The Bangladeshi government has recently granted approval for the introduction of motorcycles with engine capacities of up to 350 cc into the local market. This decision marks a significant shift from the previous restriction on motorcycles with engine capacities exceeding 165 cc. Taskeen Ahmed, vice chairman of IFAD Group, announced that the Ministry of Home Affairs gave its final approval for this change.
IFAD Group is preparing to launch its 350 cc Royal Enfield motorcycle in the domestic market, with an anticipated release in June of the following year. Following the domestic launch, the company plans to export the product to the international market.
Taskeen Ahmed disclosed that IFAD Group had worked closely with Royal Enfield to persuade the government to raise the motorcycle engine capacity limits in the country. While the Ministry of Industry had previously approved initial production in 2021, security concerns had prevented local market sales. Now, with clearance from the Ministry of Home Affairs, the company can proceed with its plans.
Previously, there had been no avenue for introducing motorcycles with engine capacities exceeding 165 cc in Bangladesh. This policy change not only benefits IFAD’s Royal Enfield but also opens doors for other high cc motorcycle manufacturers to enter the local market.
IFAD Motors is currently in the process of establishing a motorcycle factory in Chauddagram upazila of Cumilla to manufacture Royal Enfield bikes with 350cc and larger engines.
Dr. FH Ansarey, the managing director of ACI Motors, the sole distributor and manufacturing partner of Yamaha Motor in Bangladesh, welcomed the decision, emphasizing that higher cc motorcycles contribute to safety and infrastructure development in the country. He expects increased motorcycle sales and new investments in the sector as a result of the policy change.
However, it’s worth noting that the Bangladesh Motorcycle Assemblers and Manufacturers Association (BMAMA) had actively opposed the government’s decision, arguing that it could disrupt the market and negatively impact existing manufacturers who had invested significant capital under the previous policy constraints. The Ministry of Industries conveyed these opposing arguments to the Ministry of Commerce, responsible for import policy formulation and modification.
To address these concerns, the Bangladesh Trade and Tariff Commission proposed imposing additional registration fees for higher-capacity motorcycles, similar to those applied to cars.
Bangladesh has already attracted substantial investments in the motorcycle industry, resulting in a one-third reduction in motorcycle prices since the government introduced policy benefits for local manufacturing four years ago. Annual motorcycle sales have also increased significantly, crossing five lakh units.
Biplob Kumar Roy, the General Secretary of the Bangladesh Motorcycle Assemblers and Manufacturers’ Association and CEO of TVS Auto Bangladesh, suggested that the first higher cc motorcycles might hit local roads in January next year, depending on necessary changes in the import policy order. He anticipates healthy competition among brands in the higher cc motorcycle market segment.
Notable motorcycle brands in Bangladesh’s market include Indian brands like Bajaj, Hero, and TVS, Japanese brands like Suzuki, Yamaha, and Honda, as well as local brand Runner. As traffic congestion rises and ride-sharing becomes more popular, the demand for motorcycles in Bangladesh continues to increase.
Report and information: The Business Standard
