Sun rising for Bangladesh Automotive Industry

[Indos]

There are already big players over there and you should be clever. Big producers are already there like China, India, Thailand, Indonesia who can offer affordable labor cost as well.

Here Indonesian company who make car components, it has been making car component since 1975. This is part of a conglomeration and it has also three big coal mining company which one of them is the biggest in Indonesia. I would say Bangladesh should play smart and enter business where it has the competitive advantage, a basic business formula.

Home Page - Bakrie & Brothers

bakrie-brothers.com

Focus on agricultural vehicle like this Indonesian company, Astra Autopart or making bus something that I recommended. The bus can be sold to Bangladesh Armed force first before it enter India/Pakistan/Myanmar and other market.

 

[Viva_Viet]

There are already big players over there and you should be clever. Big producers are already there like China, Thailand, Indonesia who can offer affordable labor cost as well.

Here Indonesian company who make car components, it has been making car component since 1986. This is part of a conglomeration and it has also three big coal mining company which one of them is the biggest in Indonesia. I would say Bangladesh should play smart and enter business where it has the competitive advantage, a basic business formula.

Home Page - Bakrie & Brothers

bakrie-brothers.com

Focus on agricultural vehicle like this Indonesian company, Astra Autopart or making bus something that I recommended. The bus can be sold to Bangladesh Armed force first before it enter India/Pakistan/Myanmar and other market.

I think ID and DB'd better focus on manufacturing car components. Making car is very risky as u may not survive in car market and finally have to sell the company like Proton of MY sold to Geely of CN.

 

[Indos]

I think ID and DB'd better focus on manufacturing car components. Making car is very risky as u may not survive in car market and finally have to sell the company like Proton of MY sold to Geely of CN.

This is why we are focusing on niche market, having around 300 units sold of car like Maung from Pindad per year can still get good ROI rather than competing with bahemoth like Toyota and others and must produce around 100.000 cars a year to get economic of scale to stay competitive.

Currently Indonesian ambition on automotive is only in motorcyle (Gesit) where we hope we can challenge Honda in our own country and it is electric one since they are still focusing on combustion engine. So we are stealing the start and currently only compete with Chinese motorcycle products.

 

[Indos]

How these two can be reconcile? Govt. imposed import tariff upto 850% for a reconditioned Japanese car. With such an exorbitant price how can the car sale will break that limiting factor? In Bangladesh, private car is out of reach for the Middle class. Only millionaire(crorepati) afford to buy one. Unless govt. shed it's thinking of car as a very luxurious product thus need heavy taxing, things will not improve. Even if they promote car assembly but maintain high tariff for importing assembly parts, this industry will struggle. So the thinking and policy change need first.

The reason Bangladesh government impose high tariff on importing parts is to give incentive to investors whether foreign or domestic to produce the part in Bangladesh. Just like in Indonesia, CBU cars get huge tarrif where assembly ones get reduced tarrif and the car can get minimal tax if they can have at least 70 percent of their components made in Indonesia.

The policy will seduce OEM to use local part suppliers and in the same time make local businessmen or foreign investor to think about setting up component manufacturing inside the country,

 

[EasyNow]

I hope we look at future transport trends rather than trying to build more oil guzzlers. Dhaka has terrible air quality as it is, we shouldn't be adding millions of new private, oil-based vehicles.

More major public transport programmes, like the Dhaka metro, are the key - and we must engage local industry to build it.

In terms of industry, there are many electric car parts we probably could build in BD from metal parts to entertainment units, batteries, upholstery, etc. For once let's get ahead of the game.

 

[Bilal9]

I would prefer Bangladesh focus on public transportation and making a bus. It is also good to Bangladesh economy in general, it will make less pressure on infrastructure investment and oil import as well. I would say with the emergence of Grab/Uber/Gojek, people would rather use that service if they want to use car for some thing. It is much convenience since we dont need to drive a car, unless if you have your own driver and dont have problem to pay him every month.

Exactly brother.

Bangladesh has many rideshare services using 2 wheelers and cars. Uber and our own homegrown "Pathao" version.

I think ID and DB'd better focus on manufacturing car components. Making car is very risky as u may not survive in car market and finally have to sell the company like Proton of MY sold to Geely of CN.

What is going on with VINFAST? They participated in the car show in Geneva I think a few years ago, with some luxury models based on older BMW X5 and 6-series chassis?

 

[Viva_Viet]

What is going on with VINFAST? They participated in the car show in Geneva I think a few years ago, with some luxury models based on older BMW X5 and 6-series chassis?

Vinfast car are still selling well in VN market, Vinfast is also making Electric bus, car and plan to make IPO in US

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Vingroup eyes $2 bln from VinFast IPO in US
By Dat Nguyen

Tue, 4/13/2021 | 08:31 (GMT+7)

Vietnam’s largest private company, Vingroup, is considering an initial public offering of shares in its auto subsidiary VinFast in the U.S. to raise around $2 billion

Vingroup eyes $2 bln from VinFast IPO in US - VnExpress International

Vietnam’s largest private company, Vingroup, is considering an initial public offering of shares in its auto subsidiary VinFast in the U.S. to raise around $2 billion.

www.google.com

 

[Bilal9]

China is rolling out 4000 EV charging points A DAY !!

China dominates rollout of EV charging stations – 4,000 a day in December– more than the entire US public charging network

China dominates rollout of EV charging stations – 4,000 a day in December APRIL 20, 2021 China installed 284,000 public EV charging outlets in 2020, including 112,000 in December alone – more than the entire US public charging network – according to data published by BloombergNEF. BNEF’s...

defence.pk

 

[Bilal9]

I revived this old thread only to have you guys go through this video about Thailand's automotive industry.

It seems that in the 1960's and 1970's Thailand did have a thriving automotive manufacturing sector, only to be misdirected by Military Generals and Shinawatra in the 1990's, after which the larger foreign companies became the major investors (Toyota, Honda, GM/Isuzu etc.) centered around Laem Chabang port (75 KM south of Bangkok).

Watch the video carefully so that we can discuss. I have watched it a couple of times already, and it holds many important lessons for govt. policy in Bangladesh auto industry.

The previous comments in this thread about developing local automobile parts manufacturing also applies to Thailand, they are largely self-reliant nowadays in automotive parts, but it took a good four decades to get there.