Bangladesh Becomes The New Hub For Indian Auto Companies

Indian auto companies have identified Bangladesh as the new hub for Indian auto companies. Indian auto OEMs like Tata Motors, Ashok Leyland, Mahindra and Bajaj Auto are investing in Bangladesh to develop a suitable product portfolio, build a wide network of sales & services, and expand CKD assembly facilities.In the economic downturn caused by Covid, the Bangladesh market continued to sparkle while other markets suffered. Tata Motors is the largest commercial vehicle brand, including small & heavy CVs and buses in Bangladesh with a two-third share. Mahindra Automotive, which works with the local partner Rangs Group, has established itself in the pick-up segment. In tractors, Mahindra is exploring possibilities of local assembly of some specific products which will help the Bangladesh government in their program of ‘Make in Bangladesh.’ The company is also exploring possibilities in the aggrotech space to help farmers achieve higher yields and prosperity.Similarly, Chennai-based truck major Ashok Leyland, through its channel partner IFAD Auto, sells 65% of its locally assembled Light and Medium commercial trucks and buses in Bangladesh. Ashok Leyland is currently the market leader in the bus and 16T (Medium and Heavy commercial vehicle MHCV) segment.Despite the dominance of Japanese reconditioned vehicles, Indian passenger vehicles, two and three-wheelers, light trucks, and buses saw an average sales growth of 15-20% in Bangladesh in the last 2-3 years.SourceCover photo: Bhalogari