Indian Companies to Invest in Auto Sector in Bangladesh

[Zabaniyah]

So according to you, both pre-owned and new Corollas cost the same due to the tax structure? Sounds a bit confusing though.



That is interesting. What kind of salaries would these "middle income group" professionals be earning? That will help to get an idea of the purchasing power.

Brand new cars in showrooms cost even more. A brand new Civic imported from India for example will cost at least Tk. 3,000,000.

 

[Roybot]

That is interesting. What kind of salaries would these "middle income group" professionals be earning? That will help to get an idea of the purchasing power.

Bangladesh's annual car sale is about 30,000. Out of which 85% cars are second hand/reconditioned car. Cheaper cars is what they need. But Bangladesh has a 200% tax on import of new cars. So only companies which can produce cheap cars and are willing to start a plant in Bangladesh can tap into the non existent cheaper car market. Its a gamble which not many companies are willing to take. Indian companies are, cause worse comes worst and they can't sell their cars in Bangladesh, they can always ship it to neighboring countries like Burma, Nepal and to its own North East.
Bangladesh gets investment, more jobs for its people and cheaper cars if they like to buy.

 

[desioptimist]

Bangladesh's annual car sale is about 30,000. Out of which 85% cars are second hand/reconditioned car. Cheaper cars is what they need. But Bangladesh has a 200% tax on import of new cars. So only companies which can produce cheap cars and are willing to start a plant in Bangladesh can tap into the non existent cheaper car market. Its a gamble which not many companies are willing to take. Indian companies are, cause worse comes worst and they can't sell their cars in Bangladesh, they can always ship it to neighboring countries like Burma, Nepal and to its own North East.
Bangladesh gets investment, more jobs for its people and cheaper cars if they like to buy.

85 percent second hand cars? How would a local company compete with that. They need to put some duty on second hand cars too.

 

[Skull and Bones]

85 percent second hand cars? How would a local company compete with that. They need to put some duty on second hand cars too.

I don't think they have any local indigenous car companies in Bangladesh.

 

[Roybot]

85 percent second hand cars? How would a local company compete with that. They need to put some duty on second hand cars too.

They do have taxes on second hand cars too.

20 per cent SD (Supplementary Duty) on vehicles of up to 1500cc
60 per cent SD on vehicles between 1,501 and 2,350cc
100 per cent SD on vehicles between 2,351cc and 3,500cc.

Import tax on new cars are way too high, so it can't compete with the second hand cars. I was reading somewhere that Mahindra sold about 100 odd Boleros in Bangladesh at a price of about $60,000 each. When they sell in India for about 5-7 Lacs, which is like 15,000 USD. All that money for just driving across from India into Bangladesh.

They have these tax in place to compel companies to set up plants in Bangladesh. I think India had similar high import tax in place.

 

[Gentle Typhoon]

Bangladesh also has restriction on 2 wheelers, no motorcycle/scooter above 150cc is legally allowed, IMO they should increase it to 250cc atleast.

 

[Skull and Bones]

I think India had similar high import tax in place.

Yes, it's around 118% for new cars. And maybe around 40% for old cars. (which is equal to more that 5 years old.)

 

[Skull and Bones]

Bangladesh also has restriction on 2 wheelers, no motorcycle/scooter above 150cc is legally allowed, IMO they should increase it to 250cc atleast.

Lol, no sports bike allowed above 600cc ?

 

[integra]

Lol, no sports bike allowed above 600cc ?

That law was placed 7-8 years ago to counter hijackers and terrorists. Though its sad
and because of that Japanese lost the market due to cheaper Indian bikes.

 

[desioptimist]

Yes, it's around 118% for new cars. And maybe around 40% for old cars. (which is equal to more that 5 years old.)

Are usedcars allowed into India. I have never seen an imported used car. Can you verify?

 

[Skull and Bones]

That law was placed 7-8 years ago to counter hijackers and terrorists. Though its sad
and because of that Japanese lost the market due to cheaper Indian bikes.

What that law has to do with hijackers and terrorists?

 

[kingkobra]

Are usedcars allowed into India. I have never seen an imported used car. Can you verify?

i have seen many japnese tourists that come to India buy cars just for traveling around and then they sell them for very low price while going back..

 

[Skull and Bones]

Are usedcars allowed into India. I have never seen an imported used car. Can you verify?

Yes, if you are lucky then you can have a Ferrari F430 within 50-60 lakhs, but the documentation process is long and tedious.

I tried to import an used Ducati 848 through the same process, but you have to show its ownership certificate in US, which i don't have.

 

[integra]

What that law has to do with hijackers and terrorists?

Dhakayates have a problem with over spending and selliing it off. Hijackers mostly
rides in motorbikes so the restriction for fast ones.

 

[Md Akmal]

We the Bengalees are not all interested in Indian made cars. It is far far below the standard.