• Sunday, Oct 17, 2021
  • Last Update : 06:27 pm

Mitsubishi pens MoU with Bangladesh aiming to set up car factory

  • Published at 06:47 pm September 4th, 2021
Web_Mitsubishi-Car-Bigstock
Mitsubishi logo on a Mitsubishi car at a car dealer Bigstock

The Japanese auto giant is looking to expand its footprint in the country as it expects the automobile market to grow further along with its economy

Automobile giant Mitsubishi Motors is set to establish a manufacturing plant in Bangladesh, as a part of the company’s expansion in South Asia by 2025.

State-owned Bangladesh Steel and Engineering Corporation (BSEC) and Mitsubishi signed a memorandum of understanding (MoU) on Thursday.

In order to meet the country’s growing demand for cars, the Japanese company has been looking into ways to invest in Bangladesh for the last couple of years.

However, details about the amount of investment, production capacity, and the models that the Bangladeshi production unit will manufacture and the exact date for the production to start have not yet been disclosed.

These details will be determined based on the feasibility study - likely to be completed in December - that both parties will now conduct.

Ever since 1977, the famous Japanese brand has outsourced its production in Bangladesh to Pragoti Industries, whose parent company is BSEC.

Mitsubishi currently has no plants in Bangladesh in which the company holds an ownership stake.

Pragoti Industries is basically an auto assembly and parts manufacturer which is currently manufacturing the Pajero Sport, ASX and a few other models.

Last month, the two parties were in the final stage of coming to an agreement.

Industries Minister Nurul Majid Mahmud Humayun has urged for more foreign and local investments to accelerate industrialization. Not only in the automobile sector but also in the sugar, agro-food processing and ship recycling industries.  

Japanese ambassador to Bangladesh, Ito Naoki said: “This is a historic moment,” and expressed his satisfaction over the progress of the MoU signing for the feasibility study of setting up a Japanese car manufacturing plant In Bangladesh.  

According to Mitsubishi’s data, the brand has sold 1,700 vehicles and produced 200 cars in Bangladesh in 2020—the figures which the company plans to increase once the plant is set up.

To put things in perspective, in the last fiscal year-- amid the pandemic, 12,403 new sedans and 4,911 new SUVs were registered according to Bangladesh Road Transport Authority (BRTA).

The Japanese auto giant is looking to expand its footprint in the country as it expects the automobile market to grow further along with its economy.

Mitsubishi plans to cater to the South and Southeast Asian markets to increase its sales, as the economies of these countries are growing fast.

Currently, the company has its production bases in five countries in the Association of Southeast Asian Nations, including Thailand and Indonesia.


52
Facebook 51
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail