Low quality Indian, Chinese cars occupy major stake

[CaPtAiN_pLaNeT]

Market share of reconditioned Japanese vehicles
Low quality Indian, Chinese cars occupy major stake
Published : Tuesday, 11 December 2012

Financial Express :: Financial Newspaper of Bangladesh

Badrul Ahsan
Low quality Indian and Chinese vehicles are increasingly occupying a big local market share of traditionally popular 'made in Japan' vehicles for price factor, market operators said.

According to the National Board of Revenue (NBR) data, import of Indian and Chinese vehicles has increased by around 500 and 100 per cent respectively in just three years (from 2010 to 2012).
On the other hand, reconditioned vehicles import from Japan has drastically fallen by over 80 per cent during the same period, the NBR data showed.

Md Abdul Hamid Sharif, a leading importer of Japanese reconditioned vehicles in Bangladesh said that the valuation discrimination between reconditioned and brand new cars is mostly responsible for the gloomy situation.

Besides, banks' decision not to provide more than 30 per cent financial support of the total cost of a car has also contributed to drop in sales of Japanese vehicles. Previously banks would finance up to 70 per cent of a car's total value, he added.

He also said that over 50 showrooms of reconditioned cars have been closed during the last two years and some other car outlet owners have switched over to other business like shoe, food, etc due to unfavourable business environment in the country.

"Pricing discrimination has created an uneven competition among new and reconditioned vehicle business in the country which caused a drastic fall in reconditioned car import from Japan in the recent years," Sharif also ex-president of Bangladesh Reconditioned Vehicle Importers and Dealers Association (BARVIDA) told the FE Sunday.

"The brand new cars had 15 to 20 per cent market share which has grown to 40 to 45 per cent whereas imported reconditioned cars had 90 per cent market share that has come down to less than 40 per cent in just last three years mainly due to the price manipulation."

According to BARVIDA, the government from the fiscal year 2009-10 has been collecting duties on new car import based on the price declaration by the importers but at the same time it follows book value while collecting duties of reconditioned car import which has widened price gap between new and reconditioned cars in recent times.

Abdul Mannan Chowdhury Khasru, immediate past president of BARVIDA said that as the buyers cannot manage required financial support from the banks they go to procure the low cost and low quality Indian and Chinese vehicles.

"A Japanese vehicle can be used over thirty years by changing hands but low quality Indian and Chinese vehicles cannot be used more than three to four years due to its short life span," Khasru said.

However, refuting the allegation of price manipulation and inferior quality, the local agents of Indian vehicles in Bangladesh said that better quality and design lured the buyers to choose their vehicles in recent time.

"Quality of the India made vehicles is better than anytime which helped us capturing a significant market share of the country," Abdul Matlub Ahmed, chairman of Nitol Niloy Group and sole agent of India's biggest auto brand TATA in Bangladesh told the FE.

No dealer or distributor of China made vehicles in Bangladesh wanted to comment on the issue.
The NBR data showed that new vehicles import from India and China was around 10,632 and 5179 units respectively till November of the current year (calendar year-2012) which was around 1,222 and 2,900 units two years back (in 2010).

But the import of reconditioned vehicles from Japan till December 6, 2012 was 11,836 units which were 54,341 in 2010, the NBR data revealed.

According to a market visit, this correspondent found that a reconditioned TOYOTA Corolla-6 Model car is being sold at Tk 2.2 million price of which was less than Tk 1.4 million three years back. On the other hand, similar category of a brand new car made in India and China was being sold at around Tk 1.0 million to 1.3 million.

 

[MandarK]

Low quality Indian and Chinese vehicles are increasingly occupying a big local market share of traditionally popular 'made in Japan' vehicles for price factor, market operators said.

So...Can we safely assume that BD public at large is buying low quality Indian cars??

 

[CaPtAiN_pLaNeT]

So...Can we safely assume that BD public at large is buying low quality Indian cars??

Yes due to abnormal rise of reconditioned car price thanks to the government and reduction of bank loan from 70% to 30% of the total price.

According to a market visit, this correspondent found that a reconditioned TOYOTA Corolla-6 Model car is being sold at Tk 2.2 million price of which was less than Tk 1.4 million three years back. On the other hand, similar category of a brand new car made in India and China was being sold at around Tk 1.0 million to 1.3 million.

Why it is low quality Indian cars it is also been said here...

"A Japanese vehicle can be used over thirty years by changing hands but low quality Indian and Chinese vehicles cannot be used more than three to four years due to its short life span," Khasru said.

 

[MandarK]

Yes due to abnormal rise of reconditioned car price thanks to the government and reduction of bank loan from 70% to 30% of the total price.

So finally it can be safely concluded that BD buyers have preferred low quality Indian and Chinese cars over Japanese cars.

Our old debate regarding this matter results in my victory

Why it is low quality Indian cars it is also been said here...

Common dude....who will use a car for 30 years?? Emission norms are changed after every 6-7 years.

 

[CaPtAiN_pLaNeT]

So finally it can be safely concluded that BD buyers have preferred low quality Indian and Chinese cars over Japanese cars.

Our old debate regarding this matter results in my victory





Common dude....who will use a car for 30 years?? Emission norms are changed after every 6-7 years.

Bd buyers always prefer Japanese car over low quality Indian car any day. If the price of the reconditioned car would remain 1.4 million taka that it was 3 years before people would buy only those cars. Not surprisingly even 3 years back reconditioned car market hold 90% of the market. But abnormal price rise of the reconditioned car caused many showroom to close and buyers to seek low quality Indian cars as there is no alternative.

The stat clearly speaks about it.

The NBR data showed that new vehicles import from India and China was around 10,632 and 5179 units respectively till November of the current year (calendar year-2012) which was around 1,222 and 2,900 units two years back (in 2010).

But the import of reconditioned vehicles from Japan till December 6, 2012 was 11,836 units which were 54,341 in 2010, the NBR data revealed.

No one expect a car to last for 30 years but at least 10 years or so that is your Indian car not qualified for.

 

[MandarK]

Bd buyers always prefer Japanese car over low quality Indian car any day. If the price of the reconditioned car would remain 1.4 million taka that it was 3 years before people would buy only those cars. Not surprisingly even 3 years back reconditioned car market hold 90% of the market. But abnormal price rise of the reconditioned car caused many showroom to close and buyers to seek low quality Indian cars as there is no alternative.

I am not in a mood to find the thread and repost what you have posted.

Enjoy Japanese and low quality Indian and Chinese cars

No one expect a car to last for 30 years but at least 10 years or so that is your Indian car not qualified for.

Let the buyer decide.

Peace.

 

[idune]

Awami League stooges increased tax on Japanese recondition car as much as new car so that india can dump shoddy fire hazard in Bangladesh.

 

[cloud_9]

Which are the most sold models of Indian Cars.Most of the Suzuki/Nissan products (small cars) are made in India.

 

[born]

Why it is low quality Indian cars it is also been said here...

Bd buyers always prefer Japanese car over low quality Indian car any day. If the price of the reconditioned car would remain 1.4 million taka that it was 3 years before people would buy only those cars. Not surprisingly even 3 years back reconditioned car market hold 90% of the market. But abnormal price rise of the reconditioned car caused many showroom to close and buyers to seek low quality Indian cars as there is no alternative.

The stat clearly speaks about it.

So china is using Bangladesh as their dump yard ,sad!! .

 

[IND151]

Awami League stooges increased tax on Japanese recondition car as much as new car so that india can dump shoddy fire hazard in Bangladesh.

But the Chinese Cars are also getting benefited by the move, it seems

 

[Tridibans]

Words/phrases used thus far in this thread: Awamy stooges, cheap low quality Indian cars, Indian dumping
Words/phrases still to be used: Indian dalal, RAWamy league, BSF killing innocents, BD will liberate Assam..................

 

[anilindia]

Indian and Chinese car rate is 50 % of japanese. India china is dumping low cost waste car there because BD want them. Hence they are occupying major stake.

 

[Shardul.....the lion]

The cheapest Indian car in market Maruti 800 is used by people for last 15-20 yrs in small towns and rural areas. That shows cheap does no mean bad.

 

[Ganges Zephyr]

In another thread, BD members were jumping up and down denouncing sales of Indian vehicles in BD, calling TATA FATA cheap and all that nonsense.
TATA FATA ghus gaya inke pichwade. LOL

 

[Luffy 500]

This is what I was saying in the Indo-SL thread yesterday. Indian junk companies are getting favorable treatment by this dalal fagotic scum gov to market their low quality junk. But still U guys are failing to compete.

I wonder who buys these cars. I have hardly seen any Indian cars except for few maruti swifts among sea toyota vehicles in everyday traffic.