Suzuki Motors to Assemble Motor Cycles in Bangladesh

[eastwatch]

Suzuki teams up with Rancon to assemble motorcycles - Local company to set up Tk 80cr plant in Savar by Dec


Published: Friday, August 30, 2013
Suzuki teams up with Rancon to assemble motorcycles
Local company to set up Tk 80cr plant in Savar by Dec
Star Business Report


Suzuki Motor, a leading Japanese two-wheeler brand, is set to assemble motorcycles in Bangladesh in a bid to grab the growing domestic market.

The company plans to launch full-scale operations in the first quarter of 2014 in collaboration with Rancon Motor Bikes Ltd, a concern of Rangs Group.

“Bangladesh is a very big potential market for motorcycles due to its high population base,” said Katsumi Takata, general manager of Suzuki Motor Corporation’s global motorcycle marketing.
He went on to tip the country’s annual motorcycle sales to hit the 1.4 million-mark in the near future. The country sells up to 500,000 motorcycles annually, at present.

The two companies yesterday inked the deal, which involves Rancon constructing a state-of-the-art plant in Savar at a cost of Tk 80 crore to exclusively build Suzuki motorcycles.

The announcement of the collaboration comes at a time when its competitor Honda Motor Corp is wrapping up its preparations to launch a full-scale motorcycle assembly in the country in partnership with the state-owned Bangladesh Steel and Engineering Corporation.

“I have a long desire to manufacture motorbikes locally. Today, my dream has come into reality,” said A Rouf Chowdhury, chairman of Rangs Group, adding that his company plans to manufacture the two-wheeler vehicles locally within the next three years.

The plant is expected to be complete by December and the company to start selling motorcycles in February or March, according to Romo Rouf Chowdhury, managing director of Rangs and Rancon Motor Bikes.

Around 20,000 motorcycles will be assembled within the first year by sourcing all components in the completely knocked-down (CKD) format from India.

Initially, three models (ranging from 110, 125 and 150cc) will be on offer, with their prices ranging from Tk 1.25 lakh to Tk 2.5 lakh.

“Motorcycles have tremendous prospects here as proper transportation system is yet to be established,” said the Rangs Group MD, while singling out the rural areas.

“In many village areas, people cannot travel by bus due to narrow roads. In that case, motorcycles would be the best alternative.”

The Rangs MD went on to highlight the discrimination faced by the motorcycle assemblers, who pay 100 percent duty on CKD imports whereas the local manufacturers only pay 40 percent.
“There prevails a 60 percent tax gap between the motorcycle assemblers and manufacturers—it needs to be addressed as the motorbike is no longer a luxury item.”

 

[damiendehorn]

Suzuki teams up with Rancon to assemble motorcycles - Local company to set up Tk 80cr plant in Savar by Dec


Published: Friday, August 30, 2013
Suzuki teams up with Rancon to assemble motorcycles
Local company to set up Tk 80cr plant in Savar by Dec
Star Business Report


Suzuki Motor, a leading Japanese two-wheeler brand, is set to assemble motorcycles in Bangladesh in a bid to grab the growing domestic market.

The company plans to launch full-scale operations in the first quarter of 2014 in collaboration with Rancon Motor Bikes Ltd, a concern of Rangs Group.

“Bangladesh is a very big potential market for motorcycles due to its high population base,” said Katsumi Takata, general manager of Suzuki Motor Corporation’s global motorcycle marketing.
He went on to tip the country’s annual motorcycle sales to hit the 1.4 million-mark in the near future. The country sells up to 500,000 motorcycles annually, at present.

The two companies yesterday inked the deal, which involves Rancon constructing a state-of-the-art plant in Savar at a cost of Tk 80 crore to exclusively build Suzuki motorcycles.

The announcement of the collaboration comes at a time when its competitor Honda Motor Corp is wrapping up its preparations to launch a full-scale motorcycle assembly in the country in partnership with the state-owned Bangladesh Steel and Engineering Corporation.

“I have a long desire to manufacture motorbikes locally. Today, my dream has come into reality,” said A Rouf Chowdhury, chairman of Rangs Group, adding that his company plans to manufacture the two-wheeler vehicles locally within the next three years.

The plant is expected to be complete by December and the company to start selling motorcycles in February or March, according to Romo Rouf Chowdhury, managing director of Rangs and Rancon Motor Bikes.

Around 20,000 motorcycles will be assembled within the first year by sourcing all components in the completely knocked-down (CKD) format from India.

Initially, three models (ranging from 110, 125 and 150cc) will be on offer, with their prices ranging from Tk 1.25 lakh to Tk 2.5 lakh.

“Motorcycles have tremendous prospects here as proper transportation system is yet to be established,” said the Rangs Group MD, while singling out the rural areas.

“In many village areas, people cannot travel by bus due to narrow roads. In that case, motorcycles would be the best alternative.”

The Rangs MD went on to highlight the discrimination faced by the motorcycle assemblers, who pay 100 percent duty on CKD imports whereas the local manufacturers only pay 40 percent.
“There prevails a 60 percent tax gap between the motorcycle assemblers and manufacturers—it needs to be addressed as the motorbike is no longer a luxury item.”

They are gonna have to invest a heck of a lot more then just 80cr taka, to capture any of the local market. In the two wheeler sector the local players like runners and Walton are doing pretty good. But this is yet more good news and confidence in the Bangladesh market, I predict we will have our first car manufacturer in the decade or so.

To be honest, I never expected to see, bangladesh making cars in my lifetime but there you go, the gov and Mitsubishi are already negotiating the setting up of the new project, Walton doing the same etc. I think Bangladesh is nearing the fulcrum of its development when we move from a agrigarian economy to the beginning of a industrial base.

Come on Bangladesh, be proud, be strong.

 

[naveen mishra]

good news,
rikshaw load will reduce on street ,to much congested, some time feel difficulty, on walking on the street

 

[eastwatch]

good news,
rikshaw load will reduce on street ,to much congested, some time feel difficulty, on walking on the street

Do not you like Rickshaw? These are also a necessity, at least for the time being. We will replace Rickshaws with two and four wheeler, expressways and overhead electric commuter trains. All the projects are going on incessantly.

So, keep these Rickshaw pictures in your drawers to donate them to a museum in the very future.