Saturday, 28 November 2020

Automotive industry in Bangladesh


Bangladesh's automotive industry is the third largest in South Asia . There are several large car factories in Bangladesh that collect and assemble Mitsubishi and Proton passenger cars and Hino and Tata commercial vehicles.

Motorcycles , auto rickshaws and locally designed three-wheeled mixers are made in Bangladesh.


 Pragati Industries Limited (PIL) is one of the oldest and largest automobile manufacturers in Bangladesh.  The company has added more than 50,000 vehicles since its inception in 1986. In February 2010, Japanese carmaker Mitsubishi formally proposed to the Bangladesh government to merge Mitsubishi Pajero Sports locally in collaboration with Progress.  It started operations in August 2011 with an annual production capacity of about 500 units.

In 2009, Malaysia's Ajet Group, in collaboration with Walton , offered to build a car manufacturing plant in Bangladesh, which is preparing to make its own motorcycles. In the same year, carmaker Tagged announced that it would build its third factory in Bangladesh, aimed at exporting cars. The factory is expected to be completed by 2012. 

In March 2015, the PHP Group and Proton announced plans to add Proton cars to Bangladesh.   To facilitate the annual production capacity target of 1,200 units, a new factory will be constructed in Chittagong at a cost of Tk. 400 crore. In May 2016, PHP Automobile launched Proton Price in Bangladesh.  The company seeks to bring Priv to the market as an alternative to imported cars that influence the local market.

In August 2016, Photon Motors, a Chinese carmaker, announced plans to set up a factory in Bangladesh to assemble commercial vehicles in a joint venture with ACI Motors within the next year .  

In May 2019, Mitsubishi Motors, a legend in the Japanese automotive industry, decided to invest   100 million in Bangladesh to build its branded vehicles. The company will initially invest in the addition of cars to the Mirsarai Economic Zone in Chittagong and will gradually upgrade the addition factory to a full-fledged car manufacturing plant. 

Motorcycle and scooter

Bangladesh in 2012. Since then many other local companies have been involved in motorcycle production. Some local companies like Roadmaster Motor, Jamuna Automobile are some of them.

In 2014, Hero Motocorp re-entered the Bangladesh market with the help of Nitol-Niloy Group and expressed interest in setting up a manufacturing plant within a few years. In 2016, Hero Motocorp launched a motorcycle manufacturing plant in a joint venture with its local partner Niloy Motors (a subsidiary of the Nitol-Niloy Group).

In 2016, Runner Automobiles signed a cooperation agreement with UM Motorcycles to manufacture UM motorcycles in Bangladesh in the name of UM-Runner. The motorcycles will be manufactured at Runner’s motorcycle manufacturing plant in Bhaluka , but UM International LLC will provide R&D support in the technical and engineering fields as well as global component sourcing. In the second quarter of 2016, Bangladeshi-made UM Runner motorcycles entered the market.


In September 2012, a joint venture agreement was signed between Honda and Bangladesh Steel and Engineering Corporation to form Bangladesh Honda Private Limited (BHL) , the first Bangladeshi subsidiary of Honda . Honda owns 80% of the shares in the joint venture. Subsequently, Honda committed to setting up a motorcycle manufacturing plant in the country. In November 2016, Honda Bangladesh held a dazzling ceremony to start construction of a motorcycle manufacturing plant in Munshiganj district of Dhaka . In November 2016, Honda opened their first motorcycle manufacturing plant in Munshiganj .

On 11 May 2019, ACI Motors Limited , the sole distributor of Yamaha motorcycles in Bangladesh, inaugurated the Yamaha Motorcycle CKD assembly plant at Barchala, Sreepur, Gazipur with an annual production capacity of 60,000 units. The Yamaha Motorcycle CKD Assembling Factory was established through the direct cooperation of Yamaha Japan and provided the necessary equipment and technical support to ensure the quality of each stage of production equipment. The first two models will be assembled in the factory and production of motorcycles will start from 2020.  

Automobile companies in Bangladesh 

  1. Bangladesh Honda Private Limited (a subsidiary of Honda )

  2. Bangladesh Machine Tools Factory

  3. Jamuna Automobile

  4. Aftab Automobile

  5. Niloy-Hero Motors (a joint venture of Hero Motocorp and Niloy Motors)

  6. PHP automobile

  7. Progress

  8. Roadmaster Motor

  9. Runner automobile

Walton Hi Tech Industries Ltd.

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