Asian Motorbikes allowed to manufacture 500cc Kawasaki motorcycles

[Black_cats]

Asian Motorbikes allowed to manufacture 500cc Kawasaki motorcycles

INDUSTRY​

Mahfuz Ullah Babu
22 March, 2022, 10:40 pm
Last modified: 22 March, 2022, 11:00 pm

Asian Motorbikes allowed to manufacture 500cc Kawasaki motorcycles

The move comes amid growing market demand for stronger motorcycles and an increasing interest of two-wheeler investors

www.tbsnews.net

The move comes amid growing market demand for stronger motorcycles and an increasing interest of two-wheeler investors​

Asian Motorbikes Ltd, the distributor of Japanese Kawasaki motorcycles in Bangladesh, has been allowed to locally manufacture motorcycles with up to 500 cubic centimetre (cc).

The industries ministry approved the second such nod for big bike manufacturing plants in the country, to Asian Motorbikes on Sunday.

Earlier, the government approved Ifad Motors to manufacture Royal Enfield bikes in October last year.

The move comes amid growing market demand for stronger motorcycles and an increasing interest of two-wheeler investors. The government is also amending its import policy order, which currently bars any import of motorcycles having over 165 cc engine, and their parts or raw materials.

According to the draft of the upcoming order, raw material and parts to locally manufacture up to 500 cc motorcycles can be imported into the country. However, completely built bikes over 165 cc engines cannot be imported.

Motorcycle manufacturers welcomed the much-delayed government moves to come out of the bizarre restriction on motorcycle engine capacity, which is only seen in Sri Lanka other than Bangladesh.

But, confusion remains regarding local road permits for 500 cc bikes and which is yet to be reformed.

Biplob Kumar Roy, chief executive officer of TVS Auto Bangladesh, the second-highest seller of two-wheelers in the country among the Indian makes, told The Business Standard, "The answer of the question regarding local market sales should be clear before we invest in manufacturing facilities for higher cc bikes."

Safat Ishtiaq, head of operations of Asian Motorbikes, on the other hand, thinks that if the import policy order sticks to its draft, local market sales would be possible there as soon as the approved companies can launch locally manufactured higher cc bikes.

"Having a great degree of assurance from the government regarding local road permits we decided to pursue the plans for investment in the factory and technical collaboration with our principal Kawasaki Heavy Industries of Japan," he said.

"We are waiting for the draft import policy order to be finalised and published, before entering the collaboration agreement," he said.

He believes the import policy order is the key that has been dictating the relevant state authorities' stance regarding motorcycle capacity, registration, and road permits.

When the import policy order increased the motorcycle cubic capacity limit to 165 from 155 four-five years back, nothing else was needed for the BRTA to register the bikes.

However, industry executives said, investments in manufacturing bikes with higher cubic capacity solely for export is not feasible in Bangladesh as the manufacturing ecosystem is still far from being competitive, in comparison with the regional two-wheeler export giants including India, Thailand and Indonesia.

Bangladeshi factories can achieve competitiveness only after they thrive in the local market, they said.

Safat Ishtiaq said Asian Motorbikes has secured a 10-acre industrial plot at Bangabandhu Sheikh Mujib Shilpa Nagar in Chattogram.

The company aims to go into production by mid-2023.

Meanwhile, Ifad Motors also is building its Royal Enfield manufacturing plant in Bangabandhu Sheikh Mujib Shilpa Nagar with a target to begin production by next year.

Suzuki, Runner and a few other brands are also in the cue to come up with their higher cc motorcycles in Bangladesh.

Asian Motorbikes allowed to manufacture 500cc Kawasaki motorcycles

The move comes amid growing market demand for stronger motorcycles and an increasing interest of two-wheeler investors

www.tbsnews.net

 

[bluesky]

I believe the two-wheelers with upto 500 cc engine are not for the local consumption but for consumption in other countries. Bangladesh road system is insufficient to handle 500 cc motorbikes.

In Japan, I can see motorbikes with even 1200 or 1300 cc engines usually driven by the young people.

By the way, I have seen people in BD with four passengers riding a 90 cc bike. Our macho culture is so unruly that people would think that it is within rules to drive a 500 cc bikes with 8 passengers.

I don’t know how they will do it but people are meritorious enough to invent some ways to do so. After all, this is Golden Bangladesh.

 

[Abu Shaleh Rumi]

Now welcome more road accidents...

 

[Bilal9]

Now welcome more road accidents...

These 500cc and up bikes will be quite expensive, only a few can afford them.

I personally know some younger bhais who own 1200 cc Harleys and late model Haybusas (1300 cc). They take these to some abandoned airfields and ride them, as those aren't road legal. Ditto with some supercars (Ferraris and Huracans). These people are loaded.

I believe the two-wheelers with upto 500 cc engine are not for the local consumption but for consumption in other countries. Bangladesh road system is insufficient to handle 500 cc motorbikes.

In Japan, I can see motorbikes with even 1200 or 1300 cc engines usually driven by the young people.

By the way, I have seen people in BD with four passengers riding a 90 cc bikes. Our macho culture is so unruly that people would think that it is not against rules to drive a 500 cc bikes with 8 passengers riding it. I don’t know how they will do it but people are meritorious enough to invent some ways to do so.

After all, this is Golden Bangladesh.

If they allowed manufacture, then road use for 500 cc bikes is probably legal too. But we have to see what BRTA says, they are the local DMV authority.

 

[Bilal9]

If Asian Motors really wants to go toe to toe with Royal Enfield, they should start assembling the Estrella BJ250 series for local sales. Now that is a dead ringer for a Retro British cafe-racer like the Enfield is and at probably a cheaper price point than the 350 Enfields. Rides low like a cruiser too, what's not to like?....

Custom

RS Model

Latest RS model 2022

 

[bluesky]

Another feel good spin. BD should stick with making underwears

Why do you think so? Is it because India cannot produce 500 cc engines? Stop your smelly mouth from blabbering.

Indians cannot even produce good clothing.

 

[-=virus=-]

Why do you think so? Is it because India cannot produce 500 cc engines? Stop your smelly mouth from blabbering.

Indians cannot even produce good clothing.

 

[Bossman]

Why do you think so? Is it because India cannot produce 500 cc engines? Stop your smelly mouth from blabbering.

Indians cannot even produce good clothing.

Neither can BD. I am not even sure it can make a 70 CC engine. Should import bikes from Pakistan. They are the best for BD environment and will replace the human rickshaws.

 

[Species]

Neither can BD. I am not even sure it can make a 70 CC engine. Should import bikes from Pakistan. They are the best for BD environment and will replace the human rickshaws.

Pakistan is not known for automotive manufacturing and it's more convenient to import directly from China than buy assembled products from Pakistan, both quality-wise and price-wise.

Although, Pakistan could be a good competitive exporter of fruits and vegetables to Bangladesh. For that, Pakistan could lease its cultivable lands to Bangladeshi businesses as Uganda, Tanzania and Gambia have already done.

 

[Bilal9]

View attachment 826493
View attachment 826494

One trick Pony (sheyaler kumir chhana) hamara Royal Enfield....

Designed in the UK, parts imported from all over the world and assembled in Chennai....

It's not a bad bike, but how many are sold? Market is saturated.

Reliability is a huge issue too. If it's such a banging success, then why does Enfield go to termite countries like Bangladesh and try to setup assembly plants there??

Please don't hijack the thread. Like @Bossman did.

Another off-topic post, I will report your a$$.

Neither can BD. I am not even sure it can make a 70 CC engine. Should import bikes from Pakistan. They are the best for BD environment and will replace the human rickshaws.

Please don't talk out of your rear end on things you have no clue about.

 

[BlindEagle]

Another feel good spin. BD should stick with making underwears

Cry me a river when your mom is strapped in our underwear

Neither can BD. I am not even sure it can make a 70 CC engine. Should import bikes from Pakistan. They are the best for BD environment and will replace the human rickshaw

Nah, with Pakistan’s piling debt they can work

 

[K_Bin_W]

In this day and age, we should be able to make our own bikes if not than there is something very wrong.

 

[Bilal9]

There are multiple Homegrown bike brands in Bangladesh that are basically made from scratch (frames and other components are CAD designed and fabricated from basic level). Two of the famous ones are Runner and Walton, though Walton has concentrated more on making appliances lately (more profitable), thanks to competition from bikes assembled locally from Chinese parts (price leader market). Honda, Suzuki and Yamaha are also manufacturing locally.

Runner makes some good bikes locally but being business people, they concentrate on the popular segment (price leader segment which is growing by leaps and bounds). Three of the more popular Runner bikes reviewed below. The last one is newer.

Indian Brands such as TVS, HERO, Bajaj have manipulated Bangladeshi tariffs to such an extent that they bring in parts almost Tariff-free from India, assemble bikes from those parts locally and can offer them cheaper in local market than bikes Made in Bangladesh. No parts are made in Bangladesh, so value addition is limited to screwing SKD subassemblies together. This in spite of the fact that local labor costs are far lower than China and even India (Half) whereby making parts locally would make more profit.

Bangladeshi Harami Customs Tariff-deciders take bribes from Indian brand majors and will not do anything about this to protect local producers. This is the complete opposite of what happens in India where customs people will block Bangladeshi imports to Indian market any chance they get, so Indian mfrs. get the help they need.

Indians are doing their job, meanwhile Bangladesh customs does nothing....

This state of affairs has gone on long enough and AL chetona folks are fully in cahoots to let Indian brands dominate Bangladeshi Motorcycle market, to the detriment of local Motorcycle Industry. So much so, that no new bike mfr. in Bangladesh thinks it profitable to set up any manufacturing expansion. I remember the afsoos video of the owner of Runner in this regard where he mentioned that his parts imported cost more than parts imported by Hero, TVS and Bajaj. He got no help from Bangladesh customs suwars on this so he got lower the retail price of his products.

Some urgent steps need to be taken to increase tariffs on Motorcycle parts (at least in certain categories first) for gradually helping develop the local parts mfr. eco-system, which exists in say, Indonesia, China and of course, India - which happened in the 90's and early 2000's with JV ToT collaboration from Suzuki (TVS), Kawasaki (Bajaj) and Honda (Hero).

First, Tariff needs to be increased on SKD (Semi-Knocked-Down) motorcycle kits, then after a year on CKD (completely-knocked-down) kits which means discrete parts.

The local assemblers (Honda, Suzuki, Yamaha, Karnaphuli, Asia Motors et al) will need to start manufacturing parts locally and increasing tariffs will be a way to encourage them to do that. If they can't - they must submit plans to invest in parts manufacturing locally. The local market cannot be built with parts imported from other countries forever.

As some parts will be difficult to make locally in initial stages (electronic ignition modules, electronics, carburetors, engines) they will get tariff increases last. But those will also be increased gradually until we have 100% local parts manufacture.

We should increase import tariffs on simpler items like seats, tyres, rims, spokes, stamped Sheetmetal components such as mudguards, plastic parts such as engine covers, electrical items such as head/tail lights, capacitor ignition/spark assemblies, LED parts, completed/partial tube bike frames, Resin/ABS plastic/GFRP/CFRP cladding, shock absorbers, brake pads, bike chains/gearsets immediately, in fact they should be doubled with zero delay.

At the same time - tariff should be reduced for input materials for motorcycle parts (such as cold rolled steel sheet for tubes and heavy sheet/plate for bike chains, gearsets and sprockets). Ditto for resin and ABS/PEEK plastic chips for injection molded impact-resistant cladding and mudguards.

This will encourage even foreign parts mfrs. from Korea and China to set up shop locally.

Those parts can easily be made locally and we need to increase the percentage of local content for motor bikes manufactured locally, like they are done in Pakistan. I encourage companies from India and Pakistan to set up shop locally to start manufacturing parts.

The point is - the local value-add component in any manufacturing in Bangladesh needs to be at least higher than other low cost countries (India for example), so that our products can compete price-wise in the local market and also for export with other countries.

 

[Bossman]

Pakistan is not known for automotive manufacturing and it's more convenient to import directly from China than buy assembled products from Pakistan, both quality-wise and price-wise.

Although, Pakistan could be a good competitive exporter of fruits and vegetables to Bangladesh. For that, Pakistan could lease its cultivable lands to Bangladeshi businesses as Uganda, Tanzania and Gambia have already done.

That’s where you are wrong. In Pakistan small bikes are a cottage industry with 98% local content. They call them Chinese bike as a marketing ploy. Plus the branded manufacturers are also very big with same percentage of local content.

Cry me a river when your mom is strapped in our underwear


Nah, with Pakistan’s piling debt they can work

At least my mom is not putting into 20 hours in a sweat shop to put a bowl of rice on the table to feed a lazy bum like you because you spend all your time trying to give a spin to Bangladesh on a Pakistani forum.

 

[Bilal9]

^^ Guys can we stop talking about Pakistani bikes?

That was not the subject of the thread...