UAE-based Bangladeshi auto parts traders and auto service providers are planning to invest in setting up a number of parts manufacturing plants in Bangladesh’s fast-growing $4.42 billion automotive industry.
They expressed the desire to set up auto parts manufacturing plants in Bangladesh at a recent meeting with the leaders of Bangladesh Automobiles Assemblers and Manufacturers Association (BAAMA), led by Mr. Abdul Matlub Ahmad, President of BAAMA and Mr. Mohammad Ali Deen, General-Secretary of BAAMA.
According to reports, non-resident Bangladeshis own more than 5,000 businesses in the auto service and trading sector spread across some of the key industrial areas, such as Musaffah Industrial Area in Abu Dhabi, Al Ain Industrial Area, Sharjah Industrial Area, Ajman Industrial Area as well as in certain areas of Dubai, Fujairah, Umm Al Quwain and Ras Al Khaimah.
The annual automobile market in Bangladesh is around $2.35 billion while the annual parts and components market is estimated to be more than $2.05 billion, reports say. More than 4.7 million vehicles are currently registered in Bangladesh of which more than 60 percent are Japanese brands while Indian brands represent 25 percent.
“The automobile industry is going to be the next big contributor to Bangladesh’s economy if we can attract foreign investment in the automobile component and parts industry, which we currently import for our manufacturing plants. The industry is currently catering to the domestic market. However, if we could develop the industry properly, Bangladesh could become a major automobile exporter to the rest of the world, the same way we developed the ready-made garments industry.”
UAE-based Bangladeshi auto traders said they are in a unique position to market Made in Bangladesh auto parts in the UAE market that will help the Bangladeshi parts manufacturers expand in the GCC markets.
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