Two of the world’s most famous car manufacturers, BMW and Mercedes-Benz, could soon establish a plant offering assembling in Bangladesh.
The visiting German delegation, which includes executives from the companies, has held several rounds of talks with top Bangladeshi government officials to explore investment opportunities in the country.
Exploring Investment Options
According to officials, the companies aim to set up a plant in Bangladesh to manufacture some parts locally, with the remaining parts to be imported from Germany. The investment will reportedly result in a new vehicle being built in Bangladesh in the future.
The briefing was provided to the visiting delegation on the investment roadmap and the ease of doing business in Bangladesh.
Optimism About The Investment
Experts and analysts have welcomed the proposal with optimism, appreciating it as a important form of foreign direct investment for the country. The outcome of companies establishing their presence is set to upgrade the economy and enhance Bangladesh’s global reputation.
Such as large scaled FDI from Germany is expected to encourage other worldwide players to extend automotive investment to Bangladesh, and create opportunities for small and medium enterprises to grow and generate employment.
Bangladesh’s Fast-Growing Market
Bangladesh is one of the world’s fastest-growing markets, with demand for luxury cars increasing every year. Last year, approximately, 13,000 (reconditioned) cars were imported, according to the Bangladesh Reconditioned Vehicles Importers and Dealers Association.
Around 70% of the cars on the streets in Bangladesh are reconditioned, and mostly imported from Japan, while the new cars count that were imported from different countries remained around 30%. The new investment plans will allow upper-class buyers in the country to purchase brand new vehicles at a cheaper price.
The Organizers Of The Visit
The delegation led by Peter Fahrenholtz, the German ambassador to Bangladesh, is currently on a visit organized by the German Asia-Pacific Business Association and the Association of German Chambers of Commerce and Industry.
The aim of the visit is to promote and strengthen business relations between Germany and Bangladesh. The delegation will meet with key stakeholders from various sectors, including government officials, business leaders, and industry experts, to discuss opportunities and challenges in the region.
This visit is significant as it demonstrates the commitment of both Germany and Bangladesh to fostering a mutually beneficial partnership. By sharing knowledge and expertise, the two nations can work together towards achieving their economic goals.
As the visit progresses, the delegation will also have the opportunity to explore Bangladesh’s rich culture and heritage, deepening the cultural ties between the two countries.
Conclusion
The proposed investment by BMW and Mercedes-Benz in Bangladesh is a significant development that will help boost the country’s economy, create employment opportunities and offer luxury cars at cheaper prices to the upper class.
With the high-profile delegation from Germany in the country, exploring investment options, the proposal appears to be moving positively, with hopes of finalizing negotiations in the coming months.
