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Bangladesh - Corporate - December 29, 2022

Automobile industry growing rapidly in BD

Ashfaque Choudhury: The automobile industry in Bangladesh has been growing rapidly over the past few years.In the past, the automobile industry in Bangladesh was limited to the assembly of cars from imported parts, but now the industry has gone beyond that and is manufacturing vehicles with locally made parts as well as importing vehicles from abroad. In the past, the automobile industry inBangladesh was dominated by Japanese brands such as Toyota, Nissan, and Honda. However, in recent years, there has been an increase in the number of Chinese, Korean, and Indian brands entering the market. This has allowed Bangladeshi consumers to have a wider range of options when it comes to purchasing cars.
The present automotive industry in Bangladesh is seeing a lot of growth and development. Many new plants are being set up to manufacture vehicles and components locally. This is allowing the industry to become more competitive while also creating more jobs for people in the country.
There are now more than 30 automotive companies in Bangladesh, including some of the world’s leading brands such as Tata Motors, Mahindra, and Volkswagen. The future of the automotive industry in Bangladesh looks very promising. The government has taken several steps to promote the industry, including offering incentives for foreign investment and creating a more competitive environment.
The automobile industry is lacking in innovation, with only incremental improvements in fuel efficiency,
emissions, and safety technology.
Additionally, the industry is still largely reliant on a heavily polluting internal combustion engine and has done little to develop more sustainable alternatives.
However, Bangladesh is still in the early stages of the auto industry, but the government has set a goal of being able to export automobiles by 2025. Currently, there are several companies working on research and development for Bangladesh’s auto industry, and the government is providing assistance to these companies in order to help them reach this goal.
When this correspondent asked industry insiders about the ways Bangladesh can establish a larger automobile industry, the researchers said, streamline the bureaucratic procedures for setting up an automotive industry, including regulations on imports, taxes, and licensing. Introduce incentives for investment, such as tax holidays and low-interest loans, to encourage foreign investors to set up factories in Bangladesh. Provide access to skilled labor and technical expertise through vocational training and apprenticeship programs. Establish research and development centers to develop sustainable and efficient automotive technologies. Create a network of suppliers to provide automotive parts and components. Work with international automobile companies and organizations to develop partnerships and create joint ventures. Introduce policies to encourage the use of electric vehicles and other green technologies. Develop infrastructure to support the automotive industry, including roads, ports, and other transportation networks. Encourage local entrepreneurs to invest in the industry through financial support and business incubation programs.

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