Bangladesh is now emerging as the hub of the automobile sector in South East Asia. The country has been making leaps and bounds in the automobile industry after the economic crisis in Sri Lanka. And Bangladesh is now eyeing becoming the next automobile hub in the continent after the crisis in Sri Lanka.
With the development of infrastructure in the country, Bangladesh has seen increased demand in the automobile sector, which is projected to increase further in the upcoming years.
To cater to the increased demand for vehicles in the country, Bangladesh has developed a strategy to attract potential investors, mainly from India, and their strategy worked. Now, most Indian automobile manufacturers are investing in Bangladesh’s automobile sector with the hope of an increased rate of returns.
Since the investors demand a higher rate of return on their investment, Bangladesh understood this point clearly. Despite the dominance of Japanese automobile manufacturers, the market is demanding vehicles from local Indian automobile manufacturers, increasing the sales of Indian automobile retailers.
As the market stands now, Indian automakers are looking to build their assembly plants in Bangladesh to reduce production costs.
With the construction of the Padma Bridge, expressways, and highways, the country is experiencing steep but steady economic growth, which is also increasing the demand for buses and other large and small vehicles.
This construction has increased the demand for buses, with 400 to 500 buses being run on the tracks every year. And this demand is projected to increase to 4000 to 5000 buses in the next five years.
This is excellent news, especially for investors looking to get higher investment returns. Investing in a country near a boom is extremely beneficial and highly rewarding. And the investors did just that.
Tata motors, the largest automobile manufacturer in India, has increased its share in Bangladesh’s automobile sector to almost 6 percent. Seeing the move of Tata Motors, other automobile manufacturers are also investing in Bangladesh’s booming market. This contributes to the stable economic growth of Bangladesh.
Over the past years, the growth of the automobile sector has been immense, from 15 percent to a remarkable 20 percent till the year 2019. However, during the lockdown, with all the borders blocked, the country could not supply auto vehicles to the masses, and the demand also fell since most people were out of their jobs and had no backed-up savings to make their purchases.
But now, after the lockdowns are over, the country is making a steady recovery, and with the new and upcoming developing projects, it is making a name for itself in South East Asia.
According to the Daily Star, the automobile sector is now becoming the new hope for Bangladesh since the country is seeing rapid and steady growth in this sector.
