Bangladesh motorcycle manufacturers said they would be able to grab 50% of local market share in next three years as supplementary duty on import has been raised.
As the local industry is expected to expand in the coming years with the increase of SD on bike import, it will create more employment opportunities for the new entrants, they said.
The proposed budget for the fiscal year 2015-16 has raised SD on the import of completely knocked-down motorcycles.
As per the proposed budget, SD has been increased to 45% from the current 30% to give a cushion to the local manufacturers.
At present, 25% of the country’s motorcycle demand is met locally.
“The SD hike will enable us to increase the market share to 50% in 2/3 years. To attain this target, we need continuous policy support from the government,” said Walton’s chief international marketing officer Lokman Hossain Akash.
He urged the government to continue the SD until the 50% of local demand is met locally.
The domestic manufacturers are able to offer the products at lower prices than that of the importers, said Akash.
He said: “Importers are making hefty profits without creating any jobs and making any big investment in the country.”
He alleged that the importers are seasonal businessmen and import products when there is a demand in the market, but on dull days, they won’t import.
Urging the government to increase SD 100% Akash said, in India there is 150% SD and in Thailand it is 157%, which helped to develop their local motorcycle industries and export the products.
The government has taken initiatives to encourage the investors to go for manufacturing so that the local industry can be boosted, he said.
“The proposed SD hike will help the country generate more jobs as the manufacturers will go for new investments,” said Motorcycle Manufacturers and Exporters Association of Bangladesh president Hafizur Rahman Khan.
He thanked the government for such step to protect local industry.
“If the government continues to provide the support to the manufacturers, it will encourage others to go to make new investments to increase manufacturing,” said Hafizur Rahman, who is also the chairman of the Runner Group, a local motorcycle manufacturer.
Currently, local firms Walton, Runner Group and Jamuna Group supply motorcycles to local market.
There are some other companies on the way to start manufacturing locally.
Currently, the local demand is about two lakhs of motorcycles annually with 20% growth.
