Honda to set up new motorcycle plant in Bangladesh .

[Homo Sapiens]

Honda to set up new motorcycle plant in Bangladesh
by Autocar Pro News Desk Nov 05, 2017

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Bangladesh Honda, which began local assembly of Honda motorcycles in 2013, currently assembles the CD80, Dream Neo 110, Livo 110, CB Shine125 and CB Trigger 150.

Bangladesh Honda Ltd (BHL), Honda’s motorcycle business joint venture in Bangladesh, is to build a new motorcycle production plan to expand its production and sales volume. The company today held a groundbreaking ceremony to mark the start of construction in Munshiganj District, Dhaka Division in Bangladesh.

The ceremony was attended by the Minister of Industries, Amir Hossain Amu, MP, and other representatives from the Bangladesh government, as well as Hiroyasu Izumi, Ambassador Extraordinary and Plenipotentiary of Japan to Bangladesh. Representing Honda at the ceremony were Shinji Aoyama, Chief Officer for Regional Operations (Asia & Oceania) of Honda Motor Co, and Yuichiro Ishii, managing director and CEO of BHL.

BHL began local assembly of Honda motorcycles in Bangladesh in 2013 at a leased plant facility. At present, it assembles the CD80, Dream Neo 110, Livo 110, CB Shine125 and CB Trigger 150. It imports two models: the Wave α and CBR150R

Preparing for the future expansion of the market, BHL has acquired 25 acres at Abdul Monem Economic Zone (AMEZ) in Munshiganj District, Dhaka Division, which is located 50km southeast from Dhaka, Bangladesh. BHL plans to make the initial investment of 2.3 billion Bangladesh Taka, equivalent to US$29 million, for the land purchase and construction of the facilities.

The new plant is scheduled to begin motorcycle production in the second half of 2018 with initial annual production capacity of 100,000 units as the first step. BHL plans to continue to invest for expanding its production capacity of the new plant up to 200,000 units by 2021.

In addition to increasing production volume of motorcycles, the new plant will increase the level of local content sequentially.

Shinji Aoyama, Chief Officer for Regional Operations (Asia & Oceania) of Honda Motor Co, said, “We believe the Bangladesh motorcycle market is very promising with great potential to grow supported by the large population and the economy with steady growth. In conjunction with the government’s policy to enhance the industry through the localisation increase, we have decided to make further investment to enforce our production with our new plant. With the plant, we aim to contribute to the development of the industry, as well as to provide customers with affordable various products to meet the needs of customers in Bangladesh.”

The Bangladesh government revised its policy for localisation and reduced the supplemental duty this year. Reflecting this change, motorcycle prices declined, and the market is now growing rapidly. As of September 2017, the year-to-date industry-wide motorcycle sales reached 270,000 units, largely exceeding 2016 full-year sales. This trend of motorcycle sales expansion is expected to continue in 2018 and beyond.

http://www.autocarpro.in/news-international/honda-set-motorcycle-plant-bangladesh-26896

 

[idune]

Time to increase tax on imported honda to support local manufacturing. Will awami regime do it?

 

[EastBengalPro]

Honda to set up new motorcycle plant in Bangladesh
by Autocar Pro News Desk Nov 05, 2017

0 0 0 0 0

Bangladesh Honda, which began local assembly of Honda motorcycles in 2013, currently assembles the CD80, Dream Neo 110, Livo 110, CB Shine125 and CB Trigger 150.

Bangladesh Honda Ltd (BHL), Honda’s motorcycle business joint venture in Bangladesh, is to build a new motorcycle production plan to expand its production and sales volume. The company today held a groundbreaking ceremony to mark the start of construction in Munshiganj District, Dhaka Division in Bangladesh.

The ceremony was attended by the Minister of Industries, Amir Hossain Amu, MP, and other representatives from the Bangladesh government, as well as Hiroyasu Izumi, Ambassador Extraordinary and Plenipotentiary of Japan to Bangladesh. Representing Honda at the ceremony were Shinji Aoyama, Chief Officer for Regional Operations (Asia & Oceania) of Honda Motor Co, and Yuichiro Ishii, managing director and CEO of BHL.

BHL began local assembly of Honda motorcycles in Bangladesh in 2013 at a leased plant facility. At present, it assembles the CD80, Dream Neo 110, Livo 110, CB Shine125 and CB Trigger 150. It imports two models: the Wave α and CBR150R

Preparing for the future expansion of the market, BHL has acquired 25 acres at Abdul Monem Economic Zone (AMEZ) in Munshiganj District, Dhaka Division, which is located 50km southeast from Dhaka, Bangladesh. BHL plans to make the initial investment of 2.3 billion Bangladesh Taka, equivalent to US$29 million, for the land purchase and construction of the facilities.

The new plant is scheduled to begin motorcycle production in the second half of 2018 with initial annual production capacity of 100,000 units as the first step. BHL plans to continue to invest for expanding its production capacity of the new plant up to 200,000 units by 2021.

In addition to increasing production volume of motorcycles, the new plant will increase the level of local content sequentially.

Shinji Aoyama, Chief Officer for Regional Operations (Asia & Oceania) of Honda Motor Co, said, “We believe the Bangladesh motorcycle market is very promising with great potential to grow supported by the large population and the economy with steady growth. In conjunction with the government’s policy to enhance the industry through the localisation increase, we have decided to make further investment to enforce our production with our new plant. With the plant, we aim to contribute to the development of the industry, as well as to provide customers with affordable various products to meet the needs of customers in Bangladesh.”

The Bangladesh government revised its policy for localisation and reduced the supplemental duty this year. Reflecting this change, motorcycle prices declined, and the market is now growing rapidly. As of September 2017, the year-to-date industry-wide motorcycle sales reached 270,000 units, largely exceeding 2016 full-year sales. This trend of motorcycle sales expansion is expected to continue in 2018 and beyond.

http://www.autocarpro.in/news-international/honda-set-motorcycle-plant-bangladesh-26896

Thats great! More and more international companies are setting up their factories in Bangladesh.More challenges ahead for local manufacturing companies though like Walton.

 

[mb444]

Good stuff. Hopefully this will be springboard to at last getting a car manufacturing plant in the country.

 

[Bilal9]

Good stuff. Hopefully this will be springboard to at last getting a car manufacturing plant in the country.

All the right ingredients are already there for this.

1. The primary component to make car bodies and structures is cold-rolled steel sheet which we already make in large quantity and quality (and export as well). PHP and other Ispat manufacturers are leading the sector in this area. We are even self-sufficient in making our own billets.
2. Plus we have superb inexpensive labor who can be trained relatively easily for assembly tasks.

PHP has gone into piloting assembly/manufacture of Proton Malaysian automobiles in small quantity, as has Progoti for some 45+ years, I was hearing Nitol was looking for venture partners to start assembly as well.

Next will be the larger auto majors from Japan and Korea coming in to assemble/re-export at least some of their lower-end economical cars like they did in India. In our case you can also count in China like in Pakistan.

These large auto-majors cannot let the local brands take the lead in export markets by using cheap local labor like they saw with Walton....

Honda to set up new motorcycle plant in Bangladesh
by Autocar Pro News Desk Nov 05, 2017

0 0 0 0 0

Bangladesh Honda, which began local assembly of Honda motorcycles in 2013, currently assembles the CD80, Dream Neo 110, Livo 110, CB Shine125 and CB Trigger 150.

Bangladesh Honda Ltd (BHL), Honda’s motorcycle business joint venture in Bangladesh, is to build a new motorcycle production plan to expand its production and sales volume. The company today held a groundbreaking ceremony to mark the start of construction in Munshiganj District, Dhaka Division in Bangladesh.

The ceremony was attended by the Minister of Industries, Amir Hossain Amu, MP, and other representatives from the Bangladesh government, as well as Hiroyasu Izumi, Ambassador Extraordinary and Plenipotentiary of Japan to Bangladesh. Representing Honda at the ceremony were Shinji Aoyama, Chief Officer for Regional Operations (Asia & Oceania) of Honda Motor Co, and Yuichiro Ishii, managing director and CEO of BHL.

BHL began local assembly of Honda motorcycles in Bangladesh in 2013 at a leased plant facility. At present, it assembles the CD80, Dream Neo 110, Livo 110, CB Shine125 and CB Trigger 150. It imports two models: the Wave α and CBR150R

Preparing for the future expansion of the market, BHL has acquired 25 acres at Abdul Monem Economic Zone (AMEZ) in Munshiganj District, Dhaka Division, which is located 50km southeast from Dhaka, Bangladesh. BHL plans to make the initial investment of 2.3 billion Bangladesh Taka, equivalent to US$29 million, for the land purchase and construction of the facilities.

The new plant is scheduled to begin motorcycle production in the second half of 2018 with initial annual production capacity of 100,000 units as the first step. BHL plans to continue to invest for expanding its production capacity of the new plant up to 200,000 units by 2021.

In addition to increasing production volume of motorcycles, the new plant will increase the level of local content sequentially.

Shinji Aoyama, Chief Officer for Regional Operations (Asia & Oceania) of Honda Motor Co, said, “We believe the Bangladesh motorcycle market is very promising with great potential to grow supported by the large population and the economy with steady growth. In conjunction with the government’s policy to enhance the industry through the localisation increase, we have decided to make further investment to enforce our production with our new plant. With the plant, we aim to contribute to the development of the industry, as well as to provide customers with affordable various products to meet the needs of customers in Bangladesh.”

The Bangladesh government revised its policy for localisation and reduced the supplemental duty this year. Reflecting this change, motorcycle prices declined, and the market is now growing rapidly. As of September 2017, the year-to-date industry-wide motorcycle sales reached 270,000 units, largely exceeding 2016 full-year sales. This trend of motorcycle sales expansion is expected to continue in 2018 and beyond.

http://www.autocarpro.in/news-international/honda-set-motorcycle-plant-bangladesh-26896

Great news! However Honda has been assembling motorcycles locally (mostly CD-80 model) with a plant operated by the govt. (Steel and Engg. Corp.) since the 1960's....all Honda motorbikes sold locally were assembled locally (import was not allowed until very recently).

Story from another paper....Asian Age. In pretty bad English, I might add.

------------------------------------------------------------------------------------------------

Published: 12:22 AM, 06 November 2017

Honda to produce motorbike next year
AA Correspondent

The Japanese Honda Motor Company has planned out a project to manufacture motorcycle in Bangladesh next year as the company's concern "Bangladesh Honda Private Limited" is setting up a motorcycle assembling and manufacturing plant in the country.

Industries Minister Amir Hossain Amu as the chief guest today laid the foundation stone of the factory at privately-owned Abdul Monem Economic Zone at Gazaria in Munshiganj district.

Among others, Bangladesh Economic Zones Authority Executive Chairman Paban Chow-dhury, Japanese Ambassador to Bangladesh Hiroyasu Izumi, Head of Honda Motors for Asia and Oceania Region Shinji Aoyama and Managing Director of the Bangladesh Honda Private Limited Yuichiro Ishii were present at the function.

Amu said the factory will play a vital role in expediting the motorcycle industry in the country and create employment opportunities. "The government has set a plan to increase the country's motorcycle production to 10 lakh and employment opportunities in the sector to 16 lakh by 2025," he added.

Under the leadership of Prime Minister Sheikh Hasina, he said, the government is implementing different mega projects, including Padma Multi-purpose Bridge Project and Dhaka Metro Rail Project, to develop the country. Japanese Honda Motor Company started its operation through opening a joint venture company with the state-owned Bangladesh Steel and Engineering Corporation (BSEC) called 'Bangladesh Honda Private Limited' in 2013 and set up a factory in Gazipur for assembling motorcycle.

BSEC owns 30 percent share of the company which has been maintained in the new factory. Honda Motor Company is the world's largest motorcycle manufacturing company, which wants to start production in the factory in 2018. As per the plan, they will produce one million motorcycles in the first year. In the fifth year, they want to increase production to three million units, official said.

Honda is investing in the new factory about US$4.40 crore or about Taka 350 crore. Initially, the new factory will create employment opportunities for around 300 people. Later, it will be 500 people, they said.

Honda Motor Company produces motorcycles, cars, robots, equipment for electricity and fuel and aircraft products. According to the latest financial report, the company produced 66.91 lakh units of motorcycles in the six months (April 1 to September 30) of current year 2017, which was about 14 percent more than the same period last year.

Honda is a well known name in the motorcycle market of Bangladesh. Many people in the country still call motorcycles as Honda.

The concerned people said that Honda will increase their production capacity in new factories. The factory will increase the value addition in the country and the price of the motorcycle is expected to be reduced for local customers.

-AA Correspondent, Munshiganj
---------------------------------------------------------------------------------------------

My note on this news - To be honest, I'd like to see Honda's 'upstream parts suppliers' for major basic parts needing labor-intensive value addition, such as forged crankshafts and machined cylinders as well as electrical components and engine wiring components, set up shop here. This is where the cost saving will really pay dividends - especially if the volume exceeds one million motorbikes a year.

If they don't (meaning if they continue importing parts from their Thailand and Indonesia plants) - then Walton will lead the way in upping the ante again, as they have in the past.

Localization (local content) and indigenization is the name of the game in this business -when you are manufacturing in low labor-cost country.

 

[bdslph]

other Brand which dont have plant in BD must pay higher tax so the local produced plant can sale easily plus the tax should not be too much

 

[MULUBJA]

Time to increase tax on imported honda to support local manufacturing. Will awami regime do it?

I think BD already very high tax. Indigenization do not happen overnight. Focus on it and build your strength. Good luck.

 

[Bilal9]

By the way - three million Honda motorbikes from just this one factory in Bangladesh in a few years will be interesting.

Hero Honda secured the position of the world's largest two-wheeler manufacturer last year (2016) with the production of 6.64 million motorcycles in that year.

https://www.drivespark.com/two-whee...production/articlecontent-pf44023-018049.html

 

[Nilgiri]

By the way - three million Honda motorbikes from just this one factory in Bangladesh in a few years will be interesting.

Yeah, just apply Walton school ("private" sector subsidiary of BBS School) projection math.

Have a hard time reading do you?

BHL plans to continue to invest for expanding its production capacity of the new plant up to 200,000 units by 2021.

200k = 3 million. BD STRONK @Aung Zaya

Oh wait here is your later "source":

http://www.theindependentbd.com/post/122300

Lets look at all these varying numbers in total dissonance from each other:

EXHIBIT A: "The government has set a plan to increase the country's motorcycle production to 10 lakh and employment opportunities in the sector to 16 lakh by 2025," he added.

EXHIBIT B: Honda Motor Company is the world's largest motorcycle manufacturing company, which wants to start production in the factory in 2018. As per the plan, they will produce one million motorcycles in the first year. In the fifth year, they want to increase production to three million units, official said.

EXHIBIT C: Honda is investing in the new factory about US$4.40 crore or about Taka 350 crore. Initially, the new factory will create employment opportunities for around 300 people. Later, it will be 500 people, they said.

Bwahahaha. See what happens when you cherry pick one line from a crap source that is all over the place to begin with?

A 44 million USD investment producing 1 million motorcycles with just 300 workers . Dat awesome BBS-shkool productivity. More likely the official (and/or editor of this "publication") doesnt understand difference between a million and a lakh.

100,000 capacity (majority of the parts are definitely not coming from BD let me tell you the right now) for year 1 seems FAR more likely doesn't it....for a 44 mil USD investment? I mean isn't that what the headline article reported in the first place?:

The new plant is scheduled to begin motorcycle production in the second half of 2018 with initial annual production capacity of 100,000 units as the first step. BHL plans to continue to invest for expanding its production capacity of the new plant up to 200,000 units by 2021.

But nope the "glorious all hail BBS eternally" Bilal latched onto the 1 million - 3 million number as "interesting" without a moment to think how many motorcycles are even sold in BD in first place (the remaining difference surely must be exported in the immensely credible, established and validated "Made in Bangladesh" brand just like the glorious super-MNC Walton accomplished already in its yearly+transparent fiscal reports). Then he honestly feels he can be taken seriously elsewhere LOL. @gslv mk3

This article, so glorious in its quality after all haha:

"The factory will increase the value addition in the country and the price of the motorcycle is expected to reduce the concerned people." (Some form of population control? LOL)

The very title: "Honda to produce motorbike in Bangladesh next year"

As of September 2017, the year-to-date industry-wide motorcycle sales (not production) reached 270,000 units, largely exceeding 2016 full-year sales.

My god what a malnourished consumption BD has. 360k this year lets say (mostly Bajaj imported*).....for a population of 170 million. 7 times less per capita than India. I don't know how far back one needs to go to see that level of per capita consumption in India, maybe back to the 60s/70s? (Brace yourselves for BD was only "made" from 1971 "argument").


*:

 

[mb444]

By the way - three million Honda motorbikes from just this one factory in Bangladesh in a few years will be interesting.

Hero Honda secured the position of the world's largest two-wheeler manufacturer last year (2016) with the production of 6.64 million motorcycles in that year.

https://www.drivespark.com/two-whee...production/articlecontent-pf44023-018049.html

Standard BAL inability to distinguish between lakhs and millions at play here I think. The original post mention 200k as the planned full capacity but your next post inflates it to millions.... I think 200k is likely the target. It's still a positive thing.

 

[Bilal9]

Standard BAL inability to distinguish between lakhs and millions at play here I think. The original post mention 200k as the planned full capacity but your next post inflates it to millions.... I think 200k is likely the target. It's still a positive thing.

I was just going by the figure The Asian Age quoted. It was from their site. In any case 200k per year is more realistic and from just one factory by itself is nothing to scoff at...

 

[mb444]

I was just going by the figure The Asian Age quoted. It was from their site. In any case 200k per year is more realistic and from just one factory by itself is nothing to scoff at...

Asian age and their illiterate journalists.... bunch of retards... lol... I pity these fools and standards at which they operate...

 

[Bilal9]

Asian age and their illiterate journalists.... bunch of retards... lol... I pity these fools and standards at which they operate...

I should've known better quoting their 'content'...

The One Million/Three Million figure is here too.

http://www.theindependentbd.com/post/122300

 

[mb444]

I should've known better quoting their 'content'...

The One Million/Three Million figure is here too.

http://www.theindependentbd.com/post/122300

You have to wonder the level of quality control and editorial standards in play.... our people will believe any crap they read... $29m investment to produce 1m unit at $29 a motorcycle.... that BD efficiency..... we are world beaters in BS... lol

 

[Bilal9]

There was a study released in Bangladesh regarding Motorcycle production policy sometime back in 2012. Although dated, and the figures heavily obsolete, at the time of its publication the total production of motorcycles just by Walton and Runner in the country (other than the scores of CKD assemblers) was 5 lakh units per year. I am pretty certain the figure has doubled by now, with the advent of Hero Honda and TVS producing bikes locally.

https://ibfb.org/upload/resource/RFILE20160218054932.pdf