Nitol looking to assemble Tata Nano locally

[TopCat]

Mehdi Musharraf Bhuiyan

Bangladesh could be the next assembling home of the world's cheapest car Tata Nano, if a negotiation among the government, the car's Indian manufacturer and their local representative sees the daylight.

Nitol, the local sales agent of Nano's giant parent concern Tata Motors, said Sunday that the company was aiming to assemble the jelly bean-shaped car from its own premises after its grand unveiling in Bangladesh at the recently-concluded India Trade Fair.

"The move is aimed at keeping the prices of the acclaimed tiny car at its expected level as maintaining that highly anticipated low price appears hardly feasible in Bangladesh after counting the high import duties and other expenses", a high official of Nitol Motors told the FE recently.

"Currently, we are waiting for the final go-ahead from the government for setting up our own assembling plant on the outskirts of Dhaka and if everything goes well, we would be able to market the home-made Tata Nano by the end of this year", he added.

Amid much media frenzy, Tata Nano was launched in March last year at the Pragati Maidan of New Delhi, the capital of India, with a starting price of Rs 100,000 equivalent to US$2,160, placing it in the Guinness Book of Records as the cheapest car in the world to date.

The news provides a ray of hope for a section of Bangladesh's rising middle class people, for whom the luxury of owning a personal car still remains a distant dream.

However, much of this initial frenzy was about to die down, when the Nitol officials informed the prospective customers that they might not be able to sell the Tata Nano LX on display at the India Trade Fair at a price lower than Tk. 600 thousand in the local market after taking into account the high import taxes and the minimum profit margin.

"But if we can assemble the same car locally at our own plant, the price could come down to around Tk. 300 to 350 thousand, which can make it the cheapest car available in the Bangladeshi market by far", Tata Nitol's General Manager for International Trade Division Ayatollah said

Nitol officials pointed out that the car could possibly be a good bargain to the young jobholders and professionals, university students and even the female homemakers.

From its existing automobile plant in Jessore, Nitol is already assembling a number of other types of Tata commercial vehicles including trucks for the local market.

"We are yet to do a market feasibility study on the demand for such vehicles in Bangladesh; however if we find that there is a potential demand of 1000 units per year for this car in the local market, for instance, we may opt for locally assembling this vehicle", Ayatollah said.

Industry insiders observe that the car could be a potential competitor to its Indian counterpart Maruti Suzuki and other low-budget automobile varieties available in the market, but they also expressed skepticism about the potential durability of such low-cost four-wheelers.

"Despite availability of cheaper options in the local market, rather pricey Toyota is the most sought-after brand in Bangladesh", said an industry insider. "So it's very unlikely that the customers here would risk quality for cheaper prices while buying their dream car

Nitol looking to assemble Tata Nano locally

 

[eastwatch]

Mehdi Musharraf Bhuiyan

Bangladesh could be the next assembling home of the world's cheapest car Tata Nano, if a negotiation among the government, the car's Indian manufacturer and their local representative sees the daylight.

Nitol, the local sales agent of Nano's giant parent concern Tata Motors, said Sunday that the company was aiming to assemble the jelly bean-shaped car from its own premises after its grand unveiling in Bangladesh at the recently-concluded India Trade Fair.

"The move is aimed at keeping the prices of the acclaimed tiny car at its expected level as maintaining that highly anticipated low price appears hardly feasible in Bangladesh after counting the high import duties and other expenses", a high official of Nitol Motors told the FE recently.

"Currently, we are waiting for the final go-ahead from the government for setting up our own assembling plant on the outskirts of Dhaka and if everything goes well, we would be able to market the home-made Tata Nano by the end of this year", he added.

Amid much media frenzy, Tata Nano was launched in March last year at the Pragati Maidan of New Delhi, the capital of India, with a starting price of Rs 100,000 equivalent to US$2,160, placing it in the Guinness Book of Records as the cheapest car in the world to date.

The news provides a ray of hope for a section of Bangladesh's rising middle class people, for whom the luxury of owning a personal car still remains a distant dream.

However, much of this initial frenzy was about to die down, when the Nitol officials informed the prospective customers that they might not be able to sell the Tata Nano LX on display at the India Trade Fair at a price lower than Tk. 600 thousand in the local market after taking into account the high import taxes and the minimum profit margin.

"But if we can assemble the same car locally at our own plant, the price could come down to around Tk. 300 to 350 thousand, which can make it the cheapest car available in the Bangladeshi market by far", Tata Nitol's General Manager for International Trade Division Ayatollah said

Nitol officials pointed out that the car could possibly be a good bargain to the young jobholders and professionals, university students and even the female homemakers.

From its existing automobile plant in Jessore, Nitol is already assembling a number of other types of Tata commercial vehicles including trucks for the local market.

"We are yet to do a market feasibility study on the demand for such vehicles in Bangladesh; however if we find that there is a potential demand of 1000 units per year for this car in the local market, for instance, we may opt for locally assembling this vehicle", Ayatollah said.

Industry insiders observe that the car could be a potential competitor to its Indian counterpart Maruti Suzuki and other low-budget automobile varieties available in the market, but they also expressed skepticism about the potential durability of such low-cost four-wheelers.

"Despite availability of cheaper options in the local market, rather pricey Toyota is the most sought-after brand in Bangladesh", said an industry insider. "So it's very unlikely that the customers here would risk quality for cheaper prices while buying their dream car

Nitol looking to assemble Tata Nano locally

This so-called industry insider fellow is unnecessarily talking about the Toyota influnce in BD market. A market for a particular good is not something permanent. When varities of substitute goods are available in front of the customers, they can make their own choice, whether to buy a Toyota or to buy a made-in-BD nano.

People have different tastes and different demands. Some have thin purse, yet some have fatter ones. So, better we encourage nitol to build a car assembling plant in BD.

This is always the base point that can be expanded to the manufacturing of car body and body parts.　Next phase can be the assembling of engines. Further expansion can be made in making the mechanical, electrical and electronics parts.

Unless one or two companies come forward with a car assembling plant as nitol is considering, an expansion cannot be made to manufacture the other backward linkage products.

 

[jarnee]

better to assemble in BD. Rather then import from India.
1. Gives jobs to locals
2. To assemble a Car, you need otehr vendors also around , so develops spare parts market, from Rubber gasket to Windscreen , viper and other stuff.
3. Costs can be low and profit margin higher.

 

[Skies]

People have different tastes and different demands. Some have thin purse, yet some have fatter ones. So, better we encourage nitol to build a car assembling plant in BD.

Sad, I'm a loser and my BD is a loser too. AL said they will boost BD's economy. So I thought, happily, AL will promote to build some quality motor industry indigenously. But now it seems that we have to set up TATA's nano-car Assembly industry to boost our economy instead of building some quality motor industry indigenously! I don't appreciate this kind of economical improvements. I'm sure this car will not run after 2 years but by the mean time TATA will income some extra money. This is so-called AL's economical achievements where BD will not build anything by itself but only import from India like electricity. And AL will say, lo! we have gave u car, job, and opportunity.

Really, I would like to say it dependency instead of achievement and opportunity.

 

[kumar_V1.0]

Sad, I'm a loser and my BD is a loser too. AL said they will boost BD's economy. So I thought, happily, AL will promote to build some quality motor industry indigenously. But now it seems that we have to set up TATA's nano-car Assembly industry to boost our economy instead of building some quality motor industry indigenously! I don't appreciate this kind of economical improvements. I'm sure this car will not run after 2 years but by the mean time TATA will income some extra money. This is so-called AL's economical achievements where BD will not build anything by itself but only import from India. And AL will say, lo! we have gave u car, job, and opportunity.

Really, I would like to say it dependency instead of achievement and opportunity.

You want to build Rome in a day. Criticism for sake of it. Suzuki cars were assembled in india By maruti-Suzuki still the research was with Suzuki. In the mean time ancilliary parts industry developed also giving other auto companies the confident.Now Maruti is doing designing and research in India itself.

Now exports of car is being done from India. So give it a chance.

 

[Skies]

You want to build Rome in a day. Criticism for sake of it. Suzuki cars were assembled in india By maruti-Suzuki still the research was with Suzuki. In the mean time ancilliary parts industry developed also giving other auto companies the confident.Now Maruti is doing designing and research in India itself.

Now exports of car is being done from India. So give it a chance.

I should not have any problem to import anything from India. But my first choice is making products by ourself. Also if India can make Rocket then why we can not a own motor industry. This is not any big deal! I know some people say that we should not compare with India or Pakistan. But I'm not comparing ourself with west like Rome or USA. Everyone should compare him with his neighbors. If as a big country India can do lot of things then we should do some of them at least in little extend. To me, that's the way to improve. BTW, India is really a model to follow in context of how a country is self dependent.

 

[kumar_V1.0]

I should not have any problem to import anything from India. But my first choice is making products by ourself. Also if India can make Rocket then why we can not a own motor industry. This is not any big deal! I know some people say that we should not compare with India or Pakistan. But I'm not comparing ourself with west like Rome or USA. Everyone should compare him with his neighbors. If as a big country India can do lot of things then we should do some of them at least in little extend. To me, that's the way to improve. BTW, India is really a model to follow in context of how a country is self dependent.

Actually that's what I said. You need to have domestic industry but a fact is that you need to learn that business through a process and that process is joint venture which Tata seem to be offering. You cant create whole industry in vacuum , its going to be a slow painful process and once the foundation is made you can launch.

Even in soft drink industry we started by having a domestic bottling plants to start with and now we have some decent soft drink brands.

 

[Al-zakir]

This so-called industry insider fellow is unnecessarily talking about the Toyota influnce in BD market. A market for a particular good is not something permanent. When varities of substitute goods are available in front of the customers, they can make their own choice, whether to buy a Toyota or to buy a made-in-BD nano.

People have different tastes and different demands. Some have thin purse, yet some have fatter ones. So, better we encourage nitol to build a car assembling plant in BD.

This is always the base point that can be expanded to the manufacturing of car body and body parts.　Next phase can be the assembling of engines. Further expansion can be made in making the mechanical, electrical and electronics parts.

Unless one or two companies come forward with a car assembling plant as nitol is considering, an expansion cannot be made to manufacture the other backward linkage products.

Eastwatch
Perhaps you mean well but we need to foresee biger picture here. Tata is a giant and once it make it way into bd than our own potential home grown industry will die out. They will not be able to compete with gaint like tata.

you heard about walton. This industry has opened our eyes. It is doing phenomenal job and become role model for others to follow. It is 100% bangladshi own and they have done it without any foregin help.

You may also heard about the place called jinjirah where small electronic and mechanical products like fan are being build for local market. These guys got enormous potencial yet not able to grow because lack of goverment funding and electricity.

Rahim afroz building the bigest battery factory in SA. Our ship industry already made is mark in international arena.

We have the man power and technical know how but need government patroniziation. Building car is not a big deal in these days. we already have basic infrastructure in place. All we need massive funding for local industry like walton to reach maximum height. Let us build bd with bd's and not with bharati.

 

[jagjitnatt]

Even the Toyotas that is the ''prefered" brand as stated by the Author is not indigenous. Tata might not be on par with Toyota at quality but its not that its very inferior. Tata has become a world class automobile company selling in more countries than one can count.

Further, Tata would invest millions in BD, employ local people, which would be great for BD. Its a known fact, that a developing country cannot grow on its own. Its GDP is so small that it can barely do anything productive with it. A developing country requires foreign investors to invest in billions and tap the local resources. This is the only way a developing country can grow. China and India are a perfect example of this. Thousands of companies invested in India and China and you can see the result.

Once the country has enough liquidity and is comfortable with investing itself, then BD can start with indigenous projects.

 

[peacekeeper]

Eastwatch
Perhaps you mean well but we need to foresee biger picture here. Tata is a giant and once it make it way into bd than our own potential home grown industry will die out. They will not be able to compete with gaint like tata.

you heard about walton. This industry has opened our eyes. It is doing phenomenal job and become role model for others to follow. It is 100% bangladshi own and they have done it without any foregin help.

You may also heard about the place called jinjirah where small electronic and mechanical products like fan are being build for local market. These guys got enormous potencial yet not able to grow because lack of goverment funding and electricity.

Rahim afroz building the bigest battery factory in SA. Our ship industry already made is mark in international arena.

We have the man power and technical know how but need government patroniziation. Building car is not a big deal in these days. we already have basic infrastructure in place. All we need massive funding for local industry like walton to reach maximum height. Let us build bd with bd's and not with bharati.

well we also thought the same way to protect our domestic industries from the foreign ones before the economic reforms of 1991.
but this is a bad practice since this stagnant the industry growth because there is not much competition in the domestic market, and the domestic industry is free from foreign competitor.
The domestic industry does not spend on R&D and there is not much development and consumers has to purchase whatever domestic industry offers and they don't have choice.
with foreign competition there is pressure on domestic industry to continuously enhance its products and thus consumers get lot of choices and the price reduces and more and more low income group people add and the market increases

 

[Isaq Khan]

I should not have any problem to import anything from India. But my first choice is making products by ourself. Also if India can make Rocket then why we can not a own motor industry. This is not any big deal! I know some people say that we should not compare with India or Pakistan. But I'm not comparing ourself with west like Rome or USA. Everyone should compare him with his neighbors. If as a big country India can do lot of things then we should do some of them at least in little extend. To me, that's the way to improve. BTW, India is really a model to follow in context of how a country is self dependent.

Bandhu, tume amar baat bujhbe kari na. apologize for bad bangla.


Importing is not bad and Even Mighty USA is dependent and imports from China.

But side by side one has to develop its own capabilities.

Look at India, presently it has one of the fastest growing automobile Industry and few decades ago what was India's position is not hidden from you.

The Suzuki a Japanese company was invited by Indira Gandhi a prime minister who have got vision for India.

Then with government of India and Suzuki started a joint venture firm namely Maruti Suzuki India Ltd.

1. The Suzuki provided technology and know how.

2. Suzuki advises to the Indian small and medium industries about what to be made and how to be made.

3. Suzuki even provided capital to Indian companies in exchange of shares.

4. Suzuki also guarantees minimum order to India suppliers.

5. So, Indian supplier get technology, order and even capital in some cases.

6. Then slowly and surely with the Maruti Suzuki Indian supply chains and Industries also develops.

7. Seeing its success encourages Indian companies like Tata and Mahindra and rest is history.

Bangladesh can also become automobile hub as bangla people are very talented and a friend like India is there to help.

It will be a mutually beneficial partnership.

And at last see the example of Mamta banarjee who have protested against Tata Neno plant in West Bengal and other state government Gujarat invited Tata and now there are thousands of jobs in Gujrat, property near by gets boom, Gujarat of government gets tax and the Gujarat gets boast as a industries and investment friendly state, and West Bengal become the looser.

 

[Skies]

Even Mighty USA is dependent and imports from China.

@ you and BD's all politicians

USA imports huge garment products from BD. Why? Can't they make their own garment? Yes they can. But they import from BD because of very low labor cost in BD. So for that same reason they import from China too. So that importing is not bad for them. Also beside they export more sophisticated products to the world like defence elements at high cost. So compare to that situation what we are doing? We are importing both sophisticated and general elements from the world. We have deficiency of tech. and fund that's why we can import sophisticated products but why we have to import general products like vehicles.

You are talking about shearing with TATA. Well I agree that staring with help of foreign company can be good for BD. But why we have to think only for TATA. We have bad experience with TATA car and Maruti-suzuki car for their low quality. Why not BD invites Suzuki or Korea or else who can help? Why not our Nitol group is not promoting our indigenous company called Walton. Nitol group says/pretends that they are giving people service. But I will say them at first promote our indigenous Walton group instead of TATA if you are patriot and want to serve BD largely and really.

Really, we need foresee instead of immediate benefits.

 

[idune]

Nitol motors is making Bangladesh dumping ground of indian junk. The Nitol is trying get 10,000 indian taxi cab which already been proven junk in Bangladesh.

 

[Peshwa]

Nitol motors is making Bangladesh dumping ground of indian junk. The Nitol is trying get 10,000 indian taxi cab which already been proven junk in Bangladesh.

Flip the coin and think about the nos of Bengali's that will have a job thanks to this news.....

Quit being so damn paranoid.....

 

[policecontrolroom]

Nitol motors is making Bangladesh dumping ground of indian junk. The Nitol is trying get 10,000 indian taxi cab which already been proven junk in Bangladesh.

India is certainly not the only car manufacturer in the world. if its junk just dont buy it.

In tatas case Inidans too dont want the jobs to be send to BD. its better for india if the jobs stay here and India just exports them. But just like bmw , suzuki ,hyundai Gm and all are doing setting up plants in INDIA , BD should alos try it. India just has 2-3 local manufacturers with majority share of cars from other countries. same case in bike too. but Inida dont complain they want Indianised bikes only in market.