Atlas Bangladesh aims for revival thru new partnerships with foreign brands

In the wake of a subdued performance, motorcycle manufacturer Atlas Bangladesh, which produced only 20 motorbikes and sold just 110 units in FY'23, has taken strategic steps to revitalise its market presence.
The company has established a high-powered brand sourcing committee recently to identify promising brands from Japan, India and Europe to establish potential partnerships and improve the company's business prospects.
Once a market leader, which operated in collaboration with Japanese brand Honda and Indian brand Hero Honda, Atlas Bangladesh faced setbacks when both foreign motorbike makers terminated their partnerships in 2010.
In the company's financial statements for FY'23, the board of directors said they have created the brand sourcing committee to select superior products that can position Atlas Bangladesh for a successful comeback.
Atlas Bangladesh has been involved mainly in the assembly of motorcycles for the Bangladeshi market. However, after the departure of Hero Honda and Honda, the company sold off the remaining stocks of bikes associated with these brands.
Later, the company made efforts to form new partnerships with Indian or Japanese brands, but to no avail.
In 2016, Atlas Bangladesh entered into a two-year agreement with Chongqing Zongshen Motorcycle Group, a prominent player among China's top five two-wheeler manufacturers for importing, assembling, and marketing Zongshen motorcycles. Subsequently, the contract was extended for two more years.
However, motorbike buyers have not shown much interest in Zongshen motorcycles, resulting in sluggish sales.
According to the company's FY'23 financial statements, the high-powered committee will analyse renowned global brands. The objective is to identify and introduce products that can effectively compete in the Bangladeshi market against existing brands.
Atlas now plans to produce patrol bikes, electric bikes and rider's helmets.
The FY'23 financial statements paint a stark picture of Atlas Bangladesh's financial challenges. Over the past 12 years, the company has experienced a substantial decline in revenue, plummeting from Tk 5.8 billion in FY'11 to Tk 28 million in FY'23.
The company's profitability has similarly suffered. It posted a profit of Tk 298 million in FY'11 but saw a loss of Tk 97 million in FY'23.
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