In a joint venture, Ashok Leyland opens new assembling facility in Dhaka.

[Homo Sapiens]

In a joint venture, Ashok Leyland opens new assembling facility in Dhaka
The project is a collaboration between the company and IFAD Autos of Bangladesh
T E Narasimhan | Chennai February 2, 2017 Last Updated at 18:40 IST

Harsh Vardhan Shringla, High Commissioner of India to Bangladesh along with Vinod K Dasari, CEO and MD, Ashok Leyland, Anuj Kathuria, President – Global Trucks, Ashok Leyland and Taskeen Ahmed, MD IFAD Autos at the opening of Ashok Leyland Bangladesh Assembly Plant in Dhaka. Photo: PTI


Ashok Leyland on Thursday announced the opening of its new assembly plant in Bangladesh capital Dhaka.

Built over a period of 15 months, the plant is spread over an area of 37 acres. The project is a collaboration between the company and IFAD Autos of Bangladesh. The latter will invest around Rs 75 crore in the facility.

Vinod K Dasari, Chief Executive Officer and Managing Director, Ashok Leyland Ltd. said, "Bangladesh is an important market for Ashok Leyland. With the inauguration of this new plant, together with the robust presence of IFAD Autos, we expect to make significant inroads into this region."

With a capacity to roll out 600-800 vehicles each month, the plant is equipped with manufacturing equipment and assembly lines. It will also be facilitated with a bodybuilding and vehicle testing facility which will become functional in the next two years.

Taskeen Ahmed, managing director IFAD Autos. said, "Bangladesh is a country that is developing very quickly. In such a scenario, Ashok Leyland vehicles will prove to be a boon for the country's infrastructure. We look forward to forging a strong relationship with Ashok Leyland, as we have done in the past."

Traditionally, Bangladesh has been a good market for the Indian automobile companies. In view of the future growth potential, Society of Indian Automobile Manufacturers (SIAM) has organised the Indo-Bangla Automotive Show 2017 which is scheduled from February 2 to February 4.

At the show, Ashok Leyland has displayed a range of its products suitable for its market.

Ashok Leyland vehicles are currently available across the country.

Now, about 21 IFAD-owned area offices and their 12 dealers are spread across the country to focus on sustainable growth.
http://www.business-standard.com/ar...embling-facility-in-dhaka-117020200840_1.html

 

[Nilgiri]

I guess its a start but 600 - 800 per month is puny capacity given BD population. BD market must be more underdeveloped than I thought. What other truck/bus assembly is present in BD?...and what is the total demand for trucks/buses per annum in BD?

 

[TopCat]

I guess its a start but 600 - 800 per month is puny capacity given BD population. BD market must be more underdeveloped than I thought. What other truck/bus assembly is present in BD?...and what is the total demand for trucks/buses per annum in BD?

Ashok Leyland has a tiny market share even compared to Tata is like 5% of Tata

 

[Nilgiri]

Ashok Leyland has a tiny market share even compared to Tata is like 5% of Tata

Ok but you got any figures of total CV market size in BD...and how much local assembly/production goes on?

Obv Ashok Leyland wants to increase its market share with this move....but how much it potentially will means we need some reference figures of the market size.

 

[TopCat]

Ok but you got any figures of total CV market size in BD...and how much local assembly/production goes on?

Obv Ashok Leyland wants to increase its market share with this move....but how much it potentially will means we need some reference figures of the market size.

I know a company do Japanese Hino but I have no data regarding to that.

 

[rome333]

Hino s have been too expensive in BD as well as their spares. TATA s are loosing market share in BD to Akohk Leyland and Eicher.

 

[Nilgiri]

I know a company do Japanese Hino but I have no data regarding to that.

Total market size doesnt look so big:

https://www.brta.gov.bd/images/statistics-bd-sept-16.pdf

Truck demand per year seems to be around 6000 - 8000 and relatively consistent.

Bus demand per year seems to be picking up faster, it will be 3000+ this year looks like from half that number not so long ago.

Assuming 10,000 heavy commercial vehicle demand for 2016, 800 per year represents 8% of that by ashok leyland local assembly. Not bad at all and theres room for growth later I bet. Its good paying jobs within BD too for assembly work rather than importing fully built, and will reduce costs too I think from less tariffs.

 

[bluesky]

Market size of a developing country keeps on increasing for quite a few decades. Anything made in Japan is expensive because their quality control system is stringent and the salary is also high. So, it is possible that other non-Japanese makers will gradually build their own market even though someday Japanese parts become cheaper due to increased demand.

 

[Arthur]

Ashok Leyland has a tiny market share even compared to Tata is like 5% of Tata

Aftab Group does assemble & buits body of Hino Buses. There is few others, I don't remember them.

@Bilal9 bhai can put more light.

Hino s have been too expensive in BD as well as their spares. TATA s are loosing market share in BD to Akohk Leyland and Eicher.

To have cheap after sales service, maintenance & spares, you have to localise some of the services & spare manufacturing. The problem with Japanese companies are that despite they enjoy a very profitable market here, they aren't very interested in localising these components. Japanese enjoys kind of a monopoly in BD's automobile sector. You imagine the consequences.

 

[Bilal9]

@Bilal9 bhai can put more light.

IFAD Autos has been a long-time assembler of Ashok Leyland trucks /bus chassises as well (low end product compared to Hino). They appeal to cargo people because trucks aren't really an image product and parts are cheap and available.

However AL buses haven't really been a runaway hit.

 

[rome333]

On the longhaul Bus sector, interestingly Hino engine and chasis is still number 1 choice in BD for quality and fuel efficiency. If u want to take a bus on road it takes more than 1.5 core tk whereas if u have 5-8 lakh tk u can become a 7-9 ton truck owner with installment. I do see more Man, Volvo, Scania, Hyindai buses now a days but not Indian ones.

 

[Arthur]

Interesting aspect of Bangladesh's transport sector is
1.shorthaul/City bus services are mostly Tata/Eicher/Ashok Leyland/Chinese companies. Though it can be said confidently Tata has lost a considerable market share to Eicher. The transition is very visible to see.

2.Longhaul Bus service is dominated by Hino/Hyundai/Volvo/Scania/ MAN/Isuzu.
3. Toyota is very popular for light trucks.
4.In 3-5 ton class old Bedfords are still rulling the roads. Tata/Jac trucks enjoys good market share. Mahindra is just entering the market not very visible till now.
4. Heavy trucks from various origin.

For Ashok Leyland, only BRTC operates them in large number. In fact almost whole of the fleet is Ashok Leyland.

 

[Kandari-Hushiyaar]

Hino s have been too expensive in BD as well as their spares. TATA s are loosing market share in BD to Akohk Leyland and Eicher.

I have no idea about Vehicles, But I see a lot of this brand everywhere "Eicher"

 

[rome333]

I have no idea about Vehicles, But I see a lot of this brand everywhere "Eicher"

Runner Motors are distributing Eicher in BD. A large amount of small buses use eicher chasis mainly beacuse of cheap flexible Financing. And given the current alternatives, those are also good value for money.

 

[asad71]

For long BD military have been withstanding all pressures to allow Indian vehicles in the armed forces. Now the road is clear for Ashok Leyland.