Bangladesh
As Sri Lanka is
engulfed with its economic crisis, the new destination for Indian auto
companies seems to be Bangladesh that is on the brink of a major economic boom,
spurring auto majors to look eastwards.
Tata Motors,
Ashok Leyland, Mahindra and Bajaj Auto have stepped up their game through joint
ventures and begun identifying homegrown distributor groups to assemble a major
portion of their products in Bangladesh. These companies are firming up
launches and ramping up capacity as they offer a very high level of
customization to customers, reinforcing the product portfolio across all
segments in the region.
Tata Motors is
the largest commercial vehicle brand, including small & heavy CVs and buses
in Bangladesh with a two-third share. In the economic downturn caused by Covid,
the Bangladesh market continued to sparkle while most others suffered, said
Kaushik Narayan, CEO of Leaptrucks, a platform for the sale of trucks and
buses.
Emission
standards in Bangladesh also lag India’s and other developed nations. With a
wide range of value for money products available in their portfolio across
multiple emission standards, matching terrain and weather conditions, Indian
OEMs are uniquely positioned to cater to the requirements of the Bangladesh
market, Narayan said. Indian auto OEMs are capitalising on this growth story in
Bangladesh by making substantial investments in JV and assembly operations.
Ashok
Leyland is currently the market leader in bus and 16T (Medium and
Heavy commercial vehicle MHCV) segment. Indian passenger vehicles, two and
three wheelers, light trucks, buses saw an average sales growth of 15-20% in
Bangladesh in the last 2-3 years despite the dominance of Japanese
reconditioned vehicles.
Sources:
The Economic Times
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