Transcript Navana_Saiful Islamx

Automotive (Light
Engineering) Sector
THE MARKET AND THE GROWTH POTENTIAL
Presentation By
Market Composition
Sourcing
Sales
After Sales
> Import
> New
> Spare Parts
> Manufacturing
> Used
> Service
Market Composition
Production
◦ 0% Manufacturing
◦ Assembly & Fabrication Mostly Bus,
Truck and 2 WheelersSales Value
Automobile Sales 2014
Vehicle Sales By Type
Comm
ercial
33%
Sales Qty
Large
9%
Assem
bly
50%
CBU
Impor
t
50%
Assembly
31%
Private
67%
Medium
20%
CBU
Import
69%
Small
71%
*Data Source BRTA 2014-15
Market size & Growth
BDT 188 Billion
in 2014
Automobile Business Types
Automobile Sales
◦ Sales Operation
◦ Assembly & Fabrication
◦ Manufacturing
After sales Service
Spare Parts
◦ Sales
◦ Production
Service
Spare Parts
Sales
6%
US$ 2.41Billion
26%
1.4% of GDP
68%
Estimation & Calculation based on BRTA data
Market size & Growth
REFLECTS THE GROWTH IN COMMERCE AND
INDUSTRY
PERSONAL VEHICLES ARE DISCOURAGED TO
REDUCE TRAFFIC CONGESTION
60000
50000
40000
30000
20000
10000
0
160000
140000
120000
100000
80000
60000
40000
20000
0
147%
58%
23%29%
150.00%
100.00%
35% 50.00%
0.00%
-2%
Year 2004
Year 2005
Year 2006
Year 2007
Year 2008
Year 2009
Year 2010
Year 2011
Year 2012
Year 2013
Year 2014
-31%
-2%-13%
-18%
Growth (%)
Commercial
-50.00%
Political
Turmoil
Effect
63%
80.00%
58%
21%
60.00%
40.00%
14%
16%
10% 20.00%
0.00%
-1%
-3%
-13%
-13%
Year 2004
Year 2005
Year 2006
Year 2007
Year 2008
Year 2009
Year 2010
Year 2011
Year 2012
Year 2013
Year 2014
200.00%
Growth (%)
Private
-20.00%
High Tax on
private
vehicles
Exports and FDI
Bangladesh is not exporting Automobiles as finished goods.
◦ However automobile components are being produced in Bangladesh by
foreign companies in EPZ for Export.
Our Vehicles are mostly imported from Japan and India.
◦ Cars & SUVs from Japan
◦ Commercial Vehicles and 2/3 Wheelers From India
◦ Korean, Chinese and Thailand made vehicle import is increasing in recent
years
Industry Growth Potential
GROWTH PROSPECT AND OPPORTUNITIES
Growth Potential
MOTOR VEHICLE PER 1000
PER CAPITA INCOME
*Data Source World bank
Growth Potential
The market has a suppressed Demand
of at least 200% of Current size.
It Will grow exponentially with GDP and
per capita income levels over the next
15 years.
Hundreds of Thousands Jobs will be
created for skilled and unskilled
manpower.
Technological growth of the country.
Challenges
◦ Lack of infrastructure
◦ Affordability
◦ Massive population concentration in
Capital
◦ Instability in policy
Opportunity Maximization
◦ Develop the Infrastructure to allow
more vehicles – Roads & Parking
Facilities
◦ Implement order on the road to
increase efficiency
◦ Awareness generation & Law
enforcement
◦ Overall Decentralization
◦ Mass Transit system development
◦ Reduction of interest rates to
increase affordability
◦ Produce Spare parts to ensure
backward & Forward integration
◦ When market size reaches
optimum condition
◦ Heavily invest in local production
◦ Market protection through
regulation
Business Opportunities
Financing for consumers
◦ Expand affordability
◦ Expand market size
Financing for parts Manufacturing
◦ Create backward linkage for production
◦ Meet local market needs for parts
◦ Export to producers abroad
GDP & Business
Job Market
Mobility
Financing for vehicle Manufacturing
◦ Vehicle production for Domestic use
◦ Vehicle export abroad taking advantage of
cheaper production costs in Bangladesh
Export
Just Need a Push to start
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