Yamaha Banner
Search

HONDA coming to Bangladesh

2012-09-21

HONDA coming to Bangladesh

The Japanese Honda Motor Co plans to form a joint venture company in Bangladesh to assemble motorcycles, as production cost had increased in other countries, said a senior official of the industries ministry yesterday.

Within five years of operation here, the company would go for full-scale motorbike manufacturing, said ABM Khorshed Alam, an additional secretary of the industries ministry.

Honda would form the JV plant with the state-owned Bangladesh Steel and Engineering Corporation (BSEC) soon, he said.

"On Wednesday, after vetting from the law ministry, I sent the summary of the deal for forming the joint venture company to the Prime Minister's Office for approval," said Alam.

After the go-ahead from Prime Minister Sheikh Hasina, the initial Tk 70-crore joint venture company will soon start operation at a rented abandoned garment factory at Maona in Gazipur. The company will increase investment after two years of operation.

Alam said the chief of Honda Motor would visit Bangladesh within 15 days of the approval for finalising the JV plant.

"We are trying to purchase a suitable piece of land for setting up the permanent plant," he added.

Of the total investment, BSEC will own 30 percent stake, while Honda will own 70 percent in the project, he informed.

The Japanese company was looking for a local partner over the last few years, but they were not convinced with the private sector. In 2009, they had proposed to the government for setting up a JV, he said.

He said the company was coming to Bangladesh as the demand for motorcycles in the country was increasing.

Generally, Honda sets up a plant in a country where 50,000 motorcycles are sold annually. But, in Bangladesh the annual sale of motorcycle is more than two lakh, he added.

The local light engineering sector would be immensely benefited if the company is set up. Some other motorcycle companies were also contacting the industries ministry for setting up their plants, the official added.

"I know Honda is negotiating with a state-owned company for setting up a joint venture plant," said a senior official of the Japan External Trade Organisation (JETRO) in Dhaka asking not to be named.

Rashed Ahmad Ali, president of Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), said Honda was coming to Bangladesh for the government's "China + one policy" (a policy adopted by the Japanese government to reduce dependency on China).

"The cost of production in China has gone high. That is one of the major reasons for shifting the production base to other countries," he added.

"The motorcycles will be built for the local market and with the components shipped from India and Pakistan," reports Reuters news agency.

After selling 26 percent stake in the JV Hero-Honda Company at a cost of $2 billion, Honda set up two manufacturing plants in India and the company is currently operating two other manufacturing plants in Pakistan as well, said media reports.

Bike News

Yamaha Wall Of Memories Yamahas 8th Anniversary in association with ACI Motors
2024-11-11

Yamaha has organized a special virtual event to bring all the memories together of all of you who are associated with Yamaha. ...

English Bangla
Lifan Bike Price in Bangladesh November 2024
2024-11-10

Lifan motorcycle brand in Bangladesh has long been providing sports, commuter and premium quality scooters at affordable pri...

English Bangla
TVS RR310 in Bangladesh
2024-11-09

Since last year the cc limit of bikes was 375, we have seen several brands bringing their higher cc bikes to Bangladesh, but w...

English Bangla
Bajaj Bike Price November 2024
2024-11-07

Bajaj motorcycle brand is a motorcycle brand widely known among the bike lovers of Bangladesh. Mainly because of its excellent...

English Bangla
CFMoto's technological agreement with KTM and Yamaha.
2024-11-06

In 1989, CFMoto started its journey as a manufacturer of motorcycle engines and parts in the city of Hangzhou, China, gaining ...

English Bangla

Related Motorcycles

Filter