Meghna Automobiles, a prominent division of the Meghna Group, is making waves in the Bangladeshi automotive market by launching three brand-new KIA sport utility vehicles (SUVs) assembled at its state-of-the-art plant in Gazipur. The launch marks a significant milestone as the company aims to offer locally assembled vehicles at competitive prices, a major step forward for the country’s growing automotive industry.
Why New KIA Model Is Premium Choice for Local Buyers?
The three SUVs being introduced are the 1,500cc KIA Seltos, 1,500cc KIA Carens, and the 2,000cc KIA Sportage. These models cater to different segments of the SUV market and were designed to provide local buyers with premium options at more affordable prices. Anisuzzaman Choudhury, the executive director of Meghna Automobiles, confirmed that the official launch is imminent, with the vehicles expected to hit showrooms soon.
The Seltos and Carens models were previously showcased at the Dhaka Motor Show, creating buzz among car enthusiasts. In addition, Meghna Automobiles has successfully secured type certification from the Bangladesh Road Transport Authority (BRTA), a critical step that allows these vehicles to be legally sold in the local market.
Making Brand-New SUVs Affordable!
One of the most compelling aspects of this venture is the price difference between locally assembled and imported vehicles. The locally assembled KIA Seltos is priced at around Tk 43 lakh, compared to Tk 52 lakh for the imported completely built-up (CBU) version. Similarly, the KIA Sportage, assembled in Bangladesh, costs Tk 58 lakh, significantly lower than the Tk 78 lakh price tag on the imported version.
Choudhury explained that although Meghna Automobiles aimed to reduce the price difference by Tk 10-12 lakh, the sharp depreciation of the Bangladeshi taka against the US dollar limited the cost reduction to around Tk 8 lakh per vehicle. Nevertheless, these locally assembled cars still present a highly attractive option for buyers seeking brand-new SUVs at more affordable prices.
State-of-the-art assembly Plant and Local Expertise Development
Meghna Automobiles’ assembly plant, located in Barmi, Gazipur, spans 15 acres and was developed at a cost of Tk 275 crore, or approximately $25 million. This facility is equipped to handle the assembly of completely knocked down (CKD) kits, which are imported in parts and assembled locally. To ensure the highest quality, South Korean engineers and technicians from KIA will oversee operations at the plant for the first two years. Over time, local technicians will be trained to maintain the quality standards required by KIA, contributing to the development of local expertise in the automotive industry.
Fueling Growth in Bangladesh’s New Car Market
Meghna Automobiles’ venture into assembling KIA vehicles locally comes at a time when Bangladesh’s automotive market is evolving. While reconditioned Japanese cars dominate, brand-new vehicles account for around 18% of the market share. Industry experts predict the demand for new cars will surge in the coming years, with a projection that brand-new cars will dominate the market by 2030. Factors contributing to this shift include increasing affordability and growing consumer awareness of the benefits of buying new, locally assembled vehicles.
Choudhury highlighted some of these advantages, such as brand-new cars not needing a fitness certificate renewal for the first five years, whereas reconditioned cars need annual renewals. Additionally, locally assembled cars benefit from reduced customs duties, thanks to Bangladesh’s automobile policy encouraging local assembly over imports.
Meeting Market Demand with High Production Capacity and Robust After-Sales Support
Meghna Automobiles’ assembly plant can produce 7,000 vehicles per year. However, the company plans to start with 3,500 units annually, gradually scaling up as demand increases. Choudhury emphasized that Meghna Automobiles is committed to ensuring that customers have access to spare parts and reliable after-sales service through a well-distributed network of service centers across Bangladesh.
Key Takeaways!
Introducing locally assembled KIA SUVs marks a new chapter in Bangladesh’s automotive industry, offering customers high-quality vehicles at competitive prices. As Meghna Automobiles gears up for the official launch, the company is poised to capture a significant share of the growing market for brand-new cars, particularly SUVs. With robust production capabilities, expert technical support, and a clear focus on affordability, Meghna Automobiles is well-positioned to meet the rising demand for locally assembled cars in the country.
