[🇧🇩] Automobile Industry of Bangladesh including parts

[Saif]

Jaecoo and Omoda are sub-brands of Chery cars from China. As such quality should not be too bad. For myself - Chinese cars are still a bit of a question mark. More sold on major global brands.

Bangladesh has been importing Japanese cars since its independence but Japan hasn't established car manufacturing plants in Bangladesh so far. The Govt. should open the local automobile market for China and restrict Japanese cars in the market. This way we would be able to draw huge Chinese investments in our automobile sector. What do you say?

 

[Saif]

Bogura emerging as a hub for used automobiles

A major hub for the sale and repair of motor vehicles has gradually emerged in Bogura over the past two years, drawing an estimated investment of Tk 1,000 crore.

www.thedailystar.net

Bogura emerging as a hub for used automobiles

A five-kilometre stretch of road along the Baragola-Matidali highway in Bogura has quickly turned into a hub for automobiles, with numerous showrooms and auto-repair workshops offering their services. The biggest draw, however, remains used cars, which can be bought for cheaper prices than in Dhaka. Photo: Mostafa Shabuj

A major hub for the sale and repair of motor vehicles has gradually emerged in Bogura over the past two years, drawing an estimated investment of Tk 1,000 crore.

At least 15 showrooms and 20 workshops offering repairing services have been established along a five-kilometre stretch on the Baragola-Matidali highway.

New and reconditioned vehicles of renowned brands, including BMW and Mercedes-Benz, are also available here.

However, cars that have changed ownership multiple times are a big draw, with overall monthly sales reaching at least Tk 10 crore.

To read the rest of the news, please click on the link above.​

 

[Bilal9]

Luxury sleeper bus bought by a bus transport operator from Pabna, which is a second-tier town in Bangladesh. They have four in the fleet now.

Each of these Made in Bangladesh buses cost 49 lakh to build, both of them added up to one crore. The buses boast upholstered luxury leather beds and articulating seats.

 

[Saif]

Luxury sleeper bus bought by a bus transport operator from Pabna, which is a second-tier town in Bangladesh. They have four in the fleet now.

Each of these Made in Bangladesh buses cost 49 lakh to build, both of them added up to one crore. The buses boast upholstered luxury leather beds and articulating seats.

I guess people have to pay hefty bus fares to travel in these luxurious buses.

 

[Bilal9]

I guess people have to pay hefty bus fares to travel in these luxurious buses.

Yes that is the case. People's disposable income has gone up considerably, so they can afford to pay these kind of fares, even riding luxury sleeper buses to 2nd and 3rd tier towns.

 

[Saif]

Malaysia can fully manufacture Perodua car in Bangladesh: PM

Prime minister Sheikh Hasina on Wednesday invited Malaysia to set up facilities to fully manufacture their Perodua brand car in Bangladesh...

www.newagebd.net

Malaysia can fully manufacture Perodua car in Bangladesh: PM
Bangladesh Sangbad Sangstha . Dhaka 25 July, 2024, 00:04

Prime minister Sheikh Hasina on Wednesday invited Malaysia to set up facilities to fully manufacture their Perodua brand car in Bangladesh.

She made the call when outgoing Malaysian high commissioner here Haznah Md Hashim paid a farewell call on her at her office this morning.

In the meeting, the envoy said that local PHP Motors was assembling Malaysian brand, Perodua car here.

Prime minister's press secretary Md Nayeemul Islam Khan briefed the reporters after the meeting.

PHP Motors, a concern of PHP Family, has tied up with Perodua, a top Malaysian automobile brand, to assemble their cars and SUVs in Bangladesh and sell those in the local market.

In the meeting, the premier and the envoy also talked and remembered the longstanding and continuing relationship between two countries from the tenure of father of the nation Bangabandhu Sheikh Mujibur Rahman.

About the issue of anarchic situation unleashed by BNP-Jamaat behind the quota reform movement of student, Hashim told the premier that, 'I've confidence in your ability in handling the current situation. You're tackling the situation well and it is purely Bangladesh's internal matter.'

'She (the envoy) sees everything is under control,' said the press secretary quoting the envoy as saying.

The high commissioner said that Malaysian business entities' cumulative investment rose to $5 billion in Bangladesh, which mainly propelled by the two telecommunication companies- Robi and Edotco Bangladesh as they reinvested their profits here.​

 

[Saif]

Assembled by Meghna, three brand new KIA SUVs hit the road

Meghna Automobiles, the automotive arm of Meghna Group, began selling three locally assembled sport utility vehicles (SUVs) of South Korean automobile manufacturer KIA recently.

www.thedailystar.net

Assembled by Meghna, three brand new KIA SUVs hit the road

Meghna Automobiles is all set to roll out three models of KIA cars that are being assembled at its factory in Barmi of Gazipur. The three models are all sport utility vehicles with engine capacities of 1,500cc to 2,000cc. PHOTO: COLLECTED

Meghna Automobiles, the automotive arm of Meghna Group, began selling three locally assembled sport utility vehicles (SUVs) of South Korean automobile manufacturer KIA recently.

According to officials, the official launch of the three cars is scheduled to be held soon.

The SUVs are the 1,500cc Seltos, 1,500cc Carens, and 2,000cc Sportage, said Anisuzzaman Choudhury, executive director of Meghna Automobiles.

The Seltos and Carens models were showcased at the Dhaka Motor Show in May this year.

Choudhury said Meghna Automobiles has already obtained type certification for the cars from the Bangladesh Road Transport Authority (BRTA).

Type certification is a mandatory specification for locally assembled cars to be sold in the market.

"We are now ready to launch the vehicles officially," he said. "Our goal is to provide brand-new passenger cars at a lower price than it would cost to import."

Meghna Automobiles established its assembly plant for completely knocked down (CKD) cars on 15 acres of land at Barmi union of Gazipur at a cost of Tk 275 crore, which is equivalent to around $25 million.

According to Choudhury, the price of locally assembled Seltos is around Tk 43 lakh compared to around Tk 52 lakh for those imported as completely built-up (CBU) units.

Similarly, the locally assembled Sportage costs Tk 58 lakh while the CBU unit is priced at Tk 78 lakh.

Choudhury said prices of brand-new locally assembled cars are expected to be Tk 10-12 lakh lower than those imported as CBU units.

However, the sharp depreciation of the local currency taka against the US dollar has limited the price drop to only Tk 8 lakh per unit, he said.

As per Bangladesh's automobile policy, there are lower customs duties on importing various components of vehicles for assembly purposes, he added.

Regarding the quality of locally assembled KIA cars, Choudhury said Korean engineers and technicians would operate the Gazipur assembly plant for the first two years to ensure original quality.

By that time, local engineers and technicians will have built up efficiency and ensured quality, he said.

Currently, Hyundai, South Korea's leading automobile manufacturer, Malaysian automotive company Proton, and renowned Japanese manufacturer Mitsubishi assemble passenger cars in Bangladesh.

According to market insiders, imported reconditioned Japanese cars dominated the local automobile market while brand-new cars hold around 18 percent of the market share.

Referring to market assessments, Choudhury said brand-new cars would dominate the market by 2030 as user awareness and affordability increase.

He said customers do not need to renew the fitness certificate for five years after the purchase of a new car. In contrast, reconditioned cars require annual fitness certificate renewals.

According to BRTA data, an average of 22,000 to 24,000 passenger vehicles, have been sold per year since 2014.

Choudhury said KIA and Meghna Automobiles teamed up to assemble cars in Bangladesh after observing the growing market for brand-new cars, focusing on SUVs to capture the expanding market.

According to him, Meghna Automobiles has the capacity to assemble 7,000 cars per year but will initially assemble 3,500 units per year.

Besides, Meghna will ensure the availability of spare parts and sufficient service centres across the country.​

 

[Saif]

Automobile sales drop amid economic downturn, political jitters

Automobile sales have dropped substantially since July this year amidst the economic downturn and political turmoil, denting any hopes of recovering from last year’s slump, according to market insiders.

www.thedailystar.net

Automobile sales drop amid economic downturn, political jitters

Automobile dealers have seen their sales decline almost 70 percent since July as political turmoil and economic concerns weigh on consumers’ minds. High interest rates on auto loans and a lack of law and order are other reasons for the drastic fall in sales. Photo: Star/file

Automobile sales have dropped substantially since July this year amidst the economic downturn and political turmoil, denting any hopes of recovering from last year's slump, according to market insiders.

Although credible data is hard to come by, vehicle dealers estimate that monthly sales have fallen by at least 70 percent.

In other words, around 400 to 450 vehicles were sold per month since July compared to 1,700 to 1,800 in the first six months of the year.

One way of verifying sales is through the number of vehicles registered with the Bangladesh Road Transport Authority (BRTA).

Around 1,747 automobiles were registered on an average per month in the January-June period this year. However, data for the subsequent months is yet to be made available.

In 2023, 8,549 were registered in total. The number stood at 23,651 in 2022.

Needless to say, these figures exclude a small fraction of people who delay registering new vehicles.

Although normalcy has been returning since the interim government came to office following the ouster of the Awami League government on August 5, potential buyers may prefer waiting it out a bit longer, according to the vehicle dealers.

"We did not imagine that this type of dull market could suddenly come about," said Shafiqul Islam, head of operations at HNS Automobiles.

"We expected sales to grow this year, but the sudden political change has reversed the calculations of the market," he said.

Besides, the Japanese yen has grown stronger against the US greenback, increasing duties and turning vehicles costlier. Prices have increased by Tk 1 lakh to Tk 1.5 lakh in the last two months, Islam added.

High interest on auto loans is also discouraging purchases while dealers are refraining from releasing imported vehicles from the Chattogram port due to a capital shortage, he said.

Bank loans are also big burdens for vehicle dealers, he said.

Monthly sales have declined by around 70 percent since July due to the political changeover and people's apprehensions about the economy, said Habib Ullah Dawn, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA).

Nowadays, people are mostly purchasing sedans such as Toyota Axios and Corollas. The sales of SUVs have been very slow, Dawn said.

Potential customers are taking time to observe the situation before deciding to make a purchase, he said.

Besides, law and order are yet to be fully restored, he said, adding: "If there is a big improvement in the situation, the market will change within the next three months."

According to Dawn, the situation is improving, which is good news for the car market.

He also pointed out that dealers were facing challenges in paying staff salaries and showroom rent due to the drop in revenue.

"We suffered a lot during the Covid-19 pandemic but recovered rapidly, so we are optimistic of recovering from these ongoing difficulties," he said.

Arif Khan Bipu, managing director of Motors Bay, an importer and retailer of reconditioned Japanese cars, said importers and retailers with large-scale operations had suffered a larger drop in sales compared to smaller ones.

According to him, sales of the big retailers declined by 70 percent since July whereas it was around 40 percent for small retailers like him.

He said the overall market situation was not favourable for the purchase of passenger vehicles by middle-income people due to the ongoing transitional period for politics and economic turmoil due to high inflation and high auto loan interest rates.​