Senior Correspondent, bdnews24.com
Published: 2018-01-11 20:34:57 BdST
The strong grounding is because of its “capacity, competence and geographical proximity” to Bangladesh, Harsh Vardhan Shringla added on Thursday at the launch of IFAD-TVS Partnership for Distribution of TVS Three Wheelers in Dhaka.
Bangladesh’s IFAD Group (IFAD Motors Ltd) tied up with the Indian TVS Motor Company for distribution of three wheelers (CNG/LPG/Diesel) manufactured by TVS Motor. The TVS Motor also launched its new three-wheeler ‘TVS King Deluxe’ at the event.
India is the sixth largest producer of automobiles in the world with an annual production of over 25 million vehicles and exports of around 3.5 million vehicles in 2016-17.
Automotive sector accounted for 7.1 percent of India’s GDP in 2016-17 financial year.
India boasts the largest three-wheeler industry globally with an average annual production of 870,000 vehicles and average annual exports of 350,000 vehicles.
High Commissioner Shringla said the Indian industry is also increasingly moving towards more environment-friendly vehicles with the adoption of Bharat Stage IV emission norms for three wheelers and the shift towards cleaner fuels like CNG and LPG from diesel.
The Indian government is also encouraging a switch to 100 percent electric vehicles in the country by 2030.
With rapid economic growth and improving road infrastructure, the demand for commercial and passenger vehicles including three wheelers in Bangladesh is growing rapidly.
Shringla said Bangladesh market has attracted the attention of a number of Indian automotive companies which are not only exporting to the country, but have also invested or are investing in setting up assembly or manufacturing plants here.
Ashok Leyland, in partnership with IFAD Group, opened a truck assembly plant in Dhamrai last year.
IFAD has also started utilising the Mongla Port for import of Ashok Leyland vehicles through the sea route under the Coastal Shipping Agreement between India and Bangladesh.
TVS Motor, a leading two-wheeler and three-wheeler manufacturer in India and the flagship company of the $7 billion TVS Group, is already one of the important players in the two-wheeler market in Bangladesh.
It has also been active in the three-wheeler market, and their partnership with IFAD Group will help them further penetrate this segment, the high commissioner said.
“This is another great example of the growing commercial relationship between our two countries,” Shringla said, as the bilateral trade has seen a spurt in the last few years.
“Companies from both India and Bangladesh are exploring new opportunities for investing and setting up joint ventures in each other’s country," he added.
Shipping Minister Shajahan Khan, IFAD Group Chairman Iftekhar Ahmed Tipu, and TVS Motor Company’s Senior Vice President R Dilip also spoke at the launching ceremony.