay 25 percent customs duties & 30 percent supplementary duty.
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