Thats the whole point of the argument! 100 Boleros were sold with a price tag of USD 60,000! Imagine if Mahindra sets up a plant in Bangladesh how cheap it would be? It sells for 5-7 Lacs INR in India.(Thats about 20,000USD). You could buy 5 Boleros for the price of one Land Cruiser.
And about Maruti 800, yes its a shitbox, no doubt. But its from the license raj era. Ever since the Indian market opened up, Maruti-Suzuki had to lift their game up. I don't think they are even making Maruti 800's anymore. On the other hand they are exporting Maruti made Suzuki A-Stars and Altos and all sorts of small cars to Australian, European, South East Asian and South American markets. If these cars are good enough for Europe, someone saying that they aren't good enough for Bangladesh is just laughable.
Suzuki 2009 Alto - Suzuki wishing on A-Star | GoAuto
It is a positive initiative. Mitsubishi has set up an assembly plant in Bangladesh. They assemble the Pajero and some sedans and plan to produce more models. BUT, there are strings attached to it. The components needed to assemble the product are 100% imported. None of them are of Bangladeshi origin. These components are also taxed. So the selling price of the product becomes the same as an imported one. So it is fair to say that the tax structure in not favorable at the moment.
The amount of investment needed for Bangladesh to produce the engineering components (needed to produce a basic car) on its own are massive. Statistically, very few Bangladeshis actually own a car, so it is a small market at best. Top management would not want unfavorable returns on investment. It is just not a feasible initiative at the moment. So, I don't think many companies would even budge on this matter, especially in today's competitive environment.
And honestly, I really doubt if the Government of Bangladesh would compromise the existing tax structure. Especially duties on cars.
What Indian companies can do is to penetrate the rural market. Much of Bangladesh's population are employed in the agriculture sector. Mahindra tractors in Bangladeshi farms are quite common sight.
Mahindra Tractors - Bangladesh
Indian trucks are quite popular too.
It is a very attractive market and with a bright future. The Japanese are ignoring this segment.
About Boleros - it is not just about being cheaper than Land Cruisers. It is about brand image and perception. I think it is more about marketing and branding. The Pajero along with the Corolla is a very iconic vehicle, and been that way for nearly three decades. It has a strong presence in the minds of Bangladeshis.
There is a Mahindra dealer in Bangladesh. However, I haven't come across a single billboard advertisement for the Bolero. Ford is a relatively new entry into the Bangladeshi market. There were many billboard advertisements about the Ford Ranger (imported from India), and people bought it. Although, sales of the Ranger are not anywhere near the Japanese ones.
So as you can see, it is not an easy market!
... BDs should revolt against such cars... declare holy war against these cars... I won't have a tiny bit of suspicion in my mind when another nano catches fire.
