In Bangladesh, about 85 percent of cars imported are reconditioned vehicles from Japan. Statistics say that almost about roughly 20000 vehicles are imported every year by various importers where 18000 cars are reconditioned. Along with these numbers, the Bangladeshi vehicle sector generates revenue of 4000 crores, over a 5000 crore Taka market size. With all that, the government of Bangladesh has been thinking of imposing a ban on reconditioned vehicle import. Keep reading to find out why such a decision is being taken spontaneously.
To put this as simply as possible, Bangladesh is on the verge of manufacturing local cars, and thus, to promote more manufacturing by local companies, the government is banning vehicle imports. All this will start taking action in the next five years. Although, there are already cars being manufactured in Bangladesh where state-owned Pragati has been manufacturing Mitsubishis and PHP group manufactures the Proton Prevé, which is not enough. Bangladesh is trying to manufacture an independent car under a Bangladeshi local brand without any foreign help.
Having a Bangladeshi local brand represent our engineering brilliance is a matter of pride for the whole country. Since import taxes have always been extremely high, locally manufactured cars could be cheaper as there will be no extra import fees. After-sales service would be a breeze due to the availability of original spares straight from the manufacturers and to meet consumer demands, more companies will quickly come out with newer models to compete. But this is just a hypothetical thought. Does all this need a ban on vehicle import?
Bangladesh has been importing vehicles since the day the country has gained independence and it has been like that for almost 60 years now. The market has been home to more than 30000 employed citizens over hundreds of profitable businesses. All this could collapse if importing reconditioned vehicles get banned. Although banning imports might yield local companies to make more cars but it would not catalyze the process as the people would naturally want more choices. The revenue from the vehicle AIT contributes greatly to the country’s economy and with all that, the decision from the government is quite mind-boggling.
To promote local car manufacturing, banning imports altogether is not necessary. If the local cars are good enough and can provide equal if not, better service than imports, the locally manufactured cars will automatically replace imports. Also, banning imports for local a manufacturing boost is quite an intimidating move from the government and the companies might face the same faith when trying to export the “Made in Bangladesh” cars to somewhere else.