Manufacturers rev up production of higher-cc bikes

Almost all motorcycle manufacturers are set to bring luxury motorcycles of high engine capacity to the local market within six months after the government decided to allow up to 350cc bikes to ply the streets of Bangladesh in September this year.

Previously, bikes with over 165cc (cubic centimetre) engines could not be manufactured or imported for the local market.

The cc is a measure of the power output of an engine. Higher cc motorcycles generate more power and more torque at lower engine speeds.

In the Import Policy Order 2021-24, published in April 2022, the government said manufacturers would be able to import machinery and spare parts required to manufacture 500cc bikes. However, the caveat was that bikes over 165cc could only be exported, not sold on the local market.

This prompted the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) to send a letter to the ministry of commerce in January this year, stating that motorcycle manufacturers had already invested huge sums in the research, planning, and setting up of factories for the production of motorcycles up to 500cc.

As such, the FBCCI said, it would not be possible for manufacturers to cover their investments solely through exports.

Finally, in September this year, the government approved motorbikes with up to 350cc engines for the streets of Bangladesh. However, the ban on imports of completely-built bikes over 165cc remained in place, meaning only locally-manufactured bikes which crossed the 165cc threshold can ply the streets.

As a result, ACI Motors Limited, Royal Enfield, TVS Auto Bangladesh, Hero Honda, and Bangladesh Honda Pvt Ltd are preparing to locally manufacture higher cc motorcycles to meet bike lovers' demands.

Uttara Motors, the manufacturer and distributor of Bajaj motorcycles in Bangladesh, recently launched the first higher-end bike in the country, unveiling the Pulsar N250, which features a 250cc engine.

Uttara Motors is manufacturing Bajaj Motorcycles in its factory in Savar, which can produce 300,000 units annually.

Ifad Group, which struck a deal to manufacture Royal Enfield motorcycles, has so far invested Tk 150 crore and that number is slated to go up to Tk 250 crore.

They expect to go into commercial operation in July, 2024 and will launch four models of Royal Enfield motorcycles: Bullet, Meteor, Hunter, and Classic.

HMCL Niloy Bangladesh Ltd (HNBL), a joint venture between Niloy Motors Ltd and Hero MotoCorp Ltd (HMCL) of India, has already started manufacturing and plans to bring 221cc motorcycles to the market within the next three months.

Abdul Matlub Ahmed, chairman of Nitol Niloy Group, said manufacturers would produce high-end motorcycles but added that he did not expect this market to boom in Bangladesh.

He opined that, at best, 2 percent of the market would be occupied by higher cc motorcycles because buyers will purchase them more for their hobbies than regular use.

Despite all the manufacturers being aware of the future of the market of luxury bikes in Bangladesh, this segment will increase the beauty of the industry, he noted.

Shah Muhammad Ashequr Rahman, chief financial officer at Bangladesh Honda Pvt Ltd, said there was a petition in the Supreme Court of Bangladesh regarding higher cc motorcycles. If the verdict comes in their favour, they will bring higher cc motorcycles.

"We plan to bring higher cc bikes after the court order," he noted.

Similarly, TVS is ready to manufacture higher cc motorcycles.

Biplob Kumar Roy, chief executive officer of TVS Auto Bangladesh, said they are waiting for an import permission order from the government to bring the higher cc motorcycle.

Subrata Ranjan Das, executive director of ACI Motors Limited, the sole distributor of Yamaha motorcycles, said they would begin manufacturing higher cc luxury motorcycles within the next six months.

He also opined that this segment would not grow like the general motorcycle market.

As per market data, a total of 587,689 motorcycles were sold in 2022 while 587,925 units were sold in 2021.