Local motorcycles could grab Asia market

http://www.theindependentbd.com/business/others/88442-local-motorcycles-could-grab-asia-market.html

Local motorcycles could grab Asia market

A Bangladesh-manufactured Walton Motorcycle. Source: http://www.waltonbd.com/index.php/pages/phandler/single_product/pid/2/id/61

Author / Source : STAFF REPORTER

DHAKA, JAN 5: The country’s emerging motorcycle industry could grab a significant portion of the Asian market if provided with proper government policy support, stakeholders said on Thursday.

The manufacturers, importers, dealers involved in the motorcycle industry demanded access to finance, energy security and infrastructure development to continue the industry’s impressive growth, which was 25 per cent last year. The stakeholders were speaking at a meeting on “Developing policy guideline for basic motorcycle manufacturing industry in Bangladesh” organised by International Business Forum of Bangladesh (IBFB) in the capital.

Md Mojibur Rahman, chairman of Bangladesh Tariff Commission, was present as the chief guest. ABM Khorshed Alam, additional secretary at the Ministry of Industries, Md Shah Alam Khan, member (Customs), National Board of Revenue, and Mahmudul Islam Chowdhury, president of IBFB, were also present.

M Kamal Uddin, director of Institute of Appropriate Technology, BUET, presented a keynote paper at the meeting.

“The tariff policy needs revision, especially the supplementary duties has to be reduced,” said Md Lokman Hossain, international marketing manager of Walton Automobiles, leading motorcycle manufacturer of Bangladesh.

“The bicycle industry gets 15 per cent cash incentives for exports, but we aren’t getting any. We have manpower and technology. We only need government’s support,” Hossain said. The raw material procurement policy and technology transfer mechanism should also be in place to rev up the industry growth, he added.

Motorcycle sales each year in the developing countries account for 90 per cent of the world consumption, Kamal Uddin in his paper said.

“Honda Motors of Japan dominated the Asian motorcycle industry because of their strong R&D, proper management and innovation,” Kamal said. The government has to formulate technology development and innovation policy and national skill committee to develop skilled manpower for this sector, he added.

China is currently leading the motorcycle production in Asia, accounting for 50 per cent of the total production of 17 million units per year.

India produces 5 million, Japan 1.5 million and Vietnam 2 million units per year.

Bangladesh motorcycle industry is one of the fastest growing industries in the country. Stakeholders are expecting a 25 per cent annual growth in the next five years.

The domestic demand is met by imports from Japan, India, Taiwan, China and Pakistan.

Kamal said a regulatory body should be formed inside Bangladesh Road Transport Authority (BRTA), with representations from FBCCI, BSTI, NBR and BUET, to coordinate among different bodies in the industry.

Bangladesh motor industry has three types of motorcycle suppliers: importers, assemblers and manufacturers.

The industry has three divisions: CBU (Completely Build-up Unit), CKD or SKD  (Completely or Semi Knocked Down) and manufacturing. Few local enterprises like Walton Automobiles and Runner Automobiles have taken initiatives to manufacture motorcycles locally.

Road Master Ltd, Honda and Bajaj are going to set up manufacturing plants soon.

Intraco to assemble Ambassador car

http://www.theindependentbd.com/business/others/86249-intraco-to-assemble-ambassador-car.html

Intraco to assemble Ambassador car
Author / Source : Jasim Uddin Khan

Dhaka, Dec 23: Intraco group, the leading CNG conversion company in the country will assemble India’s Hindustan Motors’ iconic Ambassador car. The company management last week talked with Hindustan Motors India and advanced into an ‘in principal agreement’ in this connection.

Intraco group, the owning company of Agrabad Hotel, Chittagong is constructing a factory at Savar aiming to assemble 200 Ambassador Car per month in Bangladesh within next two years. “Initially, we will be importing the Ambassador car to Bangladesh as a complete built unit (CBU), which has already started on a trial basis. When the volume attains a certain number, we will also bring as completely knocked down (CKD). We have entered into an in-principle understanding with Hindhustan Motors India,” Riyadh Ali, Managing Director of Intraco Group said. He said the aim is to use Ambassador cars as taxicabs for Dhaka’s road.

Once widely popular for both personal and institutional use, the Ambassador lost its popularity, despite India becoming a hot spot for global car makers. The car’s diesel engines (1.5 litre and 2.0 litre) are yet to attain BS-IV emission norms, made mandatory in 13 major cities from April 2010. In 2010-11, HM sold 10,097 vehicles, compared to 11,003 in 2009-10. Sales of the Ambassador dropped to about 6,600 last year, compared to a little over 8,000 in the previous year. It has since further declined, with sales so far being only half of the previous year.

The company is working on a new-look Ambassador, with changes in both exterior and interior design, to attract the younger generation. The vehicle, which the company believes will help it stay relevant in the present market, is likely to be unveiled next year.

Intraco group started business from residential hotel to Real Estate, Shipping Lines, Cold Storage, Yarn & Dying has achieved around 150% growth from its 18 sister concerns.

Intraco to assemble India’s Ambassador cars

http://www.thedailystar.net/newDesign/news-details.php?nid=210821

Intraco to assemble India’s Ambassador cars

Industries Minister Dilip Barua launches two Ambassador cars, brought by Intraco Motors, at a programme at Sonargaon Hotel in Dhaka yesterday. Intraco announced a plan to assemble the cars of India's Hindustan Motors in Bangladesh. Photo: Intraco Motors

Star Business Report

Intraco Motors struck a deal with Hindustan Motors Ltd to assemble the Indian company’s Ambassador cars in Bangladesh, officials said yesterday.

Intraco, known for its business in CNG conversion workshops, will spend $10 million to build an assembly plant in Savar, said Riyadh Ali, the company’s managing director.

The plant will be ready soon to assemble more than 5,000 cars in the next two years, Ali said in a press briefing at Sonargaon Hotel in Dhaka. The cars with steel body could run on CNG, petrol or diesel.

Intraco introduced two Ambassador cars in Dhaka: the first — priced at Tk 22.50 lakh — is air-conditioned with a 1,800cc engine to run on petrol or diesel. The second has a 1,500cc diesel-run engine with a price tag of Tk 13.50 lakh.

Hindustan Motors started production of Ambassador cars in 1948 from a factory in West Bengal. The first version of the car, built in 1942, was based on Morris Motor Co’s Morris Oxford model. The vehicle is now powered by engines made with Isuzu Motors technology, while the shape has remained almost unchanged for more than five decades.

Industries Minister Dilip Barua attended the event as the chief guest. Acting Indian High Commissioner Sanjay Bhattacharyya and Managing Director of Hindustan Motors Manoj Jha also spoke.

Pragati’s Pajero SUV handed over to president

http://newagebd.com/newspaper1/business/40139.html

Pragati’s Pajero SUV handed over to president
Bangladesh Sangbad Sangstha . Dhaka

Industries minister Dilip Barua on Tuesday handed over the key of a modern Pajero Sports Utility Vehicle, assembled by the local automobile engineers of state owned Pragati Industries Ltd, to president Zillur Rahman at Bangabhaban in Dhaka.

On the occasion, the industries minister apprised the president that the Pragati Industries Ltd, an enterprise under the industries ministry, has recently assembled two Pajero SUVs as test run in line with its agreement with world renowned Japanese Mitsubishi Motors Corporation.

The minister informed the president that the Pragati Industries was presently working on assembling more 100 Pajero SUVs in Bangladesh to sell those commercially.

The experts of Mitsubishi Motors has issued the certificate of marketing the Pragati assembled Pajero SUVs after conducting detail quality check of the new assembled vehicles.

Dilip apprised the president that Pragati Industries Ltd was also working to assemble Sedan in Bangladesh. ‘We can be able to sell our assemble Sedans in next year,’ he said.

The minister also informed that so far Pragati assembled 30 Pajero CR-45 jeeps and of them 15 were sold to the government organisations.

President Zillur thanked all concerned with the Pragati Industries to assemble modern vehicles locally.

100 Pajero jeeps a year : Pragati

http://www.theindependentbd.com/business/others/78673-100-pajero-jeeps-a-year–pragati.html

100 Pajero jeeps a year : Pragati
Author / Source : UNB

Dhaka, Nov 4: Pragati Industries Limited (PIL), the country’s lone state-run automobile assembling industry, is ready to supply at least 100 Mitsubishi’s most modern Pajero Sports (CR 45) jeeps each year to meet the individual buyers’ demand. “We’ve signed an agreement with Rangs Motors Limited. It took effect in October. We’ll supply at least 100 jeeps each year and the number will go up in line with its demand,” PIL managing director Engineer M Ali Chowdhury said on Friday.

Chowdhury said Rangs Ltd will sell the jeeps at individual level and the price will be fixed based on the ground realities.

Talking to this correspondent, Industries Minister Dilip Barua said, “It’s just the start. We’ll put in our best efforts to expand the production volume ensuring the quality.”  On Nov 1, Dilip Barua at a function handed over the key of a Pajero Sports Utility Jeep assembled by Pragati to the Prime Minister.

On October 14, Pragati’s Pajero jeep was formally launched with a total of 30 assembled Pajero sports jeeps. Pragati has a plan to start marketing Progati-assembled Sedan car by 2012.

Mitsubishi Motors Corporation and Pragati Industries Limited signed a five-year agreement on July 8, 2010 for the production and sale of this new Pajero jeep.
The price of the jeep has been fixed at Tk 69 lakh.     UNB

Progoti eyes big as Japanese car imports drop

http://www.daily-sun.com/?view=details&type=daily_sun_news&pub_no=202&cat_id=1&menu_id=3&news_type_id=1&index=0

Progoti eyes big as Japanese car imports drop
Gets more land for expansion
Asif Showkat

The government is going to allocate more land to Progoti Industries Ltd for expanding its car assembling capacity as the state-owned venture eyes to increase its share in the local car market fallowing a fall in Japanese vehicle import.

In this regard, “Industry ministry has decided to provide 4.31 acres of land of Bangladesh Can Company Limited to Progoti to set up new machinery for the expansion of its automobile assembling capacity”, a senior ministry official said.

He also said Progoti will cash in on the opportunities brought by the tragic earthquake and subsequent tsunami in Japan, which has slashed car import from the traditional automobile importing destination of Bangladesh.

Vehicle production in Japan has already dropped by 53.6 per cent while its domestic consumption has also plummeted following the massive disaster in March this year which lashed havoc on life the economic activities in the third largest economy of the world.

“State-owned Progoti Industries Ltd will start assembling Pajero Sports car of Mitsubishi Motors from June this year while production of 1,300cc Sedan cars will begin from June 2012,” Industries Minister Dilip Barua told daily sun yesterday. For this, the state-owned industry badly needs land and equipment, he added.

He also said Bangladesh should produce automobile parts locally to save the foreign currency being spent on imports. “Land would be provided to Progoti as per the government’s plan to expand its capacity,” he said.

The industries ministry recently has asked the Privatisation Commission to drop the name of Bangladesh Can Company from its privatisation list as some portion of its land was handed over to Chittagong Nuclear Energy Centre and another portion would be handed over to Progoti.

The commission has also sent the proposal to the Cabinet Committee o Economic Affairs for its approval. It also has decided to exclude Bangladesh Can Company from the list of companies to be privatised.

The government started a project to assemble Sedan car Lancer Ex and Pajero sports vehicle in Bangladesh under a joint venture with Progoti Industries Ltd and Japanese automaker Mitsubishi Motors.

The Japanese carmaker is currently assembling Pajero Jeep V6 for Bangladesh under a deal with Progoti.

Presently, Bangladesh’s annual demand for car is around 30,000 units, dominated mostly by reconditioned Japanese cars.

Walton motorbike show from April 4

http://www.theindependentbd.com/business/others/40575-walton-motorbike-show-from-april-4.html

Walton motorbike show from April 4
Staff Reporter

Dhaka, Mar 22: For the first time in the country, Walton is going to organise a three-day motorbike show at Bangabandhu International Conference Centre in the city from April 4. The organiser claims that the show will bring to light the positive aspects of motorbikes. It ensures comfortable journey and helps to avoid traffic jams that are now posing a formidable threat to normal life style and the over all development of our country.

Different companies from home and abroad will exhibit their best models at the show  along with Walton, the country’s leading electronics, electrical and automobile manufacturing and marketing brand.

To make the show a success, Walton has already launched a publicity campaign at eight private universities and will continue the campaign at other universities in a bid to encourage students and young people.  On Sunday Walton conducted its publicity campaign on IUB campus in Bashundhara Residential area and on AIUB campus at Banani in the city.

Models Emon and Piasa were present at the programmes attended by several thousands of students. Mijanur Rahman, Walton director and international marketing expert, Shaheen Sarker, manager, and Udoy Hakim, deputy manager, of Walton creative and media department, and Enaet Ferdous, Walton adviser, were present, among others, at the programmes.

In his speech, Walton Director Mijanur Rahman said “For the first time in the country Walton is going to arrange the show with a view to popularising the motorbike use to ease traffic jam”.

There is no alternative to the use of motorbike to get rid of heavy traffic jam in the Dhaka city and ensure safe roads all over the country, he opined.

Walton is now manufacturing and marketing ultra modern technology incorporated energy saving remote control motorcycles and trying to reach the motorcycles within the capacity of young people, specially the students.

Due to world standard quality, Walton brand motorcycles are being exported to different countries of the world, he said.

Tata Motors to set up car spare parts plant in country

http://www.thefinancialexpress-bd.com/more.php?news_id=129062&date=2011-03-13

Tata Motors to set up car spare parts plant in country
FE Report

Tata Motors Ltd of India has primarily agreed to establish a spare parts industry of Tata cars in joint-venture with Bangladesh in the country.

This was disclosed Saturday at a press conference and award-giving ceremony at the Dhaka Reporters Unity in the city. The event was organised by Bangladesh Engineering Industry Owners’ Association (BEIOA).

BEIOA president Abdur Razzaque, its former president Abul Hashem, senior vice- president Abdur Rashid and vice president Ali Akbar, among others, were present on the occasion.

Abdur Razzaque said the delegates from Tata Motors Ltd had primarily agreed to establish a spare parts industry of car in Bangladesh when they visited the second Bangladesh International Industrial and Engineering Technology Tradeshow (BIET-2011) that concluded on March 5.

“Besides, the light engineering industries association of Jharkhand in India invited us to visit their industries,” said the Association leader.

He said the potentiality of the country’s light engineering sector has been boosted up through the fair.

The BEIOA was the organiser of the fair and it had achieved the goal of this fair. The participation of foreign and local investors were more satisfactory compared to the last year, said the president.

He said the visions of BIET-2011 were to reduce the gap between the entrepreneurs and the consumers and to attract foreign investment.

Around 103 engineering companies participated in the fair. Of them, 34 were foreign companies and the rest were local ones.

BEIOA awarded six light engineering industries for attractive stall decoration and best products in the BIET fair.

Mitsubishi plans big for Bangladesh

http://www.thedailystar.net/newDesign/news-details.php?nid=173566

Mitsubishi plans big for Bangladesh

From right, Yukio Okamoto, statutory auditor of Mitsubishi Motors Corporation, Osamu Masuko, president, and Romo Rouf Chowdhury, managing director of Rangs Ltd, are seen at a press conference at Sonargaon Hotel in Dhaka yesterday.

Sajjadur Rahman

Global automobile giant Mitsubishi Motors has made a bid to increase its market share in Bangladesh, which it believes has big potential to grow as an emerging market for cars.

This is part of the Japanese carmaker’s new business plan. According to media reports, Mitsubishi said it would target a 37 percent jump in sales of Mitsubishi-brand vehicles to 1.37 million vehicles worldwide by 2013/14. Mitsubishi now looks to emerging markets for its rapid expansion.

The announcement came when Mitsubishi’s net loss narrowed in the nine months to December from a year earlier as the global market recovers and cost-cutting measures helped offset the yen’s strength.

Global retail sales volume for the three quarters totalled 807,000 vehicles, up 17 percent from the same period in 2009.

In Bangladesh, Mitsubishi will start assembling sedan cars. The 1,300cc sedan cars will be the latest addition to the current Mitsubishi Pajero and Mitsubishi Pajero Sport projects in Bangladesh. State-owned Progoti Industries Ltd has been assembling Pajero vehicles since 1985.

Osamu Masuko, global president of Mitsubishi Motors, who is in the city on a three-day visit, shared his company’s expansion plan for Bangladesh with The Daily Star in an interview yesterday.

The Bangladesh government and Mitsubishi have agreed to study the possibility of the sedan-assembling project. The feasibility study will take six months to complete. Masuko said prices of the cars will decrease after local assembly but did not disclose further details on it.

The automaker will gradually transfer technology to Bangladesh to help it go into car-manufacturing in future. “Bangladesh must localise components to save foreign currency being spent on imports,” said Masuko.

Presently, Bangladesh’s annual car market is around 30,000 units, dominated by reconditioned Japanese cars.

Rangs Motors, the market leader in the branded car segment and sole distributor of Mitsubishi vehicles, has a 38.6 percent share of the new-car market.

“It is an easy target to sell 200,000 units a year in the next five to 10 years,” Masuko said considering the country’s population size and growing economy.

He believes the middleclass will get cars when more parts will be produced locally. Reduction of import duties is the present remedy, he added.

He cited the example of Korea-based Hyundai Motor that became a global player due to transfer of technology by Mitsubishi.

“It took 39 years to transfer the technology to Hyundai. If we start here today it will take at least 10-15 years to do that,” said Masuko.

Mitsubishi and Rangs have also announced the plan at a press conference at Sonargaon Hotel yesterday.

Yukio Okamoto, statutory auditor of Mitsubishi Motors, and Romo Rouf Chowdhury, managing director of Rangs Ltd, were present at the press conference.

Despite being a potential country for car-making, Chowdhury said manufacturing is not taking place largely due to an unfavourable tax structure. “The tax rate is the same for imported and manufactured vehicles,” he said.

sajjad@thedailystar.net

Sedan venture soon

http://www.thedailystar.net/newDesign/news-details.php?nid=173574

Sedan venture soon
Mitsubishi president tells The Daily Star about the motor giant’s decision on new assembling project in Bangladesh

Osamu Masuko

Sajjadur Rahman

Mitsubishi Motors Corporation decided to assemble family saloon cars in Bangladesh to tap the growing potential of the local market.

The Japanese carmaker giant also has plans to locally manufacture as many components as it can.

“We [Bangladesh government and Mitsubishi] have agreed to study the possibility of a sedan car assembling project,” Osamu Masuko, global president of Mitsubishi Motors, told The Daily Star in an interview yesterday.

The study will be concluded in six months, Masuko said.

After the feasibility study, state-owned Progoti Industries Ltd will start assembling the cars with 1,300cc (1.3 litre) engines.

The family saloon will be the third Mitsubishi vehicle, after the Pajero and Pajero Sport, to be assembled here. Progoti has been assembling Pajeroes since 1985. The Pajero Sport is expected to hit the local market in two to three months.

Rangs Motors is the sole distributor of all Mitsubishi vehicles in the local market.

Masuko, who is now in the city on a three-day visit to see progress of Mitsubishi’s ongoing and future projects, said Bangladesh would benefit from the assembly plants in terms of technology transfer.

“Bangladesh has to localise components to save the foreign currency being spent on imports,” said the company president.

He cited the example of Hyundai Motor, a Korean automaker, that has become a global player due to transfer of technology by Mitsubishi Motors.

“It took 39 years to transfer the technology to Hyundai. If we start here today it will take at least 10-15 years to do that,” said Masuko.

He believes that Bangladesh has a lot of potential in the automobile sector with its huge number of educated young people.

Bangladesh to make CNG three-wheelers

http://www.thedailystar.net/newDesign/news-details.php?nid=168779

Bangladesh to make CNG three-wheelers
Says Barua as he narrates success stories
Star Business Report

The government is set to manufacture CNG three-wheelers through state-run Atlas Bangladesh, said Industries Minister Dilip Barua yesterday.

“We are looking for prospective investors from India and China,” said Barua in his ministry’s annual performance report.

“We will implement the plan within the shortest possible time, because we got offers to make three-wheelers locally from leading manufacturers of these two countries.”

The government started a project to assemble sedan car Lancer Ex and Pajero sports vehicle in Bangladesh under a joint venture with Progoti Industries Ltd and Japanese automaker Mitsubishi Motors.

Mitsubishi will assemble the cars at Progoti’s Chittagong plant and already carried out a feasibility study. The Japanese carmaker is currently assembling Pajero Jeep V6 for Bangladesh in a deal with Progoti.

Barua said the adoption of a new industrial policy was a big success of his ministry, which envisions turning the country into a middle-income nation by 2021.

The new policy sets a target to increase the contribution of the industrial sector in GDP to 40 percent, from 28 percent now. “We hope to increase the contribution of the industrial sector to employment generation to be 25 percent from 16 percent,” he said.

Barua said a reduction in fertiliser prices was also a great success of the government. “It played a major role in strengthening the food security,” he said.

Last year, the government successfully tackled demand for fertiliser by ensuring smooth supply, said the minister. There will be no fertiliser crisis during the upcoming crop production season, he claimed.

According to the industries ministry’s statistics, the urea demand will be 2.8 million tonnes this year. The government has a stock of 800,000 tonnes and has taken measures to increase the production and import.

The minister said the import of urea from Qatar, United Arab Emirates and Saudi Arabia is going on as part of state-to-state deals. Karnaphuli Fertiliser Company Ltd also agreed to sell its production to meet the peak demand.

Although no new industries were set up in the last two years, the ministry played promoted private-sector investment to set up industries, Barua said.

“We’ve provided adequate logistics and policy support to promote private-sector investment in the industry,” he said.

State-run Pragati starts assembling Pajero jeeps

http://www.thedailystar.net/newDesign/news-details.php?nid=164682

State-run Pragati starts assembling Pajero jeeps
Each to be sold at Tk 60 lakh, import price now Tk 1.2 crore
Bss, Chittagong

Pragati Industries Limited (PIL), the lone state-run automobile assembling industry of the country, has started assembling Mitsubishi’s most modern Pajero jeep in Bangladesh.

PIL has already completed assembling of two jeeps in its own plant in Chittagong on experimental basis and is likely to go for commercial production soon.

As part of a five-year agreement, signed between Managing Director of PIL Engineer Jahir Uddin Chowdhury and Corporate General Manager of Mitsubishi’s Asia and ASEAN offices Zenichiro Nichina, PIL started assembling the Mitsubishi Jeep in Bangladesh.

The Mitsubishi authorities has also expressed their keenness to assist in setting up of a plant in Bangladesh for manufacturing spare parts of Mitsubishi jeep.

With this achievement of the state-owned industry, the customers in future will have the scope to buy a worldwide popular ‘Pajero Sports Jeep’ at around Tk 60 lakh whereas its present imported price is Tk 1.2 core.

Jahir Uddin Chowdhury told the news agency that a four-member engineers team of Mitsubishi Corporation (MC) had imparted training to Bangladeshi motor workers on assembling sports jeeps from October 18 to November 5 this year.

Chowdhury also said they had successfully assembled two Pajero jeeps and would assemble 10 more in between January and March next year.

“We will start large scale commercial production after successfully selling these 10 jeeps in the Bangladesh market, Jahir said adding that after assembling a jeep here, it would be available at only Tk 60 lakh though its present market price is Tk 1.2 crore.

Asked about its quality, he said the MC authority is determined to maintain their standard and practically assessed the quality of PIL three times through sample tests before work orders.

“No internationally reputed company wants to undermine the quality of its products wherever it is assembled,” the MD asserted.

Mitsubishi engineers after visiting the PIL in July, 2009, expressed satisfaction over its overall condition and working atmosphere.

A four-member Bangladeshi delegation from PIL including its MD visited Mitsubishi Pajero Manufacturing industry in Thailand on September 9 last year and interacted in details on different technical and infrastructure aspects at PIL.

Reciprocally, another four-member Mitsubishi delegates led by its Asia Region manger Kajuhidi Ogata also visited the Pragati Industry.

The then Gandhara Industries, now PIL, came into being with logistics supports of General Motors of England on January 20 in 1966 near Barabkunda, Chittagong on Dhaka-Chittagong highway.

After the independence, Bangladesh government acquired the industry and renamed it Pragati Industries Limited (PIL), which was then enlisted with Bangladesh Steel and Engineering Corporation (BSEC).

PIL, which earned a profit of Tk 16.5 crore last fiscal year, has an annual capacity of assembling 1,500 vehicles like bus, truck, jeep and private car.

Tata Motors to set up 2nd light vehicles unit in Bangladesh

http://www.theindependentbd.com/business/finance/20843-tata-motors-to-set-up-2nd-light-vehicles-unit-in-bangladesh.html

Tata Motors to set up 2nd light vehicles unit in Bangladesh
ECONOMIC REPORTER

Tata Motors Ltd plans to set up a second factory in Bangladesh, one of its main export destinations for commercial vehicles, in six months to cater to growing sales of small and light commercial vehicles. India’s largest auto maker by sales revenue is the junior partner in a 60:40 joint venture with Bangladesh’s Nitol Motors Ltd for nearly two decades, online news portal livemint.com reported. Nita Co. Ltd, which has been the sole distributor of Tata Motors’ small, medium and heavy-duty trucks in Bangladesh since 1991, has an assembling unit for medium and heavy-duty trucks.

“Under the same joint venture agreement, what’s in the works is a new factory for which we are currently surveying the land,” said Abdul Matlub Ahmed, chairman of Nitol Niloy Group of Industries said.

Ahmed added that the new factory will assemble small and light commercial vehicles that have so far been imported from India, allowing Nita to avoid levies and price them more competitively. Currently 25,000 commercial vehicles are sold in Bangladesh in a year.

Ahmed said the market is expected to grow three-fold in four years to 70,000 units and Nita will account for half the sales. “With the increasing business in Bangladesh, Nita Co. Ltd is now in the process of evaluating the possibility of increasing the production capacity in Bangladesh, and also exploring the possibility of starting assembly of light and small commercial vehicles for Bangladesh,” a Tata Motors spokesperson said.

Both Tata Motors and Nitol Motors declined to specify the investment in the new factory.

The new factory will assemble models such as the Tata Magic, Ace and Iris.

Ahmed said the site would be finalized in two-three weeks, after which Nita will seek an approval from the senior management of Tata Motors. He expects the unit to start production in six months.

The facility will roll out 15,000 vehicles in the first year and reach 40,000 units in the next year. The second phase of the project would entail establishing a vendor base around the factory, he added.

According to the company representative, the new manufacturing base may also help Tata Motors make deeper inroads into Europe.

The European Union’s everything but arms arrangement provides duty- and quota-free access for a multitude of products from 49 least developed countries, including Bangladesh, according to the European Commission’s website.

The decision on exports from Bangladesh, however, will be Tata Motors’, said Mr Ahmed.

Mahantesh Sabarad, senior vice-president, equity, at brokerage Fortune Equity Brokers Ltd, said Tata Motors is capable of independent presence in overseas  markets, but it makes sense to emulate the Bangladesh model elsewhere if it can tie up with a local partner as strong as Nitol. “The joint venture has paid off,” he said.

Country can earn huge forex by exporting Dholaikhal built automobile parts

http://www.bssnews.net/newsDetails.php?cat=0&id=101451&date=2010-04-19

‘Country can earn multi-billion dollars forex by exporting Dholaikhal- built automobile’

DHAKA, April 19 (BSS) – Bangladesh could earn multi-billion US dollars foreign exchange by exporting automobile parts being built at the city’s Dholaikhal to US market as a company is keen on importing automobile products from the local automobile zone, which has propelled from almost zero status.

The US company named ‘New Mil Bert Int. Inc’, which import automobiles, already contacted with Bangladesh Industrial Technical Assistance Centre (BITAC) for sending some samples including bumper bracket, rubber brush and suspension kits worth US$15,000.

Responding to the US company’s offer, the BITAC requested Bangladesh Engineering Industry Owners’ Association (BEIOA) to take over the opportunity and later the BEIOA agreed to produce the automobile products.

“The automobile samples are now ready. We have maintained highest quality and those will be sent to the US market next week,” Abdur Razzaque, president of the BEIOA told BSS today.

He said the US company is now importing the automobile sample from Taiwan and India, he said adding that Bangladesh is likely to will get huge export order once the sample is okayed.

It also assured the BEIOA of providing technical support to build expensive control numerical control (CNC) machine to expedite manufacturer, said Razzaque.

“We have set a target to surpass the number one export earning garment sector within few years by exploring untapped potential of local automobile products,” said BEIOA president.

Razzaque said, the sector needs the government support for technological upgradation, planned infrastructures and luster of all items.

Besides, an area has already been located for setting up an industrial park under the public-private-partnership (PPP) initiative.

“We do not need aid from the government or foreign donors. I we get the government’s policy support, the sector will show how it can change the country’s economic status,” said the optimistic entrepreneur.

The sector mainly involves three kinds of works—making complete machinery, construction of equipment and spare parts.

There are currently around 40,000 small-scale light engineering enterprises in the country, which directly involves six lakh people, according to Board of Investment (BOI) statistics.

The sector manufactures more than 10,000 types of items and the BEIOA can now supply light engineering products worth Taka 2000 crore a year for local industries.

Tata keen to source auto-parts Nano plant to be delayed

http://www.newagebd.com/2010/mar/29/busi.html#2

Tata keen to source auto-parts Nano plant to be delayed
Kazi Azizul Islam

Indian auto-giant Tata Motors has shown interests on sourcing auto-components from Bangladesh, said a top official of the company’s business partner here.

A technical team from Tata will carry out a survey here within next two months for assessing the possibility of manufacturing auto-components in Bangladesh, chairman of Nitol Motors, Matlub Ahmed, told New Age on Friday.

Matlub and his colleagues on Thursday had a long and crucial meeting with Tata Motors Managing Director Prakash Telang who was in Dhaka for some hours on the day.

‘Our discussions focussed much on the possibility of sourcing Bangladeshi auto-components for manufacturing Tata vehicles in India as well as assembling them in Bangladesh,’ said Matlub.

Matlub said he had apprised the Tata boss on a growing and quite reliable capacity of Bangladesh Machine Tools Factory, some private sector automobile battery manufacturers and a promising light-engineering industry in Bangladesh.

‘I brought to his [Telang’s] notice the ready capacity here for sourcing components like batteries, vehicle tyres and break drums,’ said Matlub. ‘He agreed to send a Tata team to do an on-the-spot feasibility study.’

Matlub feels that if technical support is provided, ‘many auto-component manufacturers can grow here… We already have a promising light-engineering industry here.

Asked how the Tata MD responded to Nitol’s plan for setting up a plant in Bangladesh for manufacturing Tata’s much hyped small car Nano, Matlub said, ‘As we want to use local components in Nano, so any progress in setting up the proposed plant would depend on the progress of attaining capability in Bangladesh for producing auto-components.’

Though he categorically hinted a delayed possibility for having a Nano plant in Bangladesh, Matlub was however hopeful on his dream project.

Bangladeshi customers showed huge interest in Nano that was showcased in the India Trade Fair in Dhaka last month. But disappointments were there as more than 100 per cent tax on intact car would cost each Nano nearly Tk 6 lakh.

Nitol officials estimated that a locally manufactured Nano would cost Tk 3 lakh. So a plant here for rolling out 50,000 units annually would be viable if 10,000 units are sold locally and the rest are exported, they said.

Nitol assembles and sells Tata trucks and buses in Bangladesh for nearly three decades.

Matlub also discussed with Telang expansion and development of Tata’s assembling facilities and the prospect of setting up a new plant for Tata’s ACE series mini-trucks.