An Overview of Automotive industry in Bangladesh
Bangladesh’s automotive industry is the third largest in South Asia. Bangladesh has several large automobile factories which assemble Mitsubishi and Proton vehicles and Hino and Tata commercial vehicles. Motorcycles, auto rickshaws and the locally built Mishuk tricycle are made in Bangladesh.
The story of Four wheels
Pragoti Industries Limited (PIL) is one of the oldest and largest automobile manufacturers in Bangladesh. The company has assembled more than 50,000 vehicles since its inception in 1966. In February 2010, Japanese automaker Mitsubishi officially offered the Mitsubishi Pajero to the government of Bangladesh. on site to assemble Sport in collaboration with Pragoti. Operations started in August 2011 with an annual production of around 500 units.
In 2009, the Malaysian Agate Group offered to build an automobile factory in Bangladesh in collaboration with Walton, which is preparing for production of motorcycles. In the same year, automaker TagAZ announced that it would build its third factory in Bangladesh with the aim of exporting. The installation is expected to be completed by 2012. But this company has gone bankrupt.
In March 2015, PHP Group and Proton announced their intention to assemble Proton cars in Bangladesh. A new 400 crore Tk assembly plant would be built in Chittagong to provide an annual production capacity of 1,200 units. In May 2017, PHP Automobiles launched the Proton Prevé built in Bangladesh. The company intends to market the Prevé as an alternative to the imported used cars which dominate the local market.
In August 2018, Foton Motor, a Chinese automaker, announced that it would build a commercial vehicle assembly plant in Bangladesh as a joint venture with ACI Motors for the next year.
In May 2019, Japanese automaker Mitsubishi Motors decided to invest $ 100 million in Bangladesh to produce its branded vehicles. The company will initially invest the sum in Mirsarai Economic Zone in Chittagong for automobile assembly and gradually expand the assembly plant to become a complete automobile factory.
Motorcycles and scooters
Bangladesh started manufacturing motorcycles in the 2000s. Walton had the first production of motorcycles in the country. Runner Automobiles was the second motorcycle manufacturing company in Bangladesh, founded in 2012. After that, many other local companies got involved in the production of motorcycles. Some local companies like RoadMaster Motors, Jamuna Automobiles are just a few of them.
In 2014, Hero MotoCorp re-entered the Bangladesh market with the local Nitol-Niloy group and expressed interest in establishing a production plant within a few years. In 2017, Hero MotoCorp opened its motorcycle factory as a joint venture with its local partner Niloy Motors (a subsidiary of the Nitol-Niloy group).
In 2016, Runner Automobiles signed a cooperation agreement with UM Motorcycles to manufacture UM motorcycles in Bangladesh under the name UM-Runner. The motorcycles are manufactured at Runner’s Bhaluka Motorcycle Manufacturing Plant, while UM International LLC provides technology and engineering R&D support, as well as a global supply of components. Bangladesh-made UM-Runner motorcycles hit the market in the second quadrant of 2018
Honda Two Wheelers production plant in Bangladesh
In September 2012, a joint venture agreement was signed between Honda and Bangladesh Steel and Engineering Corporation to establish Honda’s first subsidiary in Bangladesh, Bangladesh Honda Private Limited (BHL). Honda owns a 70% interest in the joint venture. Honda later set out to establish a motorcycle factory in the country. In November 2017, Honda celebrated the construction of its motorcycle factory in Munshiganj District, Dhaka Division, Bangladesh, with a groundbreaking ceremony. In November 2018, Honda opened its first motorcycle factory in Munshiganj.
On May 11, 2019, ACI Motors Limited, the only Yamaha motorcycle dealer in Bangladesh, opened the Yamaha Motorcycle CKD Parts Assembly Plant in Borochala, Sreepur, Gazipur with an annual production capacity of 60,000 units. The Yamaha Motorcycle CKD assembly plant was established in direct collaboration with Yamaha Japan, and Yamaha Japan provides the necessary equipment and technical support to ensure quality at every stage of manufacturing. Initially, two models will be assembled at the factory and production of motorcycles will begin in 2020.