Tapping into car assembly

THE only passenger vehicle till date to have been assembled in Bangladesh is the Mitsubishi Pajero by State-run Pragati Industries. The venture started in 2011 has been a commercial success. PHP, a Chittagong based conglomerate follows in its footsteps with plans to set up a plant that will assemble Malaysian Proton cars. The initial target is to assemble 1,200 sedans per annum, that still constitutes 8 per cent of the annual demand for such vehicles in the country. The aim is to ultimately manufacture parts and other components in the future. The venture is to cost the company Tk 400 crore and is the first such initiative by a private Bangladeshi company to tap into the ever growing demand for passenger cars in the country. 

We laud the initiative as a bold move that will not only introduce domestic manufacturing of vehicles but also help develop technical expertise of skilled manpower in the country. It is interesting to note that the Proton is going to be priced in the same bracket as reconditioned vehicles that are at present imported predominantly from Japan. The major difference being that the Protons will be newly built cars as opposed to used vehicles that are imported from abroad. The venture will also create employment opportunities for both blue and white collar workers. Ancillary industry involved in the manufacture or import of wheels, dashboards, tyres, etc. is expected to benefit as demand grows for the vehicle.