Tata plans assembly unit in Bangladesh

Indian homegrown automobile major Tata Motors is planning to set up an assembly plant for cars and other vehicles in Bangladesh during the current financial year, according to a report by Business Standard Motoring of India.

The plant is expected to produce about 50,000 vehicles annually that will cater to Bangladesh as well as markets like Myanmar.

The facility will bring down the cost of logistics and production.

The plant, meant to assemble completely knocked down (CKD) vehicles exported from India, will be set up in partnership with Nitol Motors, part of Bangladesh's Nitol Niloy Group.

Nitol Motors has been assembling Tata's commercial vehicles in Bangladesh since 1991 under a joint venture company.

Nitol Motors also happens to be the authorised distributor for Tata vehicles in the country.