Plans to set up motorbike plant
Japan’s automobile and motorcycle manufacturer Honda Motor Co plans to form a joint venture in Bangladesh this year to produce motorcycles, the Reuters reported on Saturday quoting a Nikkei report.
Honda used to sell motorcycles in Bangladesh through Indian motorcycle maker Hero MotoCorp Ltd.
The Japanese company cancelled its tie-up with Hero in 2011, the Nikki reported.
The venture, with a local business, will set up a low-cost assembly plant with an annual sales target of 10,000 to 20,000 units, the business daily said.
The motorcycles will be built for the local market from components shipped from India and Pakistan, it reported.
Annual motorcycle sales in Bangladesh are about 100,000 units, the daily said.
A senior official of a local motorcycle manufacturer said that a Honda delegation had recently visited a local manufacturing plant in Bangladesh.
‘The Honda officials submitted a report to head office that there is convenient facility for setting up an assembling factory. The head office is yet to talk with any local business operators on the issue,’ he said.
He said that if Honda assembled 10,000 to 20,000 units a year, it would not be a threat for the local manufacturers.
The Honda has recently assigned a reputed researcher company to carry out the market proposition and scope of home appliance and automobile market of Bangladesh, he said.
‘Perhaps, the Honda would move to the next phase if the report looks feasible,’ he said.
Courtesy of New Age
