Country automobile assemblers and manufacturers have sought government's long-term policy support including rationalisation of existing tariff structure to help attract both local and foreign investment in the sector.
They also demanded of the government to provide necessary policy support for light engineering sector for the sake of ensuring their contributions to the local assembling and manufacturing industry.
"At present there is no policy for local spare parts and other components manufacturing sector," Vice President of Bangladesh Automobiles Assemblers and Manufacturers Association (BAAMA), Matiur Rahman said, Tuesday.
There is an urgent need for such policy to encourage assemblers and manufacturers of different mode of vehicles including bus, truck, car, microbus and motorcycle, he told the FE.
The automobile assemblers especially the motorcycle, are planning to enter manufacturing field by using locally produced spare parts, he said adding it would also help the local light engineering sector to flourish.
It would create a vast market opportunity for the local light engineering sector to make quality products and attract local and foreign investment, he said adding if assemblers get the required parts from the local market, it would save foreign currency and reduce import dependency.
"It will also help create employment," Mr Matiur Rahman who is also Chairman and Managing Director of Uttara Group of Companies, said.
But, the government needs to provide some benefits like import tax and duty waiver and incentive as provided to the manufacturers to encourage the light engineering sector to supply locally produced spare parts to the assemblers and manufacturers, Matiur Rahman added.
A win-win situation should be created for both manufacturers and suppliers so that the latter are encouraged while the former get the required products at a competitive rate.
To promote the assembling, manufacturing and the light engineering sectors, the government needs to adopt a comprehensive and long-term policy with prior consultation with all the stakeholders for protecting the interest of the sectors, he added.
"We need assurance of our investment as it requires large investment," he added.
"Moreover, we are in an uneven playing field due to the higher duty gaps between the local manufacturers and the importers," Matiur Rahman said.
He said entrepreneurs, tagged as manufacturers, are enjoying low duty facility compared to importers, which is unfair as the manufacturers are also importing most of the spare parts to produce the motorbikes.
Customers, however, do not get the benefits as they buy motorcycles from the local manufacturers at the same price that the assemblers offer.
"The duty and tax structure should be rational," he said.
When contacted, President of Bangladesh Engineering Industry Owners
Association Abdur Razzak also admitted that a comprehensive policy including a rational tariff structure is needed to help the light engineering sector.
"If market is ready, the sector can supply required quality products," he said adding the local market would be a big market for the sector which would also help generate employment.
He also said there are some complexities in supplying locally produced parts to the assemblers and manufacturers which must be resolved.
The BAAMA said the raw material procurement policy and technology transfer mechanism should be modified for the growth of the industry.
It also suggested vat exemption to encourage local vendors saying it would help flourish small linkage industries.
The BAAMA also demanded modification of the SRO 213 that made use of some spare parts for motorcycles mandatory.
The Association also requested the government to provide the same incentive to the local bus and trucks spare parts manufacturers to increase value addition and promote local manufacturing and sourcing.
Country\\\'s automobile makers, assemblers want policy support to attract investment
Monira Munni | Published: May 21, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
Share if you like