Tata Motors enters Bangladesh car market

[damiendehorn]

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?

 

[KS]

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?

If this is the case for Indian products, why are some BD members complaining about import duties in India for BD products ?

 

[Dalai Lama]

I don't know why everyone goes gaga over Toyotas man. I get they're reliable and fuel efficient an' all that but **** are they ugly!

 

[damiendehorn]

If this is the case for Indian products, why are some BD members complaining about import duties in India for BD products ?

First of all the way india stops Bangladeshi goods is through tarrifs ie only say 1million shirts allowed, not just duties. This is the duty for cars, its probably the same in india, whats your duty on say imported bmws?

 

[KS]

First of all the way india stops Bangladeshi goods is through tarrifs ie only say 1million shirts allowed, not just duties. This is the duty for cars, its probably the same in india, whats your duty on say imported bmws?

Definitely not four fold as in Bangladesh case. And BMWs are made in India at their Chennai plant hence imports are very rare. Also afaik, the word tariff means some duty or cost, not the ceiling on the number allowed.

Moreo

 

[Zabaniyah]

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?

According to a report by Financial Express, their starting price is apparently 14 lacs. You can buy a Suzuki Swift for 15 lacs.
Financial Express :: Financial Newspaper of Bangladesh

I don't know why everyone goes gaga over Toyotas man. I get they're reliable and fuel efficient an' all that but **** are they ugly!

Yeah, they are bland. But hell reliable

 

[damiendehorn]

Definitely not four fold as in Bangladesh case. And BMWs are made in India at their Chennai plant hence imports are very rare. Also afaik, the word tariff means some duty or cost, not the ceiling on the number allowed.

Moreo

Tariff is strictly speaking tax imposed, your right but india uses both high tariffs and import quotas amongst other methods to prevent bangladeshi imports.

but lets stick to the topic

because we have very high import duties in Bangladesh for cars (from anywhere), the same 9 lakh rupee manza will cost 36 lakh rupee in Bangladesh, the same applies to all imported cars. The decision makers when buying cars is not the father but majority of the time the teenage son, and they are find it embarassing to purchase indian cars.

nitol and tata have very uphill battle to change their minds, taking into account import duties.

 

[damiendehorn]

According to a report by Financial Express, their starting price is apparently 14 lacs.
Financial Express :: Financial Newspaper of Bangladesh

highly unlikely this is mostly sales pitch, the manza in india is just under 9 lakh rupees, on top of this you have to add 300% duties, yup for the nano or ecs may be as this is under 1500cc. lets see how they do this, nitol always talk but we don't see much.

 

[livingdead]

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?

How do you import german assembled merc, are there separate dealers for them?
Also with this import duty very few will be buying new cars, unless there are some cars being manufactured there.

 

[Zabaniyah]

highly unlikely this is mostly sales pitch, the manza in india is just under 9 lakh rupees, on top of this you have to add 300% duties, yup for the nano or ecs may be as this is under 1500cc. lets see how they do this, nitol always talk but we don't see much.

That is true about Nitol

I agree with your doubt as to whether the Manza would be cheap. The Ford Fiesta (distributed by Anwar Group) costs 29 lacs. Those are imported from Thailand by the way.

But they are also selling the Vista, a hatchback. That might do well given the price remains competitive, along with good after sales service. No idea about quality since I am not familiar with Tata cars.

Though, I saw one Nano for the first time in my life in Baridhara. I laughed at its size

Seriously, it's so tiny! It's almost too cute too look at!

 

[livingdead]

That is true about Nitol

I agree with your doubt as to whether the Manza would be cheap. The Ford Fiesta (distributed by Anwar Group) costs 29 lacs. Those are imported from Thailand by the way.

But they are also selling the Vista, a hatchback. That might do well given the price remains competitive, along with good after sales service. No idea about quality since I am not familiar with Tata cars.

Though, I saw one Nano for the first time in my life in Baridhara. I laughed at its size

Seriously, it's so tiny! It's almost too cute too look at!

I too laughed when I saw segway. But then its made for different purpose.

Replace the word car with 'urban transport for lower middle class Indians who are riding two wheelers', if you want to know the design philosophy.

 

[damiendehorn]

How do you import german assembled merc, are there separate dealers for them?
Also with this import duty very few will be buying new cars, unless there are some cars being manufactured there.

There are many dealer who will import any car as long as you can pay, and trust me there is no shortage of liquid cash around. My uncle last year imported a Porsche cayenne, same dealers as the BMWs for 2.4crore and he's 55 years old lol, more then my London flat.
To buy a decent japanese new car you need at least 50 lakh taka cash, more for european cars, saw a few jags xjs an xfs so tata are here just with a different brand and not through direct dealerships. loans to buy cars are difficult to get now, but loads of show rooms are springing up and roads are clogged.

Now which ever manufacturer builds a manufacturing plant in Bangladesh, will dominate the market as they will have very little tax to pay, say Honda builds the factory, they could market new cars at under 25 lakhs.

 

[livingdead]

There are many dealer who will import any car as long as you can pay, and trust me there is no shortage of liquid cash around. My uncle last year imported a Porsche cayenne, same dealers as the BMWs for 2.4crore and he's 55 years old lol, more then my London flat.
To buy a decent japanese new car you need at least 50 lakh taka cash, more for european cars, saw a few jags xjs an xfs so tata are here just with a different brand and not through direct dealerships. loans to buy cars are difficult to get now, but loads of show rooms are springing up and roads are clogged.

Now which ever manufacturer builds a manufacturing plant in Bangladesh, will dominate the market as they will have very little tax to pay, say Honda builds the factory, they could market new cars at under 25 lakhs.

Lets ignore your personal story, not because its a lie but I tend to be more into data and statistics than 'my uncle did/said....'

I could not find sales figure but my assertion that new car sales is only for few (only very rich who can afford, also to show off) where as most sales will be dominated by second hand sales is supported by this blog.
Best Selling Cars – Matt's blog » Bangladesh: Toyota Corolla and Noah most popular – or is it the Mitsubishi Pajero?

I know its just a blog, and it might be wrong. I will be happy if somebody can find accurate sales figure.
The total number of brand new cars: 4500 (2010),3000(2009), 2050 (2008)
Total numer of reconditioned cars: 25500 (2010),26350(2009),14942(2008)

Here is the bit I do agree with the blog.
"
High taxes imposed on Indian imports make the Bengali car market very different to its neighbour India. Japanese brands do not suffer from high import taxes and as a result Toyota holds 80% of the market and should in all likelihood place the Corolla in pole position by far, a feat that would be absolutely impossible in India due to its high price there.

Another element to take into account is that the Bengali car market is only just starting to blossom, with the car still an extravagance only reserved to the elite, therefore having a ‘luxury’ car (in the region’s standards) on top of the sales ranking kind of makes sense. "

 

[my2cents]

Don't know which joker made that 70% thing? It's not even 1%. Go to BD and have a look - unless this crook has included Bajaj auto-rickshaws!

Tata has big presence in BD only in commercial sector with 70% market share. Now they want to penetrate the automobile sector.

Tata Motors enters Bangladesh car market

 

[my2cents]

3. On the other-hand we have mountains of "chhakra" India cars that began breaking down even after a month.

Can you name the 'chhakra' indian cars you have that break down in one month??? I can think of only few Tata Nano cars. They had issues in the beginning about catching fire which was later rectified by the company.