Intraco signs MoU with HM for marketing Ambassador car

FE Report Bangladeshi business conglomerate Intraco Group and prominent Indian car manufacturer Hindustan Motors (HM) signed a memorandum of understanding Saturday at a city hotel for marketing 'Ambassador' car in Bangladesh. The five-year marketing contract with Intraco has a target of selling 150 to 200 units per month at consumer level from two of its showrooms in Dhaka and Chittagong, Intraco sources said. "Our target is to introduce Ambassador as a taxicab brand. The government has a plan to buy about 5000 units from us next year," said Intraco sources. Industries Minister Dilip Barua attended the ceremony as the chief guest while Managing Director of Intraco Group Riyadh Ali, Managing Director of Hindustan Motors Manoj Jha, Acting High Commissioner of India in Dhaka Sanjay Bhattachariyya and First Vice President of Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) Jashim Uddin were also present on the occasion. A joint-venture assembling plant will be set up later in Savar within next two years with an investment of Tk 2.5 billion and with technical collaboration of HM as the demand goes up in Bangladesh. Initially 200 units will be assembled monthly and gradually the annual production target will be 5000 units. Asked how an Indian brand will compete in the reconditioned car market in Bangladesh which is already captured by strong Japanese brands, an Intraco official told the FE that the main attractions of Ambassador would be its price and the brand new car itself. "Also Ambassador car has diesel engine option which will be cost effective for the middle class people as the CNG price and the diesel price will be same in the country. Besides, there will be a after-sales service set-up of the real manufacturer which Japanese cars do not have." The price range of Ambassador cars will be Tk 1.35 million for 1500cc and Tk 2.25 million for 1800cc. Jashim Uddin said this is the right time for Bangladesh that foreign investors should invest jointly in setting up of automobile assembling plants enjoying the liberal industrial policy and business incentives offered by the Bangladesh government. "Car is no more a luxury item now for Bangladeshi people rather it's a necessity. Also an assembling plant will help flourish the backward linkage of automobile industry as it is a big industry," said Mr Jashim. Sanjay Bhattachariyya said it is a unique time for Indo-Bangla relation when the trade and business collaboration is taking place. "Both the countries have been able to maintain an economic boom amid the global economic depression indicating an enormous prospect for the two economies," said the high commissioner, "Setting up of an assembling plant will encourage many to follow suit and will change the complexion of the industrial sector with the automobile sector developed here," he added. He said this can be the torch bearer for the new phase of cooperation between the two countries. Dilip Barua said investors from across the globe are now interested in relocating their manufacturing units to Bangladesh, Thailand, Vietnam and India due to soaring production cost globally, even in China. "There are great potentials for joint ventures in Bangladesh," he said, adding "we can attain the technology of HM and this arrangement will generate more employment in this sector in the country." The minister expressed the hope that both the organisations would invent more new brands with affordable price offer.