China's Foton to assemble vehicles in Bangladesh

[Black_cats]

12:00 AM, August 28, 2018 / LAST MODIFIED: 12:00 AM, August 28, 2018
China's Foton to assemble vehicles in Bangladesh

https://www.thedailystar.net/news/business/chinas-foton-assemble-vehicles-bangladesh-1625551

Star Business Report

Foton Motor, a Chinese vehicle manufacturer, will set up a plant in Bangladesh by next year to assemble commercial vehicles, a top official of the company said yesterday.

“The market for commercial vehicles in Bangladesh is very potential as the demand is increasing in line with the country's consistent economic growth,” said Chang Rui, president of Foton International.

He was talking to The Daily Star after the signing of an exclusive dealership deal with local ACI Motors at the ACI Centre in the capital for marketing Foton vehicles.

Rui did not disclose the amount Foton will be investing in the assembly plant.

At present, the country's market size for commercial vehicles is about Tk 4,200 crore a year and the segment is dominated by Indian vehicles. Japanese vehicles used to control the segment a decade ago.

ACI Motors believes that this partnership will enable it to grab 10 percent of the market of commercial vehicles within the next three years, according to Subrata Ranjan Das, executive director of the company.

He said they would launch the commercial sales of Foton vehicles in November this year. By signing the agreement, ACI Motors has become the sole distributor of a wide range of commercial Foton vehicles like pick-up van, double cabin pick-up, school van, dump truck, transit mixer, bulk cement carrier, fire service vehicle, cleaning vehicle, and heavy crane.

Kazi M Aminul Islam, executive chairman of the Bangladesh Investment Development Authority, said the investment would help develop the private sector.

“I hope Foton's entry into the country will help Bangladesh adopt new technologies and business knowledge,” he said.

FH Ansarey, managing director of ACI Motors Ltd, said the motors business was significantly associated with the movement, speed and growth of Bangladesh.

“ACI Motors inspired people to jump from bull carts to power tillers, power tillers to tractors and now tractors to high-speed four wheelers. It was our long cherished dream to initiate this business,” he added.

Ansarey and David Lee, executive vice president of Foton Motor for South Asia, signed the agreement.

 

[bluesky]

Foton Motor, a Chinese vehicle manufacturer, will set up a plant in Bangladesh by next year to assemble commercial vehicles, a top official of the company said yesterday.

My personal belief is that assembling of trucks and buses along with cycles, motorcycles, and three-wheelers is more fruitful and practical than proposing to assemble cars at this stage when the roads are insufficient. It is a good news for the future economy of Bangladesh.

 

[Bilal9]

Tata, AL and Eicher's business to push their third-rate Indian products in Bangladesh is now done!

One of Foton's Euro inspired Two Axle Semi Tractors for the Chinese market.

They also make three axle ones.

This is a van similar to the Toyota Hi-Ace, popular in Bangladesh and Pakistan.

They also make a full range of light and medium duty trucks from half to ten ton cargo capacity (wider selection than many Japanese lines). I'm guessing these will be the prime candidates for local assembly in Bangladesh.

Brother @Two, what is Foton's ranking among China commercial truck makers? Probably within top three?

 

[bd_4_ever]

Just a thought, more assembly and probably more sell in the Bangladeshi market. Do we really need more cars now given the traffic and road condition?

 

[Bilal9]

Just a thought, more assembly and probably more sell in the Bangladeshi market. Do we really need more cars now given the traffic and road condition?

We soitenly do. And FOTON does not make cars, they make commercial vehicles like trucks.

How are we going to get the exports over to the ships from our factories? Logistics needs commercial vehicles. People and goods will need to move around.

Demand obviously exists, so assembly will help local economy rather than import.

Once enough assembly starts, then basic automobile consumables such as galvanized cold-rolled steel sheet and glass can be supplied by companies like PHP in Chittagong. Then engines and transmissions, tyres, wheels can be fabricated and supplied locally, some of which already exists.