Estimates price at Tk 18 lakh
Japanese automobile giant Mitsubishi Motors Ltd has recently placed a formal proposal to the Bangladesh Steel and Engineering Corporation for assembling sedan car in Bangladesh as soon as possible in a bid to catch the market through supplying the motor vehicle at affordable price, officials concerned said. In the proposal placed on October 23, Mitsubishi offered for assembling sedan 1200cc car in factory of Pragoti Industries Ltd, an enterprise of the BSEC, they said.
Mitsubishi estimated that the price of assembled sedan would be at Tk 18 lakh, subject to reduction of the existing duty structure. Sedan is currently selling in the country at minimum Tk 25 lakh.
Currently, state-owned Pragoti is assembling Mitsubishi Pajero and Mitsubishi Pajero Sport models in its factory.
‘Assembling [of the sedan car] will be started after completing necessary preparations including managing funds that will take some time,’ BSEC director (planning and development) Sheikh Md Mobarak Hossain told New Age on Sunday.
He said that Pragoti would require Tk 70 crore to start the assembling process.
According to the proposal, Mitsubishi will
supply Pragoti with complete knock-down sedan car and provide it with technical assistance in assembling process.
Mitsubishi also proposed for reduction of customs duty on import of CKD sedan car to 43 per cent from the existing 103 per cent so that Pragoti can provide the buyers with the vehicle at affordable price.
The officials said that the BSEC had already sought funds from the government and requested for reviewing the current duty structure.
They said that Mitsubishi Motors conducted a study on the possibility of the sedan assembling project in Bangladesh and found that the buyers could be provided with small-size 1200cc sedan car at affordable price.
Pragoti and Mitsubishi are eying to assemble at least 4,000 to 5,000 sedan cars in Bangladesh a year initially and the number will be increased gradually, they said.
Finally, the Japanese giant in motor vehicle manufacturing sector will transfer technology to Pragoti to help it go for car manufacturing in future, they added.
Presently, Rangs Motors is the sole distributor of Mitsubishi cars in Bangladesh.
The BSEC officials said that Rangs would also do marketing of Pragoti-assembled sedan cars.
Earlier in 2011, Pragoti and Mitsubishi agreed to set up a joint venture plant in Bangladesh for assembling the car.
-With New Age input
