Indian Companies to Invest in Auto Sector in Bangladesh

[Ammyy]

It is still more value for money. Not many Civics on the roads of Bangladesh to be honest, it is just not worth it.

I am sure you have real data for your claim

 

[Zabaniyah]

I am sure you have real data for your claim

There is no market share data, but I can say by judging from the number of them on the streets.

 

[Arko]

It is true that Indian automobiles are no match with the Japanese ones. However, we need to think about the purchasing power as well.

Now-a-days, allions and premios are selling as hot cakes at over 2mil BDT each. But there are those who does not have the affordability to pay such high price. It would be good for those if these cars are actually built in BD. And in case of price, Japanese cars will be no match with the Indians. Indians will easily be able to offer cars below 1 mil which will open up a whole new market segment.

It is high time we develop our auto industry, be it through Indian investment or Japanese or any other country. Our main target should be to allow our own industry to develop and thus, only joint ventures should be allowed in BD. This will ensure some BD ownership in these ventures and will allow for transfer of technology over the long run. We should lower tax rates upon spares that are actually imported for assembly and also provide subsidies to this industry as per our ability so that most part of the cars are actually built in BD.

However, quality of Indian cars is always debatable. They are relatively new in the industry and will need time to improve; and also, quality comes at a price. If we want better quality ones, we should always go for Japanese cars.

Indian cars may face a problem of acceptability in BD market though. And all the blame should go to those junk of a car that Maruti sold here. The taxis they sold are actually of so bad quality that the locals here have developed a lack of trust upon the Indian car industry. And it will take time to earn some trust from the people here. TATA. specially after acquiring Jaguar and Land Rover, are producing some really cool cars. But I still cannot trust the Maruti ones (you guys should have a ride upon those black taxis, even 1980s corollas would perform better). Indians should actively market their products here, specially emphasizing upon quality to ensure they grab a major portion of the market (TATA already is a leader in the trucks and bus segment). The market may not be that large now, but if one can offer quality cars at 5-7 lacs, it will increase exponentially.

 

[Ammyy]

There is no market share data, but I can say by judging from the number of them on the streets.

Civic cost almost 13 lakh rupees in India.

You cant find to many civics even in India . and we are here talking about BD

Come up with official figure cause we all know the reality of BD members in PDF

 

[TopCat]

Civic cost almost 13 lakh rupees in India.

You cant find to many civics even in India . and we are here talking about BD

Come up with official figure cause we all know the reality of BD members in PDF

Its all Toyota here buddy... People are less interested in Honda due to spare parts.

Dont ues the word even in India. Indian customers are for low priced cars. Nobody buys Maruti here even though offered at much lower price than Japanese cars.

BD customer will go for Bangladeshi brand car for lower price for sure as the confidence on BD products are high now a days.

 

[acetophenol]

it will be nice if indian cars are on bd roads

 

[Ammyy]

Its all Toyota here buddy... People are less interested in Honda due to spare parts.

Dont ues the word even in India. Indian customers are for low priced cars. Nobody buys Maruti here even though offered at much lower price than Japanese cars.

BD customer will go for Bangladeshi brand car for lower price for sure as the confidence on BD products are high now a days.

WTF BD brand car is ?????

You mean assembled car ???

 

[TopCat]

WTF BD brand car is ?????

You mean assembled car ???

No few BD companies are already in the process of manufacturing cars. Walton is one of them who is producing Bikes and home appliances and exporting them.

 

[Zabaniyah]

Civic cost almost 13 lakh rupees in India.

You cant find to many civics even in India . and we are here talking about BD

Come up with official figure cause we all know the reality of BD members in PDF

Um...yeah whatever, read what arko said, he hit the nail. I have explained the dynamics of the Bangladesh car market already. Indian cars have quality issues in Bangladesh. I don't know, it could be due to supply chain issues(?)

There are no sales data of cars in Bangladesh available on the Internet.

If you are just eating your heart out and using a superiority complex to cover that up, you guys are failing.

Just accept the fact that Japanese cars are just better than Indian cars in Bangladesh.

And try to work it out so that Indian cars become acceptable to the Bangladeshi consumer instead of just belittling Bangladeshis just because they use Japanese cars. It makes you guys look unprofessional and childish.

 

[desioptimist]

It is true that Indian automobiles are no match with the Japanese ones. However, we need to think about the purchasing power as well.

Now-a-days, allions and premios are selling as hot cakes at over 2mil BDT each. But there are those who does not have the affordability to pay such high price. It would be good for those if these cars are actually built in BD. And in case of price, Japanese cars will be no match with the Indians. Indians will easily be able to offer cars below 1 mil which will open up a whole new market segment.

It is high time we develop our auto industry, be it through Indian investment or Japanese or any other country. Our main target should be to allow our own industry to develop and thus, only joint ventures should be allowed in BD. This will ensure some BD ownership in these ventures and will allow for transfer of technology over the long run. We should lower tax rates upon spares that are actually imported for assembly and also provide subsidies to this industry as per our ability so that most part of the cars are actually built in BD.

However, quality of Indian cars is always debatable. They are relatively new in the industry and will need time to improve; and also, quality comes at a price. If we want better quality ones, we should always go for Japanese cars.

Indian cars may face a problem of acceptability in BD market though. And all the blame should go to those junk of a car that Maruti sold here. The taxis they sold are actually of so bad quality that the locals here have developed a lack of trust upon the Indian car industry. And it will take time to earn some trust from the people here. TATA. specially after acquiring Jaguar and Land Rover, are producing some really cool cars. But I still cannot trust the Maruti ones (you guys should have a ride upon those black taxis, even 1980s corollas would perform better). Indians should actively market their products here, specially emphasizing upon quality to ensure they grab a major portion of the market (TATA already is a leader in the trucks and bus segment). The market may not be that large now, but if one can offer quality cars at 5-7 lacs, it will increase exponentially.

I dont know why anybody would use maruti 800 as taxi, run it really badly and then complain all Indian cars are crap.
Maruti 800 is not build for that. And it is dangerous to ride such taxi too.

 

[Zabaniyah]

I dont know why anybody would use maruti 800 as taxi, run it really badly and then complain all Indian cars are crap.
Maruti 800 is not build for that. And it is dangerous to ride such taxi too.

That is how privately owned taxi companies and bus services in Bangladesh run

 

[eastwatch]

It is a positive initiative. Mitsubishi has set up an assembly plant in Bangladesh. They assemble the Pajero and some sedans and plan to produce more models. BUT, there are strings attached to it. The components needed to assemble the product are 100% imported. None of them are of Bangladeshi origin.

These components are also taxed. So the selling price of the product becomes the same as an imported one. So it is fair to say that the tax structure in not favorable at the moment.

I have heard that the duty for components are taxed 35% of the declared import value, sales tax 20% or (100+35) x 0.2, and others 3% on the entire added value of the two above.

Can some one make areality check on the taxation system and inform us the same? Note that spare parts are imported in Bangladesh, but these are not taxed more than what I have stated.

 

[Arko]

I dont know why anybody would use maruti 800 as taxi, run it really badly and then complain all Indian cars are crap.
Maruti 800 is not build for that. And it is dangerous to ride such taxi too.

I am not sure of the facts but I believe the Government floated tender and the Maruti offered the cheapest price. I believe both the GoB and Maruti is to be blamed. There is bound to be someone in the Gov who did earn a lot out of that deal while Maruti should have taken care of their brand name......... you just don't sell cars that hurts your reputation. Maruti 800, I believe is a good deal for a middle income family. But who exactly asked them to sell the cars for taxi???....... They should have known better. If you know that your car is not going to last long enough while selling them for taxis, why sell?........Just to earn a few quick bucks? They could have earned a thousand times more if they maintained their quality. Given the present market situation, cars like Maruti 800 would surely capture a major market segment in BD. They could actually have ruled the market here if they actually were more careful about their deals. In this word of highly competitive auto industry, you cannot afford to make mistakes like that. You need to think big and have effective future plans.

However, those supplied to BD surely did not comply to the basic standards to Maruti. Something must have gone wrong with the deal. I admit that they did not design them for rough use but even then.......... their quality should not have deteriorated that fast. Surely, not all of them were run that badly; but why exactly are all of them in such bad condition???

 

[desioptimist]

That is how privately owned taxi companies and bus services in Bangladesh run

My personal advice. Never ride such a taxi. Take a rickshaw instead. Maruti 800 will not take any hit, even by a bike.
On the other hand, tata Indica can take any hit. Nothing will happen to you inside Indica.

 

[Roybot]

It is still more value for money. Not many Civics on the roads of Bangladesh to be honest, it is just not worth it.

How do you mean more value for money? As in second hand toyotas have more resale value than new hondas?