Tata Motors enters Bangladesh car market

[CaPtAiN_pLaNeT]

If thats true. then good for BD. But still verify . I have read that duty free access is only for textiles and related products, that too for a time period.

All LDC country has the advantage. Yes it will be reassess in 2015 again if agreed it will be extended up to 2030. Bangladesh has not updated GDP thats why to remain in LDC.

That advantage is there because usually LDC countries do not manufacture heavy industry related product. So it was assumed LDC countries will only export cheap products. But this is only Bangladesh among LDC countries which has such capacity.

 

[Icewolf]

^^ Update GDP? Do you know what you are even talking about? Har aara gara naathu khara tries to be a economist these days

 

[CaPtAiN_pLaNeT]

^^ Update GDP? Do you know what you are even talking about? Har aara gara naathu khara tries to be a economist these days

Yes aara gara naathu khara like you should not try to be a economist.

http://www.defence.pk/forums/bangladesh-defence/221514-bbs-finalises-2005-06-new-gdp-base-year.html

 

[LaBong]

Icewolf just hit Captain_Planet out of the park. Can Captain comeback and regain his honour or prefer to be a Bangladeshi. Stay tuned folks for more action!

 

[damiendehorn]

Please stick to the topic and try not to derail the thread.

Cars are a lot cheaper in India because they are built there, so no heavy import duty to pay. Any one with 5-6 lakh rupee should be able to buy a new car, but because we do not yet build cars here in Bangladesh a buyer has to buy imported cars either new or reconditioned with average 300% tax. So the same 5-6 lakh rupee car will cost a Bangladeshi buyer 20-24 lakh rupee, simple maths. This is why, there are proportionally few cars in Bangladesh then in India.

If this tax was reduced then cars will be affordable to a lot more people, you would see at least 4 fold increase in sales, from present 70 lakh cars to over 200 lakh, but then you would have to increase your import bill for fuel etc.

I don't care if tata builds a factory in Bangladesh or not, but having a factory here will give that company who ever it is a very big advantage both price and first mover. Now if a firm has a factory in India then naturally they would prefer to just to supply from there, instead of building another in Bangladesh, but the duty is not gonna disappear.

So when the power shortage is sorted, then we will see who build the first....

 

[CaPtAiN_pLaNeT]

Icewolf just hit Captain_Planet out of the park. Can Captain comeback and regain his honour or prefer to be a Bangladeshi. Stay tuned folks for more action!

your drama is over even before starting. Icewolf's mouth has been shut in this regard. From now on he wont be try to be economist.

 

[MandarK]

With price 2-5 lakh 100s and thousand of people can afford to buy car within a night. But no Bangladeshis are interested to buy junk like that of India.

How come super rich BD are buying TATA for commercial vehicle??

Actually BD knows that they are not in a condition to buy new cars and hence they buy SECOND HAND car.

A 1-5 year old reconditioned car is more preferable then a Indian junk.

Its all about mentality. In India people consider it a shame but BD are taking Pride in buying second hand car. BD deserve to buy SECOND HAND car only.

It is an embarrassment of the Bangladeshis to buy and ride on an Indian car which we consider is nothing but a low quality junk.

Nobody is forcing you to buy it. If your super rich people are happy with second hand cars then let them buy it. TATA will exit the market automatically.

I guess TATA is trying to change the mentality of BD people by offering them a real world class NEW car.

A Honda, Toyota, Nissan or Mitsubishi will always be Honda, Toyota, Nissan or Mitsubishi not a junk like Tata or Maruti.

A second hand car will remain a second hand car no matter how much polishing is done.

BTW its Maruti SUZUKI.

Because Bangladesh;s production is far low and it has duty free access to EU, North America and Middle eastern market which India does not have.

And the reason is that BD is a least developed country. Duty free access is because of that status and not because you have some good relations with those countries. We are not in the category of least developed country and hence no duty free access.

More over Bangladesh is almost a virgin market for 164 million people and it has limitless opportunity for growth.

With just 3 cars per 1000 people........no chance at all.

 

[Rajaraja Chola]

All LDC country has the advantage. Yes it will be reassess in 2015 again if agreed it will be extended up to 2030. Bangladesh has not updated GDP thats why to remain in LDC.

That advantage is there because usually LDC countries do not manufacture heavy industry related product. So it was assumed LDC countries will only export cheap products. But this is only Bangladesh among LDC countries which has such capacity.

BD havent updated GDP to make use of this duty free? But IMF and WB would be making a list every year on GDP of countries.
Moreover yes, BD have the capability, but still havent extablished yet. A lot of work is to be done

 

[Mech]

I am pretty sure even small states in India has more "japanese cars" than bangladesh. They are fine......but that's just it...."fine". Not extraordinary.

That is, i wouldn't even dream of buying a "reconditioned" 10 years old car. Personally, i wouldn't even consider 4-5 year old cars.

Way too many better BRAND NEW alternatives available.

 

[MandarK]

Why to buy second hand when you can actually buy a brand new car.

 

[my2cents]

nitol is going to find it difficult to find buyer for tata cars in Bangladesh, I don't want to bash indian products just explain the facts why this will be the case:

1. import duties for cars range from 129% to 599%.
2. as a result of marutis being used as taxis (Bangladesh used to have 2 types of taxis, black non airconditioned marutis and yellow airconditioned japanese cabs) indian cars have got a very very poor brand image.
3. all reconditioned cars that are imported cannot be more then 5 years old.
4. Anyone looking to buy a car in Bangladesh, needs at least minimum $35,000USD even for the cheapest reconditioned car
5. nitol is the importer for indian assembled merc, that cost at least 27% less then the same merc from germany, but people still import german assembled merc. indian goods actualy have a lower quality reputation then chinese made goods in Bangladesh, now that is some going.

What tata should concentrate on is trucks, where their brand still has value, and build from their...

Now here is the main problem, the tata manza you buy in india say costs rupees 9 lakh, this same car will cost about 36 lakh rupees in Bangladesh (53 lakh taka / $65,000USD) because of import duties. Now ask yourself would you pay $65,000USD/36 lakh rupee for a manza?

Duty is 129% for cars which are 1500cc or less. So a Tata Manza which cost 9 lakh rupees will cost about 20 lakh rupees (about 29 lakh Taka) after all the duties. About 35000 USD. It is half of what you are quoting.

P.S: Actually a Tata Manza cost about 6 to 8 lakh rupees only.

 

[CaPtAiN_pLaNeT]

I am pretty sure even small states in India has more "japanese cars" than bangladesh. They are fine......but that's just it...."fine". Not extraordinary.

That is, i wouldn't even dream of buying a "reconditioned" 10 years old car. Personally, i wouldn't even consider 4-5 year old cars.

Way too many better BRAND NEW alternatives available.

Have not you seen already the car which cost 5-6 lakh rupee is costing up to 24 lakh rupee??? So when buyers are given choice to buy Japanese reconditioned car and Indian junk they prefer Japanese.

For example people will prefer a refurbished apple iphone then any Indian brand new junk set. It is just buyers test.

BD havent updated GDP to make use of this duty free? But IMF and WB would be making a list every year on GDP of countries.
Moreover yes, BD have the capability, but still havent extablished yet. A lot of work is to be done

IMF and ADB have information what government provides to them but IMF is helping Bd to update it's GDP.

 

[damiendehorn]

Duty is 129% for cars which are 1500cc or less. So a Tata Manza which cost 9 lakh rupees will cost about 20 lakh rupees (about 29 lakh Taka) after all the duties. About 35000 USD. It is half of what you are quoting.

P.S: Actually a Tata Manza cost about 6 to 8 lakh rupees only.

Hi my2cents, there is a crazy system, if the engine capacity is 1500cc then the tax is 300% if it can be registered as 1499cc and under then you have varying scales of tax....all the way down to 129% like for a 800cc car (and they also take other factors into account, so you don't just buy a derated model an change things). I know the system is mad, it's done to avoid too many cars being imported, raise revenue etc, I think Singapore has similar policies.
The point is if tata wants to truly capture the growing market, then they have to build their own factory before others steal a march on them, then again this will not happen until the power issue is sorted. I think Walton are talking with the Japanese to get there project going... Which looks more likely to move forward... Only time will tell, let's see.

 

[Infinity]

TATA is an inferior brand and symbol to me/

DO you mean Jaguar to........................

 

[damiendehorn]

DO you mean Jaguar to........................

Are the jags built in India or uk? Tata bought jaguar and land rover brands, they are seen as British designed and manufactured cars. Now when they have a model designed and built in India, we will see how we'll the brand performs in Bangladesh.