Indian auto manufacturers have turned to Bangladesh looking for market expansion, reports the New Indian Express.
Bangladesh has a growing market with sales forecast of as much as $2.5 billion per year, said the report published on 3 February.
Tata Motors, Ashok Leyland, Hero Motocorp, Bajaj, Eicher, Mahindra, TVS, Maruti made reached the capital city of Dhaka as their “capacity, competence and geographical proximity” to Bangladesh, puts them in an ideal position to meet this demand, an official in Indian High Commission was quoted to have said.
“The demand for automobiles has gone up in Bangladesh with rapid economic growth and improving road infrastructure in the last few years. This had led to an increase in interest from Indian companies in the Bangladesh automotive market. There is also interest in Bangladesh in collaboration with Indian companies,” the official was also quoted to have said.
It added that as per statistics, the size of Bangladesh automotive market as per the trend is – 36,000 for commercial vehicles, 2,50,000 for two-wheelers and 25,000 in passenger car segment.
In the meantime, some of the Indian auto giants forged partnership with Bangladesh counterparts, it further said.
Tata Motors is setting up an assembly plant in Jessore in collaboration with Bangladesh's Nitol Niloy Group. Hero Motor Corp is also setting up two-wheeler plant in Jessore while another automaker Ashok Leyland is also establishing their plant in Bangladesh, according to the report.
In total Indian investments in the sector in Bangladesh are pegged to be around $ 3 billion, it reads.
India is the 6th largest producer of automobiles in the world with an average annual production of 24 million vehicles and Bangladesh is 5th largest automotive market.