Credit must be given to both the local manufacturers for capitalizing on this demand and expanding the market
It is highly encouraging to see that the local automotive battery market is booming.
Fuelled mostly by the widespread use of battery-run three-wheelers in the rural and semi-urban areas, beyond meeting local demand, the product is also being exported to around 70 countries.
The market, which has seen consistent double digit growth, particularly over the last decade, currently enjoys a domestic market size of Tk8,000 crore and brought in $40 million in exports in FY18.
With the global automotive market projected to increase in value, Bangladesh must look to make the most of this.
To that end, credit must be given to both the local manufacturers for capitalizing on this demand and expanding the market, but also the government and relevant authorities, who have helped with incentives and with creating a favourable environment for this market to flourish.
Indeed, with close to two-thirds of the market demand being generated by battery-run rickshaws and easy bikes, the improved road conditions and increasingly common gravelled roads in the rural areas of the country have been directly responsible for their presence, for which the relevant authorities must be given plaudits.
This is the sort of economic cooperation we wish to see in all sectors of the country, where government initiatives and incentives lead to local manufacturers capitalizing and expanding their businesses, thereby helping the economy.
For too long, there has been talk of Bangladesh’s need to diversify its production expertise beyond just its RMG sector, and there is hope that the automotive battery market will continue to flourish and provide the right boost to the overall economy.