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NIKKEI ASIA: Mitsubishi Motors to build new plant in Bangladesh

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Source: Mitsubishi Motors to build new plant in Bangladesh - Nikkei Asia
Japanese automaker looks to expand footprint as country's economy grows
https%253A%252F%252Fs3-ap-northeast-1.amazonaws.com%252Fpsh-ex-ftnikkei-3937bb4%252Fimages%252F2%252F3%252F3%252F7%252F36217332-1-eng-GB%252Fphoto_SXM2021090200006168.png

Mitsubishi Motors is thought to hold the largest share of new cars sold in Bangladesh. (Screen grab from the company's homepage)
RYOTARO YAMADA, Nikkei staff writerSeptember 2, 2021 18:59 JST
TOKYO -- Mitsubishi Motors is set to build an auto assembly plant in Bangladesh as part of its expansion in Southeast Asia.
Mitsubishi and state-owned Bangladesh Steel and Engineering Corporation (BSEC) on Thursday signed a memorandum of understanding. The two parties will conduct a feasibility study on business opportunities to determine when to build the plant. The study will be completed by 2025.
The new plant will cater to growing auto demand in Bangladesh by expanding knockdown production. The plant's capacity, the amount of the investment and which models will be made there will be determined based on the Bangladeshi government’s support and incentives.

Since 1977, Mitsubishi has outsourced auto production in the Southeast Asian country to Pragoti Industries, a Bangladeshi auto assembly and parts manufacturer whose parent company is BSEC. Pragoti Industries is currently building the Pajero Sport, a sport utility vehicle, and other models, but Mitsubishi currently has no plants in Bangladesh in which it holds an ownership stake.
In fiscal 2020, Mitsubishi sold 1,700 vehicles and produced 200 cars in the country. There is currently limited demand for new cars in Bangladesh, where most people buy second hand. But it is said that Mitsubishi holds the biggest share of new car sales in the country.
The Japanese carmaker is looking to expand its footprint in Bangladesh, as it expects the market to grow along with the economy. Mitsubishi plans to market products developed for Southeast Asia to increase its sales in fast-growing parts of the world such as South Asia, Mexico, and Africa. At present, the company has production bases in five countries in the Association of Southeast Asian Nations, including Thailand and Indonesia.


https://twitter.com/x/status/1433359204958433282
 
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F-6 enthusiast said:
Source: Mitsubishi Motors to build new plant in Bangladesh - Nikkei Asia
Japanese automaker looks to expand footprint as country's economy grows
https%253A%252F%252Fs3-ap-northeast-1.amazonaws.com%252Fpsh-ex-ftnikkei-3937bb4%252Fimages%252F2%252F3%252F3%252F7%252F36217332-1-eng-GB%252Fphoto_SXM2021090200006168.png

Mitsubishi Motors is thought to hold the largest share of new cars sold in Bangladesh. (Screen grab from the company's homepage)
RYOTARO YAMADA, Nikkei staff writerSeptember 2, 2021 18:59 JST
TOKYO -- Mitsubishi Motors is set to build an auto assembly plant in Bangladesh as part of its expansion in Southeast Asia.
Mitsubishi and state-owned Bangladesh Steel and Engineering Corporation (BSEC) on Thursday signed a memorandum of understanding. The two parties will conduct a feasibility study on business opportunities to determine when to build the plant. The study will be completed by 2025.
The new plant will cater to growing auto demand in Bangladesh by expanding knockdown production. The plant's capacity, the amount of the investment and which models will be made there will be determined based on the Bangladeshi government’s support and incentives.

Since 1977, Mitsubishi has outsourced auto production in the Southeast Asian country to Pragoti Industries, a Bangladeshi auto assembly and parts manufacturer whose parent company is BSEC. Pragoti Industries is currently building the Pajero Sport, a sport utility vehicle, and other models, but Mitsubishi currently has no plants in Bangladesh in which it holds an ownership stake.
In fiscal 2020, Mitsubishi sold 1,700 vehicles and produced 200 cars in the country. There is currently limited demand for new cars in Bangladesh, where most people buy second hand. But it is said that Mitsubishi holds the biggest share of new car sales in the country.
The Japanese carmaker is looking to expand its footprint in Bangladesh, as it expects the market to grow along with the economy. Mitsubishi plans to market products developed for Southeast Asia to increase its sales in fast-growing parts of the world such as South Asia, Mexico, and Africa. At present, the company has production bases in five countries in the Association of Southeast Asian Nations, including Thailand and Indonesia.


https://twitter.com/x/status/1433359204958433282
Click to expand...

Well Mitsubishi, though the sixth-largest Japanese automaker - is in some financial straits and thus are eager to develop Bangladesh market for labor cost advantage in exports to help their bottom line as well as supply our local market. In Japan home market, they are part of the Renault-Nissan-Mitsubishi auto manufacturing partnership, where they collaborate on design, R&D, prototypes and powertrain development/usage. Mitsubishi models initially were the inspiration behind Proton Malaysia BHD models, which are also assembled in Bangladesh by PHP. Some Proton vehicles still use Mitsubishi parts and design.

I am sure this is another great milestone on our auto assembly history, as Mitsubishi vehicle (especially Pajero and pickups) assembly in Bangladesh goes back to the birth of Bangladesh as a country. But I hope this time the collaboration would go beyond simple CKD/SKD assembly.

Of course, this needs policy support. What the govt. did in terms of tariff support for cellphones can be repeated here is well, gradually increasing tariff on fully assembled vehicles and decreasing tariff on automobile parts.

The big neighbor will try to influence these policies because the rise of Bangladeshi industry will mean a loss of theirs, as amply demonstrated in the case of apparel and textiles. Also, they will impose dumping tariffs on our auto exports to their market as usual. Neighbor loves to profit off of others, but when it comes to returning any favors, there are big issues.

@bluesky bhai, what is the impression of Mitsubishi in the Japanese home market, I understand they develop some Kei Cars for other larger brands such as Toyota or Honda?

Mitsubishi's worldwide production network:
 
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Bilal9 said:
Well Mitsubishi, though the sixth-largest Japanese automaker - is in some financial straits and thus are eager to develop Bangladesh market for labor cost advantage in exports to help their bottom line as well as supply our local market. In Japan home market, they are part of the Renault-Nissan-Mitsubishi auto manufacturing partnership, where they collaborate on design, R&D, prototypes and powertrain development/usage. Mitsubishi models initially were the inspiration behind Proton Malaysia BHD models, which are also assembled in Bangladesh by PHP. Some Proton vehicles still use Mitsubishi parts and design.

I am sure this a great milestone, as Mitsubishi vehicle (especially Pajero and pickups) assembly in Bangladesh goes back to the birth of Bangladesh as a country. But I hope this time the collaboration would go beyond simple CKD/SKD assembly.

@bluesky bhai, what is the impression of Mitsubishi in the Japanese home market, I understand they develop some Kei Cars for other larger brands such as Toyota or Honda?

Mitsubishi's worldwide production network:
Click to expand...
Agreed. The important part is that we are developing the industrial and technological base in addition to a skilled workforce. Hopefully it will attract other companies too.
 
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Bilal9 said:
Well Mitsubishi, though the sixth-largest Japanese automaker - is in some financial straits and thus are eager to develop Bangladesh market for labor cost advantage in exports to help their bottom line as well as supply our local market. In Japan home market, they are part of the Renault-Nissan-Mitsubishi auto manufacturing partnership, where they collaborate on design, R&D, prototypes and powertrain development/usage. Mitsubishi models initially were the inspiration behind Proton Malaysia BHD models, which are also assembled in Bangladesh by PHP. Some Proton vehicles still use Mitsubishi parts and design.

I am sure this is another great milestone on our auto assembly history, as Mitsubishi vehicle (especially Pajero and pickups) assembly in Bangladesh goes back to the birth of Bangladesh as a country. But I hope this time the collaboration would go beyond simple CKD/SKD assembly.

Of course, this needs policy support. What the govt. did in terms of tariff support for cellphones can be repeated here is well, gradually increasing tariff on fully assembled vehicles and decreasing tariff on automobile parts.

The big neighbor will try to influence these policies because the rise of Bangladeshi industry will mean a loss of theirs, as amply demonstrated in the case of apparel and textiles. Also, they will impose dumping tariffs on our auto exports to their market as usual. Neighbor loves to profit off of others, but when it comes to returning any favors, there are big issues.

@bluesky bhai, what is the impression of Mitsubishi in the Japanese home market, I understand they develop some Kei Cars for other larger brands such as Toyota or Honda?

Mitsubishi's worldwide production network:
Click to expand...
The Japanese would fondly say about 50% of the Japanese economy is controlled by the Mitsubishi group of companies. In fact, Mitsubishi, Mitsui, and Sumitomo are the three business groups that control many of the businesses in Japan. Below is the list of many of the Mitsubishi companies.

People here say Mitsubishi produces from Pins to (air)Planes. However, its luck with quality cars goes ups and downs. It has many famous brands, such as Pajero. But, something happens to them after a few years of use and Mitsubishi has to call the cars back and repair them.

Whatever it may be, still Mitsubishi is a Japanese company. So, the average quality is higher than cars produced in other countries. However, that not so many Mitsubishi cars as Toyota are seen on Tokyo roads.

Companies in Japan have to follow the directives of METI (Ministry of Trade and Industry) in Japan. With trillions of dollars worth of investment money at its disposal, Mitsubishi is certainly capable to produce very high grade cars domestically, but it does not. It is probably because METI does not want Toyota or Honda to be swallowed by Mitsubishi vehicles. So, Mitsubishi keeps itself at the top in the production of heavy machines and industrial appliances and keeps low in car production. As such, it goes abroad to produce locally.

There are millions of Mitsubishi cars, utility vehicles, buses, and trucks on the Japanese streets.

My personal opinion is BD needs M/Bishi technology to produce more utility vehicles, buses, and trucks which has a ready market and less on private cars. I think M/Bishi production in BD will remain limited to only assembling of vehicles in its plants and all important components exported from Japan or other countries where M/Bishi already has production facilities.

Core members[edit]
Three of the group companies are informally known as the "Three Great Houses" (御三家, Gosanke) and hold a separate coordinating meeting prior to each Friday Conference:[21]

Ten other "major" group companies participate in the coordinating meeting on a rotating basis (with six of the ten companies participating in any given month):[21]

Other members[edit]
Related organizations[edit]
 
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bluesky said:
The Japanese would fondly say about 50% of the Japanese economy is controlled by the Mitsubishi group of companies. In fact, Mitsubishi, Mitsui, and Sumitomo are the three business groups that control many of the businesses in Japan. Below is the list of many of the Mitsubishi companies.

People here say Mitsubishi produces from Pins to (air)Planes. However, its luck with quality cars goes ups and downs. It has many famous brands, such as Pajero. But, something happens to them after a few years of use and Mitsubishi has to call the cars back and repair them.

Whatever it may be, still Mitsubishi is a Japanese company. So, the average quality is higher than cars produced in other countries. However, that many Mitsubishi cars are not seen on Tokyo roads.

Companies in Japan have to follow the directives of METI (Ministry of Trade and Industry) in Japan. With so much investment money in its hands, Mitsubishi is capable to produce very high grade cars domestically, but it does not. It is probably because METI does not want Toyota or Honda to be swallowed by Mitsubishi vehicles. So, Mitsubishi keeps itself at the top in the production of other heavy machines and appliance and keep low in car production. As such, it goes abroad to produce locally.

There are millions of Mitsubishi cars, utility vehicles, buses, and trucks on the Japanese streets.

My personal opinion is BD needs M/Bishi technology to produce utility vehicles, buses, and trucks. I think M/Bishi production will remain limited to only assembling of vehicles in its plant in BD and all important components exported from Japan or other countries where M/Bishi already has production plants.

Core members[edit]
Three of the group companies are informally known as the "Three Great Houses" (御三家, Gosanke) and hold a separate coordinating meeting prior to each Friday Conference:[21]

Ten other "major" group companies participate in the coordinating meeting on a rotating basis (with six of the ten companies participating in any given month):[21]

Other members[edit]
Related organizations[edit]
Click to expand...

Excellent Post @bluesky bhai. :-)

The other company that can really help nation building in Bangladesh is their FUSO truck group which is I believe owned by Daimler group now. Other than HINO and ISUZU, FUSO trucks/buses (and construction equipment) are the most common Japanese trucks/chassis found on Bangladesh roads.

FUSO is represented in Bangladesh and is assembled by Rancon group.

140610a.jpg
 
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Bilal9 said:
Well Mitsubishi, though the sixth-largest Japanese automaker - is in some financial straits and thus are eager to develop Bangladesh market for labor cost advantage in exports to help their bottom line as well as supply our local market.
Click to expand...
Bold part: Motor vehicles are expensive and only rich people can afford them. The buyers are conscious of the quality of their vehicles and they certainly care for the name value of the producer as well as producing country.

So, we should not expect Mitsubishi vehicles made in BD will have any market abroad. BD is not a part of ASEAN that our vehicles would have free access to this market. On the other hand, our great neighbor India will shun our products as if they spew poison.

In order to develop, other than big FUSO trucks and buses, BD needs thousands of utility vehicles with 660cc, 1000cc, or 1300cc engines because these are fit for delivering/ supplying goods by the vendors/ suppliers to almost any location in a City/ Township by plying through the narrow lanes. Now, our people use Thyala Gari because trucks cannot enter.

Once available at a comparatively cheaper price and if supported with Bank loans payable in monthly installments, the same Thyala Gari groups will use motorized small utility vehicles. The Bank loan system should be supported by the govt institutions which may be difficult for BD that has no administrative discipline. Anyway, govt has to implement many measures to widen the market.
 
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This is probably aimed at the domestic market. They have conducted feasibility studies. I would guess export oriented factories would be setup in Mirsarai EZ With Japanese Korean auto manufacturers being given an entire section to themselves.

What say you @Bilal9 ?
 
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bluesky said:
Bold part: Motor vehicles are expensive and only rich people can afford them. The buyers are conscious of the quality of their vehicles and they certainly care for the name value of the producer as well as producing country.

So, we should not expect Mitsubishi vehicles made in BD will have any market abroad. BD is not a part of ASEAN that our vehicles would have free access to this market. On the other hand, our great neighbor India will shun our products as if they spew poison.

In order to develop, other than big FUSO trucks and buses, BD needs thousands of utility vehicles with 660cc or 1000cc engines because these are fit for delivering/ supplying goods by the vendors/ suppliers to almost any location in a City/ Township plying through the narrow lanes. Now, our people use Thayla Gari because trucks cannot enter.

Once available at a comparatively cheaper price and if supported with Bank loans payable in monthly installments, the same Thayla Gari groups will use motorized small utility vehicles. The Bank loan system should be supported by the govt institutions which may be difficult for BD that has no administrative discipline. Anyway, govt has to implement many measures to widen the market.
Click to expand...

@bluesky bhai, Thayla Gari or Rickshaw vans are rather rare to see in Dhaka anymore. They are also banned from the major roads because they slow down traffic.

In their place, some cheap disposable Indian four wheeler or three wheeler mini trucks have come into use (Kei class mini trucks). I believe some local assemblers have already started assembling these three wheeler mini trucks, even electric ones. Even some rickshaws in Bangladesh are motor driven nowadays I believe.

Suzuki Super Carry is the definitive Mini Truck in Bangladesh, available for the last twenty/thirty years, unchanged.
suzuki-super-carry-img1.jpg


Mitsubishi Minicab is a 660 cc 3 cylinder truck, also well loved in Bangladesh for carrying small loads and work-crews.
Mitsubishi_Minicab_2000.jpg


Nitol motors assembles the Tata ACE
iu


Akij motors has a variety of mini trucks locally assembled (775 KG GVW and up), SKD kit origin may be Chinese or Indian? Not sure.
durjoy-775kg-diesel-minitruck-cover.jpg

durbar-775kg-diesel-minitruck-cover.jpg

ponkhiraj-1ton-diesel-minitruck-cover.jpg


Akij also assembles much larger trucks on batch basis, this 45 ton three axle truck maybe the largest truck assembled locally so far.
cargo-truck-6x4-bahadur.jpg
 
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F-6 enthusiast said:
This is probably aimed at the domestic market. They have conducted feasibility studies. I would guess export oriented factories would be setup in Mirsarai EZ With Japanese Korean auto manufacturers being given an entire section to themselves.

What say you @Bilal9 ?
Click to expand...

Press release says they have a JV with the Steel and Engg. Corporation which is a govt. organization, the same one Honda had a JV with for Motorbike manufacture. I am sure Mitsubishi is just testing the waters. I say any JV, however lame is still good. Remember how humble the beginnings of our apparel industry was in the late 70's, when Taiwan and Korea were juggernauts in it? Eventually the same thing will happen to higher priced countries, cost of labor will creep up and there will be no alternative other than Bangladesh, even for vehicle assembly.

It takes 20 man-hours for a complete small car/mini-truck to be assembled. maybe less for simpler two door vehicles. See page 3 in the PDF below.

The point is that labor input (notwithstanding the function of robotic automation) is not insignificant when it comes to auto assembly. If Thailand, Indonesia and India are so successful in it there is no question that Bangladesh can be too, it just depends on the right tariff and policy support from Bangladesh govt.

The only issue is - Bangladesh govt. lets Indian politicians, their agents and influencers dictate our tariff and trade policies (to make Bangladesh a convenient market for Indian products and industry), which is not serving the interests of our factory labor class and industrialists. But I am confident changes will come soon and some are already happening.

Bangladeshi products exported even to India are cheaper, better quality and present a new affordability and value proposition to Indian consumers, which dhokeybaaj Indian Banyas and their pet dog Sanghis in their govt. are trying to resist. The latter are spoiled and have been skinning the Indian consumer in license raj style for too long and they don't want to let go of the status quo.
 
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Bilal9 said:
@bluesky bhai, Thayla Gari or Rickshaw vans are rather rare to see in Dhaka anymore. They are also banned from the major roads because they slow down traffic.

In their place, some cheap disposable Indian four wheeler or three wheeler mini trucks have come into use (Kei class mini trucks). I believe some local assemblers have already started assembling these three wheeler mini trucks, even electric ones. Even some rickshaws in Bangladesh are motor driven nowadays I believe.

Nitol motors assembles the Tata ACE
iu


Akij motors has a variety of mini trucks locally assembled (775 KG GVW and up), SKD kit origin may be Chinese or Indian? Not sure.
durjoy-775kg-diesel-minitruck-cover.jpg

durbar-775kg-diesel-minitruck-cover.jpg

ponkhiraj-1ton-diesel-minitruck-cover.jpg


Akij also assembles much larger trucks on batch basis, this 45 ton three axle truck maybe the largest truck assembled locally so far.
cargo-truck-6x4-bahadur.jpg
Click to expand...
Thanks. So, people are already doing what I have stated. Mitsubishi will certainly contribute more to the present production of utility vehicles. The demands are huge in a country of 165 million.

It is not that a vehicle can be used much more than 100,000 km, roughly speaking. So, the demand will only rise for the next 50 years. Japanese motorized vehicles are more reliable than other sources.

Other than smaller pickups, there are also Mitsubishi Canter 2-ton trucks, SUV Outlander, ROSA 28-seater buses, Pajero Jeep, 8/ 9 seater DELICA and many others that can have a good market.

I believe, the luxurious Delica with 8/ 9 seats will get a tremendous market while Rosa can be used to transport office or factory workers in the mornings and evenings. Once the mode of transportation changes, people's living standards will improve.
 
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Mitsubishi group be it electronics arm or auto arm both are rotted to the core.they are not struggling for financing but utter incompetence and corruption.no wonder no one here in japan buying their bullshit car’s anymore.
 
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bluesky said:
Thanks. So, people are already doing what I have stated. Mitsubishi will certainly contribute more to the present production of utility vehicles. The demands are huge in a country of 165 million.

It is not that a vehicle can be used much more than 100,000 km, roughly speaking. So, the demand will only rise for the next 50 years. Japanese motorized vehicles are more reliable than other sources.

Other than smaller pickups, there are also Mitsubishi Canter 2-ton trucks, SUV Outlander, ROSA 28-seater buses, Pajero Jeep, 8/ 9 seater DELICA and many others that can have a good market.

I believe, the luxurious Delica with 8/ 9 seats will get a tremendous market while Rosa can be used to transport office or factory workers in the mornings and evenings. Once the mode of transportation changes, people's living standards will improve.
Click to expand...

https://editorstime.com/rancon-brings-fuso-buses-trucks-for-ctg-market
 
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bluesky said:
I believe, the luxurious Delica with 8/ 9 seats will get a tremendous market while Rosa can be used to transport office or factory workers in the mornings and evenings. Once the mode of transportation changes, people's living standards will improve.
Click to expand...
what about hatch-backs ? haven't seen that many hatch-backs in BD. Enough room for 5 ppl and small in size and economical (with a small engine)
bluesky said:
It is not that a vehicle can be used much more than 100,000 km, roughly speaking. So, the demand will only rise for the next 50 years. Japanese motorized vehicles are more reliable than other sources.
Click to expand...
Not only that, but spare parts for Japanese automobiles are readily available in BD.
 
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F-6 enthusiast said:
what about hatch-backs ? haven't seen that many hatch-backs in BD. Enough room for 5 ppl and small in size and economical (with a small engine)
Click to expand...

Bangladeshi folks generally are not fond of hatchbacks, especially small 800 cc Kei car type hatchbacks. These are dangerous in accidents, zero body integrity.

You can get JDM spec Mitsubishi Mirage Hatchback in Dhaka for 13 lakh, maybe a bit less, which has a 1.2-liter Inline-3 engine. Thanks to Bangladesh govt. 300% tax.

Would have been around 2.5 or 3 lakhs if there was no tariff.

Mitsubishi Mirage ES 2022 Price In Bangladesh , Features And Specs - Ccarprice BDT

Latest Mitsubishi Mirage ES 2022 price in Bangladesh 2020 and detail specs, Get Market Rate of Mitsubishi Mirage ES 2022 online before buying Mitsubishi Mirage ES 2022 in bd
www.ccarprice.com www.ccarprice.com

Proton cars are assembled in Chittagong by PHP group, You can get small models like this Persona for close to 10 lakh. Better looks than a hatchback.
191382171_2934005976837224_3958188146862419725_n.jpg
 
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