Growing demand encouraging local manufacturing

Thanks to continuous economic growth and increasing connectivity in Bangladesh, the domestic demand for commercial vehicles is soaring rapidly. As a result, local entrepreneurs are investing in establishing assembly plants in the country, which would make the economy more vibrant as well as generate new jobs.

"As Bangladesh's economy is growing rapidly, so too is the demand for commercial vehicles," said Abdul Matlub Ahmad, chairman of Nitol-Niloy Group.

Besides, since the government has taken measures to phase out illegal commercial vehicles such as Nasimons and Korimons, the demand for legal replacements is surging.

"In fact, the demand has risen to such an extent we are now moving towards manufacturing rather than simply assembling," he added.

The company assembles pickup trucks at a factory of the Nita Company, a joint venture of Nitol-Niloy Group and Tata, in Kishoreganj.

Consumers will benefit more from local manufacturing as prices would be lower and remain unaffected by abrupt changes in the foreign exchange rate.

Regarding the recent trend in commercial vehicle purchases, Ahmad said the market was impacted by the ongoing coronavirus pandemic but the situation is now getting better.

"I hope 2022 will be a great year for the commercial automobile sector," he added.

Taskeen Ahmed, managing director of IFAD Autos, also opined, "since the local infrastructure is improving, the domestic demand for commercial vehicles is rising as well," he added.

Since 1988, IFAD Autos has been distributing commercial vehicles of India's leading automobile manufacturer, Ashok Leyland.

Ahmed went on to say that demand will continue to rise in the coming years.

People in the country's south currently depend on launch services but connectivity of at least seven districts in the region will change after the Padma Bridge is complete.

"So the demand for commercial vehicles would be higher," he said.

Similarly, the opening of Payra port within a few years will have the same effect while increasing trade with neighbouring countries will also continue to boost demand.

Realising the potential, many companies are trying to assemble their products in Bangladesh.

As such, foreign investment will come to the country and a huge number of jobs will be created, Ahmed added.

The Energypac Power Generation Company recently announced that it would assemble double cabin pickup in association with a Chinese carmaker at Energypac's state-of-the-art industrial park at Sreepur in Gazipur. They inaugurated the industrial park earlier this year.

"The demand for commercial vehicles moves with the movement of an economy,'' said SM Jashim Uddin," chief business officer of the motor vehicle division of Energypac Power Generation.

"Seeing a good prospect in our economy, we started our commercial assembly in 2015. Now, we are launching new models like the T8. In the last six months, the sale of commercial vehicles rebounded as the industrial wheel started turning," he added.