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Old June 28th, 2008, 04:37 AM   #1
ajprobashi
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Bangladesh Automotive Industry

Is there any new venture about that idea.?I knew Lipu made several with his team but do you think that making cars by Bangaldeshis for Bangladeshis is a good idea? Foreing cars are too expensive but with Bangladesh's cheap labors and with HHO technology I think Bangladesh can really go far.
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Old June 29th, 2008, 05:25 AM   #2
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HHO isnt yet proved technologically to provide hydrogen fuel on demand. But, if it becomes a reality, then surely it will be a milestone in technology.
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Old June 29th, 2008, 06:54 AM   #3
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possible
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Old June 30th, 2008, 12:38 PM   #4
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Will not happen soon but inevitable around 2020 when the middle class purchasing power goes into a respectable level.
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Old June 30th, 2008, 12:49 PM   #5
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Bangladesh needs to go for join venture in automobile industry. We can do it in steps:

1. Initiate motorbike manufacturing.

2. Start assembly of Japanese/Korean cars locally.

3. Setup joint venture with foreign manufacturerers.

4. Get TOT and start a full fledged local auto industry

Last edited by nayeem007; August 3rd, 2009 at 09:12 PM.
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Old July 1st, 2008, 08:57 AM   #6
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Quote:
Originally Posted by nayeem007 View Post
Bangladesh needs to go for join venture in automobile industry. We can do it in steps:

1. Initiatve motorbike manufacturing.

2. Start assembly of Japanese/Korean cars locally.

3. Setup joint venture with foreign manufacturerers.

4. Get TOT and start a full fledged local auto industry
Great list! These are the exact steps taken by Korea, Malaysia and more recently Pakistan, who got into the game.
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Old July 1st, 2008, 05:14 PM   #7
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The demand for automobile is extremely low compared to our level of population, even with the increaseingly surge of automobile ownership, until that picks more justifying building a new car factory won't work.
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Old July 2nd, 2008, 07:59 AM   #8
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Demand is not that low compared to neighboring countries.

People still need to ride tempos, baby taxis, cabs etc. We're not limiting this to private ownership.

Bangladesh may not have a big middle-class but lots of people own businesses. I think the average 'general store' owner can afford a three lakh Taka (Tk. 300,000) car.

The way they are bringing out cheap cars (some are priced at Two lakh as you know -- the Nano ) there is bound to be increased demand.

Assembled cars from chinese components can easily compete with re-conditioned car prices. Pakistani market is an excellent example.
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Old August 26th, 2008, 05:30 PM   #9
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Quote:
Originally Posted by manbil777 View Post
Demand is not that low compared to neighboring countries.

People still need to ride tempos, baby taxis, cabs etc. We're not limiting this to private ownership.

Bangladesh may not have a big middle-class but lots of people own businesses. I think the average 'general store' owner can afford a three lakh Taka (Tk. 300,000) car.

The way they are bringing out cheap cars (some are priced at Two lakh as you know -- the Nano ) there is bound to be increased demand.

Assembled cars from chinese components can easily compete with re-conditioned car prices. Pakistani market is an excellent example.
I second you, it looks like a promising plan.
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Old August 3rd, 2009, 09:15 PM   #10
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Maybe Bangladesh can manufacturer something better than this!

Taxicabs worth Tk 80 crore turn into junk
Cheap Indian cars are to blame

Shakhawat Hossain

Taxicab operators are now counting the cost of their wrong choice of vehicles that forced them to pull 90 per cent of cars out of service much before their average lifetime expired.
Their association estimates that return on their Tk 200 crore investment in the nascent service in last six years was much less than expected as light vehicles with low engine capacity lost their resale value. Cars worth more than Tk 80 crore turned into junks.
The blame goes to cheap Indian cars with low capacity engines, which made their way into Dhaka’s streets due to cost-cutting exercise of operators and promotional prices offered by local car dealers.
Affected cab operators now point their finger at the government’s wrong policy that paved the way for low quality Indian cars and forced more than a half of taxicab companies to fold within years of operation.
The insolvent operators are now avoiding the commercial banks which invested in taxicab services. Some others have their garages filled with junk cars and scraps.
In 2003, the communications ministry gave permission to 10,000 taxicabs to ply in the city, opening the floodgate for poor quality Indian cars. Initially these taxicabs were given 8-year road permit which was later extended to 10 years.
But within five years, taxicab operating companies which invested crores of taka through bank loans realised that their investment went down the drain.
‘Indian made cars are not viable for taxicab service,’ said Mannan Chowdhury, president of Bangladesh Association of Taxicab Operators.
The realisation is, however, late and proved costly as more than 70 operators lost about Tk 80 crore in taxicab business.
Only 1,000 taxi cabs are in operation in the capital while the rest are turned into scrap, he added.
Anudip Auto Ltd, which got permission to run the highest number of nearly 1600 taxicabs, is now guarding two yards of scraps of Indian cars — one at Mirpur and the other in the outskirt of the capital.
Cab Express (BD) Ltd. Cab One, Cab Bangla Ltd, Cab Salida Ld, Cosmo Cab (Pvt.) Ltd, Nihon Taxi Cab, Cosmo Cab (Pvt.) Ltd, Yellow Lines Ltd and Orion Texi Cab (Pvt.) Ltd were among the companies which pressed low-quality Indian cars into service and suffered losses.
Out of 70 operators, 40 have already folded their business and distanced themselves from banks after failing to repay loans.
Banks and leasing companies like Islamic Bank, UCBL, ICB Islamic Bank formerly known as Oriental Bank, AB Bank, Phoenix and Uttara Finance and Investments Limited, which provided the loans, are planning to file cases against the loan defaulters.
An official of the Islamic Bank on condition of anonymity told New Age they are following rules and regulations to realise their loans as they found many taxicab companies ‘simply unresponsive’ despite repeated reminders.
Taxicab operators last week at a press conference demanded waiver of bank loan interest. They have been urging the communications ministry for the last couple of years to intervene into the matter for the protection of their business.
Some operators including Navana Tax Cab and Nippon, however, stood out from the rest, and they are doing well with Japanese cars.
Navana manager Ainul Kabir Chowdury told New Age that his company operates around 400 cars, all Japanese, to run their cab business since 2000.

Lack of feasibility study to determine whether the Indian cars were viable for running such business was the main reason for the present debacle, he pointed out.
He said the government has of late realised the mistake and decided to allow cars with engine capacity of above 1300 cc for taxicab services from the current fiscal year

http://www.newagebd.com/2009/aug/04/front.html
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Old August 4th, 2009, 07:50 AM   #11
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All Indian made vehicles should be completely banned to operate in Bangladeshi roads! These cheap vehicles are quite unreliable for Bangladesh and cause alotta pollution and problems!
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Old August 4th, 2009, 08:44 AM   #12
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Can't be done, infact no product can be banned under current WTO regime.
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Old August 4th, 2009, 10:33 AM   #13
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Quote:
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All Indian made vehicles should be completely banned to operate in Bangladeshi roads! These cheap vehicles are quite unreliable for Bangladesh and cause alotta pollution and problems!
I don't think the likes of Maruti have a glorious reputation anyway. Market will take care of itself. No one wants to lose money.
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Old August 4th, 2009, 11:18 AM   #14
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lol no wonder u see loadz of Toyota's in BD roads XD
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Old August 4th, 2009, 12:18 PM   #15
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Quote:
Originally Posted by nayeem007 View Post

Taxicabs worth Tk 80 crore turn into junk
Cheap Indian cars are to blame
Are they talking abt the yellow ones or the black ones? Nazmul Huda and Tareq Rahman are to blame for this.
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Old August 4th, 2009, 12:29 PM   #16
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Quote:
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All Indian made vehicles should be completely banned to operate in Bangladeshi roads! These cheap vehicles are quite unreliable for Bangladesh and cause alotta pollution and problems!
You'd ban all Indian cars from Bangladesh simply because cheapskate Bangladeshi taxi operators chose models with small engines that didn't stand up to heavy use as taxis?
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Old August 4th, 2009, 12:48 PM   #17
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Can't be done, infact no product can be banned under current WTO regime.
Well if you can ban harmful products such as poultry and pork for birdflu and swineflu why not cars for causing pollution.
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Old August 4th, 2009, 12:56 PM   #18
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Can't ban any product except food which may cause health problems.
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Old August 4th, 2009, 03:54 PM   #19
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Guys we don't need to ban cars from a certain country, the reason most Taxi cab owners bought Indian cars is because the government made any new cars below 1300 cc tax free. Most of the small Indian cars met that criteria.(Toyota corolla and others are over 1600 cc). Also, additional tax was imposed on used cars, even though reconditioned Japanese cars are much better than Indian/Chinese ones.

So all we need to do is fix the taxing policy..
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Old August 5th, 2009, 05:11 AM   #20
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I'm always for a good quality product, be it Japanese, Indian or from whatever country. From KG to 12th grade, my school ride in Kuwait was a Tata bus. In fact 80% of the school buses were Tata. They had a reputation for withstanding the 50+ deg Celsius of the desert and the frequent sandstorms.

The problem with the Maruti vehicles is the low powered engine and combined with the poor condition of our roads made all these taxicabs clunkers within a very short time.

An uncle of mine was in the taxicab business but opted for Korean Daewoo cars. These were the AC cabs but the cars were just as bad as the Marutis and he folded in a short time.
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