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.
Image Sources: Google Images
Sources: The Economic Times
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