Tata Motors plans assembly unit in Bangladesh, to make 50,000 cars a year

[Black_cats]

Tata Motors plans assembly unit in Bangladesh, to make 50,000 cars a year

http://wap.business-standard.com/ar...o-make-50-000-cars-a-year-118051500238_1.html

Ajay Modi | New Delhi | Last Updated at May 15 2018 10:32 IST

Homegrown automobile major Tata Motors is planning to set up an assembly plant for cars and other vehicles in neighbouring Bangladesh during the current financial year. The plant is expected to produce about 50,000 vehicles annually that will cater to Bangladesh as well as markets like Myanmar. The facility will bring down the cost of logistics and production.

The plant, meant to assemble completely knocked down (CKD) vehicles exported from India, will be set up in partnership with Nitol Motors, part of Bangladesh’s Nitol Niloy Group. Nitol Motors has been assembling Tata’s commercial vehicles in Bangladesh since 1991 under a joint venture company. Nitol Motors also happens to be the authorised distributor for Tata vehicles in the country.



“Tata Motors is exploring the possibility of CKD plant assembly in Bangladesh in 2018-19 with the help of Nitol Motors. This will answer the surging demand in the north-east region as well as Myanmar. This arrangement is slated to produce 50,000 vehicles annually. It could contribute to a spike in the company's market share in the country,” said a page on Bangladesh in Tata Motors web site dated May 3. The investment that will go into this plant is not known at the moment.

Tata Motors said in the last three years it has moved to the first position in Bangladesh’s car market from being the fifth player. The company entered the Bangladesh car market in 1972 and launched vehicles such as Indigo eCS, the Manza and the Vista. “We are a preferred brand (in Bangladesh) owing to our technology-driven, fuel efficient models. Our long-standing association with this country has given us a remarkable acumen into the commuting preferences of the people,” the company claimed.

Locally assembled vehicles in Bangladesh enjoy a significantly lower tax rate of 60 per cent, less than half than the rates attracted by completely built imported units. Abdul Matlub Ahmad, chairman of the Nitol Niloy Group, had told Business Standard last year that the company had submitted a proposal to Tata Motors and had indicated that it would approach Datsun or Toyota in case the Indian company is not keen to invest in the CKD plant.

Besides Tata Motors, a large number of Indian auto makers have a presence in Bangladesh. Commercial vehicle maker Ashok Leyland has an assembly unit in the country while two-wheeler major Hero MotoCorp has a manufacturing unit (both these units were inaugurated last year). M&M also launched its first assembly plant in the country last year.
First Published: Tue,May 15 2018 10:27 IST

 

[Skies]

I will ridicule someone silently if he owns a TATA car.

 

[Quibbler]

I will ridicule someone silently if he owns a TATA car.

That is all you can do. Be silent about it. While be go about serving your market, doing business. You are making fun a company who has more than 150 Billions $ in market cap and even in India is regarded high for its market ethics and values.

 

[Ryuzaki]

I will ridicule someone silently if he owns a TATA car.

Will you salute someone if he owns a second hand imported car?

 

[Dot]

What a loads of Bullshit here..... Tata cars are a waste and one will hardy see any personal vehicle from Tata (not trucks) on the street.

 

[Skull and Bones]

Funny, the dumping ground for used Japanese cars are talking about quality.

 

[Skies]

Will you salute someone if he owns a second hand imported car?

Dont know but with Japaneses second hand car we are confident

You are making fun a company who has more than 150 Billions $ in market cap and even in India is regarded high for its market ethics and values.

Big population, big market share.

 

[Mage]

I will ridicule someone silently if he owns a TATA car.

What's the point? One can buy whatever((legal) he wants with his/her money.......

What saddens me is that we don't have our own car manufacturing industry....and completely dependent on foreign brands assembling vehicles in BD....

 

[sazzad99]

TATA vehicles aren't that popular here for private use but there is a good demand for their commercial vehicles. They would make profit if they start assembly production of their heavy duty trucks and mid range pick up trucks here.

 

[EasyNow]

50,000 more cars on the road every year just from one company?! I'm not sure our infrastructure can handle it. We need better public transport not more cars.

 

[bluesky]

Will you salute someone if he owns a second hand imported car?

I give you some explanation of Japanese used cars in BD. Japan has a mandatory Vehicle Inspection Certification system every two years, the owners change the engine oil regularly every 5,000 km of run and the gasoline is without lead or other debris. BD govt. does not allow importing a vehicle older than 5 to 6 years depending upon the month of first registration.

Perhaps, you know Japanese are meticulous people. Whatever they build it must be 100% perfect. There is no such thing as 99% perfect in their vocabulary. So, cars are built meticulously, engine oil is changed regularly. As a result, an imported Japanese used car may run for another 20 years in BD.

So, can the TATA cars be used that long? I have heard Indian car bodies rust in the first year of rainy season. However, I think, it is generally good that TATA will invest in BD. I expect their trucks/buses to be assembled here.

 

[Homo Sapiens]

We need car manufacturing plant in Bangladesh.Even if it TATA. I can't remember any other country in world with over 100 million people who don't have car manufacturing plant. Tiny Slovakia(pop. 5 million) with just 89 billion dollar GDP is producing 1 million car every year. We are now begger in this front. We should not be choosy.

Motor vehicle industry is a crucial part of industrialization for any country. We can't expect to become industrial economy continuing to ignoring this crucial component.So I welcome this move on part of TATA.

 

[Mage]

Whatever they build it must be 100% perfect. There is no such thing as 99% perfect in their vocabulary.

I get what you are saying....but you are going overboard with that 100%, 99% perfection measurement.

 

[Doctor Strange]

For cheap commercial use they will have a big market share. But not that great for personal use. I see nano/qute etc have a future here to take over the place of unreliable CNG auto rickshaws.

 

[bd_4_ever]

I actually think Nano would be a good choice given the street and traffic condition in Dhaka. Never used a TATA, so not going to make any comments on it tho.