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Runner, Bajaj to set up three-wheeler manufacturing plant in Bangladesh

The Ronin

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Runner Automobiles, a listed company with the stock market, is going to set up a three-wheeler manufacturing plant in Bangladesh with the association of Indian automobile giant Bajaj Auto Ltd.

The Board of Directors of Runner Automobiles is set to sign an agreement with the Indian company to set up the plant with a cost of Tk 3.0 billion.

The Runner Auto informed that they will invest approximately Tk 3.0 billion, a part of which will be funded by IPO proceeds which has already been approved by the board of directors, shareholders and taken approval from Bangladesh Securities and Exchange commission.

Under the agreement, Runner will manufacture and distribute Bajaj’s RE 4S three-wheeler in Bangladesh and will take necessary technical support for localisation of parts and components, assembling and manufacturing of vehicles from Bajaj Auto.

Publicly traded company Runner Automobiles Limited is going to set up a three-wheeler manufacturing plant in Bangladesh in collaboration with Indian automobile giant Bajaj Auto Limited.

Bajaj Auto will provide necessary technical support for localization of parts and components, assembling and manufacturing of vehicles to Runner Automobiles.

This will be the first ever three-wheeler manufacturing plant of a global brand set up in Bangladesh.

According to an official disclosure posted by the companies concerned on Dhaka Stock Exchange website yesterday, the board of directors of Runner Automobiles was set to sign an agreement with the Indian company to set up the plant at a cost of Tk300 crore.

The new manufacturing plant will be established at Bhaluka in Mymensingh.

Runner Auto also said that they will invest approximately Tk3 crore, a part of which will be funded by IPO proceeds which has already been approved by the board of directors, shareholders and the Bangladesh Securities and Exchange Commission (BSEC).

By setting up the manufacturing plant to ensure quality, availability and affordability, Runner's presence in the three-wheeler market will be further strengthened, the company hoped.

Hafizur Rahman Khan, chairman of Runner Automobiles, in a statement said that this was a very crucial step towards expanding the automobile manufacturing capabilities in Bangladesh and developing local expertise, including vendors.

“Bajaj is the global market leader in three-wheelers and we are delighted to tie up with them. This initiative is in line with the government’s vision of making the light engineering sector a priority,” he also said.

Each share of Runner closed at Tk58.80 on Wednesday at the Dhaka Stock Exchange (DSE).

The company was listed on the Dhaka Stock Exchange in 2019. It belongs to the “A” category.

Their paid-up capital is Tk113 crore.

 

Protest_again

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Runner Automobiles, a listed company with the stock market, is going to set up a three-wheeler manufacturing plant in Bangladesh with the association of Indian automobile giant Bajaj Auto Ltd.

The Board of Directors of Runner Automobiles is set to sign an agreement with the Indian company to set up the plant with a cost of Tk 3.0 billion.

The Runner Auto informed that they will invest approximately Tk 3.0 billion, a part of which will be funded by IPO proceeds which has already been approved by the board of directors, shareholders and taken approval from Bangladesh Securities and Exchange commission.

Under the agreement, Runner will manufacture and distribute Bajaj’s RE 4S three-wheeler in Bangladesh and will take necessary technical support for localisation of parts and components, assembling and manufacturing of vehicles from Bajaj Auto.

Publicly traded company Runner Automobiles Limited is going to set up a three-wheeler manufacturing plant in Bangladesh in collaboration with Indian automobile giant Bajaj Auto Limited.

Bajaj Auto will provide necessary technical support for localization of parts and components, assembling and manufacturing of vehicles to Runner Automobiles.

This will be the first ever three-wheeler manufacturing plant of a global brand set up in Bangladesh.

According to an official disclosure posted by the companies concerned on Dhaka Stock Exchange website yesterday, the board of directors of Runner Automobiles was set to sign an agreement with the Indian company to set up the plant at a cost of Tk300 crore.

The new manufacturing plant will be established at Bhaluka in Mymensingh.

Runner Auto also said that they will invest approximately Tk3 crore, a part of which will be funded by IPO proceeds which has already been approved by the board of directors, shareholders and the Bangladesh Securities and Exchange Commission (BSEC).

By setting up the manufacturing plant to ensure quality, availability and affordability, Runner's presence in the three-wheeler market will be further strengthened, the company hoped.

Hafizur Rahman Khan, chairman of Runner Automobiles, in a statement said that this was a very crucial step towards expanding the automobile manufacturing capabilities in Bangladesh and developing local expertise, including vendors.

“Bajaj is the global market leader in three-wheelers and we are delighted to tie up with them. This initiative is in line with the government’s vision of making the light engineering sector a priority,” he also said.

Each share of Runner closed at Tk58.80 on Wednesday at the Dhaka Stock Exchange (DSE).

The company was listed on the Dhaka Stock Exchange in 2019. It belongs to the “A” category.

Their paid-up capital is Tk113 crore.

Chinese technology would have been superior. Runner is wasting time with Indian Bajaj.
 

Bilal9

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Let's analyze the current 3-wheeler market in India, which is going all-electric in a few years time.

Bangladesh Govt. should NOT relax rules for these polluting Indian IC engines. In fact they haven't enforced current emission rules on the books already. Cheap dhappabaj corrupt thieves these motor vehicle regulators. They should mandate by force that any 3-wheelers made locally should be electric from now on - period, Baniyas trying to screw up our environment in clandestine ways. While gas 3-wheelers are dying in their home market.

_______________________________________________________________________________________________


ELECTRIC THREE WHEELER MARKET IN INDIA-INTRODUCTION
India has been making headlines for past 2 years about the mass-shift to e-mobility, across two-wheeler and passenger vehicle segments but without much success. On the other hand, a segment of auto manufacturing has silently adopted e-mobility like no other and is showing no signs of slowing down, i.e. electric three-wheeler market in India or e-rickshaw as it is widely called.

India being a developing country, where annual per capita income was just ~$1,800 in 2018, three-wheelers are an important mode of transportation for millions of Indians. Very often, they are associated with high pollution in northern and Eastern India where single-cylinder gasoline/diesel autos are prevalent due to non-existent CNG/LPG infrastructure.

MARKET SEGMENTATION


Infographic: Electric three wheeler market in India, Electric three wheeler market in India market size, E rickshaw market in India



MARKET DYNAMICS
Electric three wheelers started starts gaining popularity post 2012. They have now become a viable alternative for pedal powered and gas engine powered rickshaws. The biggest reason behind growth of electric three-wheeler in India is not regulation/incentives but the low running cost (70-80% savings as compared to gas powered three-wheeler) for driver as well as passenger.

The buyer/driver of electric three-wheeler is expected to recover his investment in 8-9 months and the rider gets an affordable ride at Rs 10 (~$0.15) per ride. Not to mention, the added benefits of non-polluting first mile/last mile/short trip transportation, which is becoming a menace in tier-2 cities

During 2012-2013 when the market was in early stages of development, 100% of electric three-wheelers were powered by Lead Acid batteries but now there is a definite shift towards Li-ion batteries.


MARKET SIZE AND FORECAST

The electric three-wheeler market in India is estimated at ~$150 Million in 2019 and has the potential to go past $1 Billion by 2025.

SOME OF THE ELECTRIC THREE WHEELERS AVAILABLE IN INDIA -JULY 2019
Sl noOEMModelBattery(kWh)Top speed (Km/hr)Ideal Range (Kms)Price range without subsidy(USD)
1Mahindra & MahindraTreo3.7-7.425-4585-130~$2,000-$3,200
2Lohia AutoComfort4.825100~$1,800-$2.400
3Kinetic GreenDX2.12580~$1,900
4Terra MotorsY4 Alfa4.825100~$1,900
5Gayam Motor WorksUrban ET4.855110~$4,700
Source- Dealers and company websites


OPPORTUNITY IN THE INDIAN ELECTRIC THREE-WHEELER MARKET
FOR COMPONENT MANUFACTURERS
Given the history of low R&D spending by Indian auto component manufacturers, there exists a huge gap in demand and supply for critical components like battery, motor controller, regen braking etc.

The domestic supplier base of gasoline/CNG/LPG powered three- wheelers is strong and mature but they are still coming to terms with emission shift to BS VI(comparable to Euro VI). Thus, very limited investment has been made on e-mobility so far. Majority of Indian Electric two and three wheelers companies are relying on Bosch for e-powertrain development.

The market leaders of conventional 3-wheelers (Bajaj and TVS with cumulative 80% market share) are still developing their products and that is where the biggest opportunity lies for component suppliers.

FOR ELECTRIC THREE WHEELER MANUFACTURERS
The market size of electric three- wheelers in India has already outgrown gasoline/CNG/LPG by 20% in FY 2019. But it wont stop there as many pedal rickshaw drivers, which are abundant in northern and eastern India(densely populated cities with narrow lanes) will shift to Electric three wheelers further augmenting the market size.

COMPETITIVE LANDSCAPE
The boom in electric three-wheeler market in India has resulted in many small scale, regional players entering the market. Among the major reasons for this is the substitution of complicated Internal combustion engine with e-powertrain, resulting in greater simplification of three-wheeler manufacturing.

The bigger players are still developing their products with superior technology and will launch them prior to April 2020 BS VI timeline.


IMPORTANCE OF BALANCED DISTRIBUTION IN ELECTRIC THREE WHEELER MARKET IN INDIA
For Electric three wheelers to do well in India, the distribution has to better than the existing market leaders. The dealers for electric three wheelers are so far concentrated in Northern and Eastern India and have almost negligible presence in the west and south. For comparison, Bajaj (market leader of three wheelers with 50% market share) has 2,200 dealers across India. About 45% are spread across comparatively wealthier and Industrialized west and south India.

COMPANY PROFILES
  1. Lohia Auto
  2. Mahindra and Mahindra
  3. Terra Motors
  4. Scooters India Limited
  5. Gayam Motor Works
  6. Kinetic Green Energy & Power Solutions Ltd
  7. Vani Electric Vehicles pvt. Ltd.
  8. Udaan E Rickshaw
  9. Goenka Electric Motor Vehicles Pvt. Ltd.

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
  1. Market size of electric three-wheeler market in India and growth potential in every year (2019-2025)? Most important disruption factors in every segment
  2. Which electric three-wheeler segment (Passenger/cargo) will have highest growth and in which region?
  3. How much battery range and charging time is enough for electric three-wheeler drivers/operators in India?
  4. Electric three-wheeler battery and associated components manufacturing in India
  5. Impact of Electric three-wheeler market growth on conventional three- wheeler market
  6. Details on government schemes and legislation promoting electric three-wheeler market in India
  7. Role of Chinese imports in electric three-wheeler manufacturing
  8. OE-supplier alignment in electric three-wheeler market in India?
  9. Who are the leading distributors of electric three wheelers in India?
  10. All about new product development, new entrants, start-ups, and manufacturing plants
  11. Market share of leading players in different segments?
  12. Details on workforce shortage of skilled sales and service support for electric three-wheeler in India
  13. Potential in integration of electric three-wheelers with on-demand taxi market in India
 

Protest_again

SENIOR MEMBER
May 19, 2019
2,622
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Let's analyze the current 3-wheeler market in India, which is going all-electric in a few years time.

Bangladesh Govt. should NOT relax rules for these polluting Indian IC engines. In fact they haven't enforced current emission rules on the books already. Cheap dhappabaj corrupt thieves these motor vehicle regulators. They should mandate by force that any 3-wheelers made locally should be electric from now on - period, Baniyas trying to screw up our environment in clandestine ways. While gas 3-wheelers are dying in their home market.

_______________________________________________________________________________________________


ELECTRIC THREE WHEELER MARKET IN INDIA-INTRODUCTION
India has been making headlines for past 2 years about the mass-shift to e-mobility, across two-wheeler and passenger vehicle segments but without much success. On the other hand, a segment of auto manufacturing has silently adopted e-mobility like no other and is showing no signs of slowing down, i.e. electric three-wheeler market in India or e-rickshaw as it is widely called.

India being a developing country, where annual per capita income was just ~$1,800 in 2018, three-wheelers are an important mode of transportation for millions of Indians. Very often, they are associated with high pollution in northern and Eastern India where single-cylinder gasoline/diesel autos are prevalent due to non-existent CNG/LPG infrastructure.

MARKET SEGMENTATION


Infographic: Electric three wheeler market in India, Electric three wheeler market in India market size, E rickshaw market in India



MARKET DYNAMICS
Electric three wheelers started starts gaining popularity post 2012. They have now become a viable alternative for pedal powered and gas engine powered rickshaws. The biggest reason behind growth of electric three-wheeler in India is not regulation/incentives but the low running cost (70-80% savings as compared to gas powered three-wheeler) for driver as well as passenger.

The buyer/driver of electric three-wheeler is expected to recover his investment in 8-9 months and the rider gets an affordable ride at Rs 10 (~$0.15) per ride. Not to mention, the added benefits of non-polluting first mile/last mile/short trip transportation, which is becoming a menace in tier-2 cities

During 2012-2013 when the market was in early stages of development, 100% of electric three-wheelers were powered by Lead Acid batteries but now there is a definite shift towards Li-ion batteries.


MARKET SIZE AND FORECAST




SOME OF THE ELECTRIC THREE WHEELERS AVAILABLE IN INDIA -JULY 2019
Sl noOEMModelBattery(kWh)Top speed (Km/hr)Ideal Range (Kms)Price range without subsidy(USD)
1Mahindra & MahindraTreo3.7-7.425-4585-130~$2,000-$3,200
2Lohia AutoComfort4.825100~$1,800-$2.400
3Kinetic GreenDX2.12580~$1,900
4Terra MotorsY4 Alfa4.825100~$1,900
5Gayam Motor WorksUrban ET4.855110~$4,700
Source- Dealers and company websites


OPPORTUNITY IN THE INDIAN ELECTRIC THREE-WHEELER MARKET
FOR COMPONENT MANUFACTURERS
Given the history of low R&D spending by Indian auto component manufacturers, there exists a huge gap in demand and supply for critical components like battery, motor controller, regen braking etc.

The domestic supplier base of gasoline/CNG/LPG powered three- wheelers is strong and mature but they are still coming to terms with emission shift to BS VI(comparable to Euro VI). Thus, very limited investment has been made on e-mobility so far. Majority of Indian Electric two and three wheelers companies are relying on Bosch for e-powertrain development.

The market leaders of conventional 3-wheelers (Bajaj and TVS with cumulative 80% market share) are still developing their products and that is where the biggest opportunity lies for component suppliers.

FOR ELECTRIC THREE WHEELER MANUFACTURERS
The market size of electric three- wheelers in India has already outgrown gasoline/CNG/LPG by 20% in FY 2019. But it wont stop there as many pedal rickshaw drivers, which are abundant in northern and eastern India(densely populated cities with narrow lanes) will shift to Electric three wheelers further augmenting the market size.

COMPETITIVE LANDSCAPE
The boom in electric three-wheeler market in India has resulted in many small scale, regional players entering the market. Among the major reasons for this is the substitution of complicated Internal combustion engine with e-powertrain, resulting in greater simplification of three-wheeler manufacturing.

The bigger players are still developing their products with superior technology and will launch them prior to April 2020 BS VI timeline.


IMPORTANCE OF BALANCED DISTRIBUTION IN ELECTRIC THREE WHEELER MARKET IN INDIA
For Electric three wheelers to do well in India, the distribution has to better than the existing market leaders. The dealers for electric three wheelers are so far concentrated in Northern and Eastern India and have almost negligible presence in the west and south. For comparison, Bajaj (market leader of three wheelers with 50% market share) has 2,200 dealers across India. About 45% are spread across comparatively wealthier and Industrialized west and south India.

COMPANY PROFILES
  1. Lohia Auto
  2. Mahindra and Mahindra
  3. Terra Motors
  4. Scooters India Limited
  5. Gayam Motor Works
  6. Kinetic Green Energy & Power Solutions Ltd
  7. Vani Electric Vehicles pvt. Ltd.
  8. Udaan E Rickshaw
  9. Goenka Electric Motor Vehicles Pvt. Ltd.

THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
  1. Market size of electric three-wheeler market in India and growth potential in every year (2019-2025)? Most important disruption factors in every segment
  2. Which electric three-wheeler segment (Passenger/cargo) will have highest growth and in which region?
  3. How much battery range and charging time is enough for electric three-wheeler drivers/operators in India?
  4. Electric three-wheeler battery and associated components manufacturing in India
  5. Impact of Electric three-wheeler market growth on conventional three- wheeler market
  6. Details on government schemes and legislation promoting electric three-wheeler market in India
  7. Role of Chinese imports in electric three-wheeler manufacturing
  8. OE-supplier alignment in electric three-wheeler market in India?
  9. Who are the leading distributors of electric three wheelers in India?
  10. All about new product development, new entrants, start-ups, and manufacturing plants
  11. Market share of leading players in different segments?
  12. Details on workforce shortage of skilled sales and service support for electric three-wheeler in India
  13. Potential in integration of electric three-wheelers with on-demand taxi market in India
Isn't it for Runner auto to pick up on trends and get in partnership as such. Why curse India and indians for your incompetence? Like I said Bangladeshis should engage in cooperation with Chinese not Indians period.
 

Dark1

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Bajaj 3 wheelers are surprisingly well represented all over the world, especially in south east asia, south America and Africa.
But personally i feel their time is up. Better to move to 4 wheeler taxis.
Also the report didn't mention but at the moment India has more than 1.5 m electric 3 wheelers. These guys also had to pass the obstacle course of Indian politics and courts before being allowed to operate.
 

Bilal9

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Three wheelers of any kind should be banned in BD. It's so third world.
Countries like Japan used large 3 wheel trucks extensively for utility purposes in the 70's and 80's. Passenger use, maybe not. 3 wheelers are much more maneuverable than 4 wheel trucks and quite a bit cheaper. Economics make more sense.

Mazda T1500/T2000


In the 40's Scammell (UK) used the Iron Horse. Only 3 wheeler ever used as a tractor-trailer or semi trailer.


 

bluesky

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Three wheelers of any kind should be banned in BD. It's so third world.
However, Bangladesh remains a third world country even after receiving multi-billion dollars worth of aids, loans and credits from almost all the developed countries through the last few decades.

It is supposed to remain an LDC for the foreseeable future. So, 3rd world country should start developing from the scratch. Three wheeler just fits BD's economic status. With 2.8 trillion dollar GDP India produces and uses three wheeler. So, how can we get rid of it so early?
 

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