Following the footprints of a number of Indian brands like Hero and Ashok Layland, Indian TVS would assemble its motorcycles in Bangladesh with a view to getting tax benefits and becoming more competitive in the market.
To assemble TVS-branded motorcycle in Bangladesh, TVS Auto Bangladesh would sign an agreement with state-owned Atlas Bangladesh Limited today.
An industry ministry media invitation said that a memorandum of understanding between TVS Auto Bangladesh and Atlas Bangladesh, also a listed company at the Dhaka Stock Exchange, would be signed on Thursday (today).
Under the MoU, Atlas Bangladesh would assemble motorcycles for TVS.
Atlas Bangladesh managing director Abul Kasem and TVS Auto Bangladesh chief executive officer Biplob Kumar Roy both admitted the fact.
None of them, however, agreed to disclose any further details.
Biplob Kumar Roy said he would like to disclose further details of the agreement on Thursday (today) as they were at the final stage of negotiation.
On the other hand, Abul Kasem said that he could not disclose anything about the agreement before it was signed as Atlas is a listed company.
Another Indian giant in the area of two-wheeler manufacturing, Hero MotoCorp which already sells its products in as many as 18 countries, has started manufacturing Hero-branded motorcycle in Bangladesh a couple of years ago.
Atlas Bangladesh assembled Hero-branded motorcycles for a period of time before Hero MotoCorp signed an agreement with Nitol Niloy Group in April, 2014 in this connection.
The state-owned entity is now manufacturing motorcycles for a Chinese brand.
IFAD Autos Limited, a leading automobile company in Bangladesh, in association with Ashok Leyland, Indian famous automobile company, set up a car assembling plant in Bangladesh in February, 2017.
Meanwhile, Japanese brand Honda has already set up its plant at the Abdul Monem Economic Zone in Munshiganj with the aim of starting production of motorcycles by this year.
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