Motorbike: Bonanza for local manufacturers
With the governments decision to extend the VAT exemption to locally made motor bikes, the sales of the two-wheelers expect a bonanza in the future. This is, indeed, an affirmative news for the economy since several local companies are involved in making motorbikes, which are providing vehicles at an affordable rate and creating employment for thousands of young people.
Reportedly, the sales of motorbikes have gone up to 4.5 lakh units per year a clear indication of a burgeoning market. Several surveys carried out by manufacturers show that, currently, seventy five per cent people in Bangladesh are below forty, which means, there is a massive market within the country for bikes. But this revelation also sheds light on an emerging country where GDP stands at an enviable $4561 an undeniable sign that middle class Bangladesh is massive with the capacity to afford personal transport.
Along with a large homogeneous middle class with money to spend, there is also the premise for local manufacturers to consolidate their base and seek out new markets out of Bangladesh. Local brand, Runner, has three outlets in Nepal; however, through aggressive marketing, bikes produced in Bangladesh can also be exported to developing nations in Africa and South America.
In exporting motorbikes, the biggest competitor for local products is Indian manufactured ones. To challenge the already existing mammoth Indian motorbike industry, Bangladeshi manufacturers can adopt a two pronged strategy: offer vehicles at the lowest rates and enter into joint production with Japanese brands.
Honda, the world renowned brand, is reportedly opening a branch in November, which will surely give impetus to the local motorcycle industry.
At the same time, our own products have to be spread out across the country with special discount rates. The biggest promoter of local products is the government; therefore, if all the ministries are instructed to use locally made bikes for their courier service and other purposes, an interest will develop. With government endorsement, any industry can take up the toughest of oppositions. Today there are a handful of Bangladeshi bike manufacturers; if the incentives plus acknowledgements continue, others will follow.
Taking advantage of the ongoing air of optimism, manufacturers should take part in trade expositions in far-away continents, especially in developing countries.
This growing industry, intertwined with the aspiring youth of today, marks a Bangladesh moving forward
