With Sri Lanka in an economic crisis, the auto companies in India are looking for a new hub to market their auto vehicles, and Bangladesh seems to be just the answer for them.
Bangladesh, which is on the verge of entering the boom, is looking forward to the Indian Auto companies making it the next hub of the automobile sector in South-East Asia.
Ashok Leyland, Tata Motors, Bajaj Autos, and Mahindra Autos have stepped up their game and are now looking to expand in the Bangladesh market.
The economic crisis in Sri Lanka shook the creditors and the lenders with the sudden default and the intense political crisis afterward. As a result, Sri Lanka, which was once the hub for the automobile assembling sector, is now facing huge economic and political instability.
The Bangladesh is eyeing the position of becoming the next automobile hub in the subcontinent after the fallout of Sri Lanka.
Now Indian automobile companies are seeking to market their vehicles in Bangladesh after they reviewed the increase in sales in the Bangladesh market. Tata motors, the largest automobile manufacturer in India, has invested in buses and small and heavy vehicles in Bangladesh, and it’s continuing to increase the shares each year since the construction of Padma Bridge and other expressways are increasing the demands for the local vehicles.
Seeing the investments of Tata Motors, other major Indian automobile manufacturers are investing in Bangladesh, hoping to increase their return on investments in Bangladesh’s automobile market.
Indian Automobile companies are capitalizing on the growth in Bangladesh by making investments in the automobile sector of Bangladesh. This makes Bangladesh the next hub of automobile manufacturing in South East Asia.
With the construction of the Padma Bridge and highways and expressways, the demand for buses is bound to increase in the country, and that demand is already increasing in the country.
Moreover, investing in the vehicle sector in Bangladesh is a smart move on India’s part since India has seen an increase of 5 to 6 percent in the sales of automobiles. Despite the dominance of Japanese auto vehicles, Indian automakers still increased sales by 15 to 16 percent, which gave them hope of investing further in the automobile market in Bangladesh.
The sales continued to increase in the past 2 to 3 years despite the dominance of Japanese vehicles in the market. The increase in sales is pointing towards a positive state of the automobile market in Bangladesh.
With increased potential investors, Bangladesh is becoming the next hub for Indian automakers in South East Asia.
Since the locals have great unity with the Indians, they easily trust the auto brands, making it easier for Indian automakers to step into Bangladesh’s auto market. As a result, the projected sales for the vehicles are expected to increase up to 16 to 18 percent in the upcoming years, and that is excellent news for potential investors to invest in the automobile sector in the Bangladesh automobile market.
