Yamaha bikes to be built here from next year

[Black_cats]

12:00 AM, May 12, 2019 / LAST MODIFIED: 08:51 AM, May 12, 2019
Yamaha bikes to be built here from next year

ACI Motors starts assembly

https://www.thedailystar.net/business/news/yamaha-bikes-be-built-here-next-year-1742338

Salman F Rahman, the prime minister’s private industry and investment adviser, attends a launching ceremony of ACI Motors’ assembly plant for Yamaha motorcycles at the Le Méridien Dhaka yesterday. Photo: Star

Salman F Rahman, the prime minister’s private industry and investment adviser, attends a launching ceremony of ACI Motors’ assembly plant for Yamaha motorcycles at the Le Méridien Dhaka yesterday. Photo: Star

Star Business Report

Yamaha motorcycles will be manufactured in Bangladesh starting next year, a move which the initiators say will offer competitive prices to bikers.

It will take up the rest of this year to set up the manufacturing operations, said FH Ansarey, managing director of ACI Motors, a joint initiative of ACI Limited and Yamaha Motor Corporation bringing the Japanese brand’s two-wheelers.

Ansarey’s comment came at a launching ceremony in Le Méridien Dhaka yesterday for ACI Motors’ assembly plant for completely knocked-down kits at Sreepur in Gazipur.

Sitting on 6 acres of land, the plant took about Tk 100 crore to build and has an annual assembling target of 60,000 motorcycles.

Two models will now be assembled at the plant, said Subrata Ranjan Das, executive director of ACI Motors, adding, “Already their price has gone down in the local market.”

Inaugurating the plant as chief guest, Salman F Rahman, the prime minister’s private industry and investment advisor, termed it a milestone.

“...in a sense that two very successful and professional companies, one from Bangladesh and one from Japan, got together in a joint venture to assemble the world-class bikes,” he said.

The government wants to facilitate initiatives taken up by investors so as to increase production, he added.

“Bangladesh Investment Development Authority (Bida) should create an environment using which any project can be implemented automatically and in a simple way,” said Rahman.

He also hoped that Bangladesh will do good in World Bank Group’s ease of doing business index, going up to 125 from this year’s ranking of 176.

There has been significant progress in many areas with the full co-operation of Bida and other government agencies, he said.

Within the next two to three weeks, entrepreneurs will be able to complete registration formalities of the Registrar of Joint Stock Companies and Firms online, said Rahman.

Aminul Islam, executive chairman of Bida, said Bangladesh needed to look beyond the RMG sector should it want to graduate to a higher middle-income country.

Motorcycle assembly is such a step, he said, adding that the inaugurated plant would be a lesson for other world-class companies to engage in tie-ups with Bangladeshi companies to manufacture their products in the country.

On assembling motorcycles in Bangladesh, Yasutaka Suzuki, executive general manager of Yamaha Motor Corporation, said they put focus on customers’ confidence and never compromise on quality.

Last year 5.37 million Yamaha motorcycles were sold, he said, adding that Asia was a big market, especially Bangladesh, for its huge young generation. “So we agreed to set the plant here to provide them bikes at a fair price,” said Suzuki.

M Anis Ud Dowla, chairman of ACI Group, said the government has made a supportive assembling policy for the private sector. “It needs to remain consistent for a period,” he said. Arif Dowla, the group’s managing director, also spoke at the event.

 

[TopCat]

Thats exactly what we need. Local firm own 100% ownership and investment. So the wealth generated by the company and consumer will remain in the country and subject to further investment. And thats how technology is transferred and not through 100% FDI. We are doing the same thing with SAMSUNG.
@bluesky

 

[bluesky]

Thats exactly what we need. Local firm own 100% ownership and investment. So the wealth generated by the company and consumer will remain in the country and subject to further investment. And thats how technology is transferred and not through 100% FDI. We are doing the same thing with SAMSUNG.
@bluesky

I personally welcome YAMAHA Motors' assembling plant. It is also a piece of welcome news that a local company will own 100% stake and the Japanese company will supply the finished parts and components.

However, I think your stand on FDI is not correct. FDI guys do not earn 200 Taka by producing 100 Taka goods. Any company's net profit may not surpass even 5% and it does not hurt the local economy only because thousands of local people are employed and their earnings are circulated among the populace that causes the economic activities to rise and thus the GDP.

We should welcome all kinds of investments, local or FDIs. How do you think about this?

 

[TopCat]

I personally welcome YAMAHA Motors' assembling plant. It is also a piece of welcome news that a local company will own 100% stake and the Japanese company will supply the finished parts and components.

However, I think your stand on FDI is not correct. FDI guys do not earn 200 Taka by producing 100 Taka goods. Any company's net profit may not surpass even 5% and it does not hurt the local economy only because thousands of local people are employed and their earnings are circulated among the populace that causes the economic activities to rise and thus the GDP.

We should welcome all kinds of investments, local or FDIs. How do you think about this?

I am not against FDI that I already made clear. But wholesale FDI like Vietnam where local efforts were completely wiped out is not what you should want. We can still take 3 times of what FDI we get with the current size of economy. 5-10 billion is what is healthy.

 

[Sugarcane]

Thats exactly what we need. Local firm own 100% ownership and investment. So the wealth generated by the company and consumer will remain in the country and subject to further investment. And thats how technology is transferred and not through 100% FDI. We are doing the same thing with SAMSUNG.
@bluesky

If Yamaha don't have any share in this joint venture then they will be already making maximum profits from CKDs, license fees and royalty. So, it's not all the wealth will remain in country, without shares or higher license & royalties there will be no incentives for Yamaha to transfer technology.

 

[TopCat]

If Yamaha don't have any share in this joint venture then they will be already making maximum profits from CKDs, license fees and royalty. So, it's not all the wealth will remain in country, without shares or higher license & royalties there will be no incentives for Yamaha to transfer technology.

Well what is the deal between two companies are unknown. But the control remain with the local company.. They have nowhere to go but to stay with Bangladesh even in rainy season. They learn and if Yamaha some day want to wrap up the local will carry on with some other brand.

 

[ghost250]

we want higher cc bikes...not those shitty 150cc fi engine bikes.....

 

[Sugarcane]

Well what is the deal between two companies are unknown. But the control remain with the local company.. They have nowhere to go but to stay with Bangladesh even in rainy season. They learn and if Yamaha some day want to wrap up the local will carry on with some other brand.

Yamaha will not go anywhere when they can sell CKDs, earn license fees and royalties. If Bangladeshis don't want to end up being looted by Japanese like Pakistanis, then they shouldn't try to protect local assemblers.

 

[TopCat]

Yamaha will not go anywhere when they can sell CKDs, earn license fees and royalties. If Bangladeshis don't want to end up being looted by Japanese like Pakistanis, then they shouldn't try to protect local assemblers.

Honda left once when they tied up with Hero in India. Hero learned the techs and kicked them out. Honda is back now.
There is probably a difference between PK and BD. Foreign brands are entering Bangladesh when BD brands are doing good in local market. For instance bikes factories are set up by local brands first and they have a strong market share already.

 

[Sugarcane]

Honda left once when they tied up with Hero in India. Hero learned the techs and kicked them out. Honda is back now.
There is probably a difference between PK and BD. Foreign brands are entering Bangladesh when BD brands are doing good in local market. For instance bikes factories are set up by local brands first and they have a strong market share already.

India did good and established capacity to produce parts and engines locally, so now they can produce themselves. If I am not wrong, other local players are also importing CKDs and assembling like local brands in Pakistan. Although these local brands have broken the monopoly of Honda, Suzuki & Yamaha but still Pakistanis are paying lot more for junk because of custom duty and tax regime adopted to protect local assembler.

 

[TopCat]

India did good and established capacity to produce parts and engines locally, so now they can produce themselves. If I am not wrong, other local players are also importing CKDs and assembling like local brands in Pakistan. Although these local brands have broken the monopoly of Honda, Suzuki & Yamaha but still Pakistanis are paying lot more for junk because of custom duty and tax regime adopted to protect local assembler.

BD's local production is encouraging. BD is only few countries which produces compressor for AC and freezer which we used to import from Japan before. It takes time to build up capacity.

 

[bluesky]

I am not against FDI that I already made clear. But wholesale FDI like Vietnam where local efforts were completely wiped out is not what you should want. We can still take 3 times of what FDI we get with the current size of economy. 5-10 billion is what is healthy.

FDIs do not hurt our own initiatives. BD people are inept in doing R&D on mechanical or electrical products, and there are millions of these products throughout the world. So, when a BD local wants to invest in a technology factory, he has to import the machines at a high price. Without so much of investment money in dollar, it is difficult to properly industrialize in such a situation. On the contrary, FDI companies come with their readily available technologies, machines, know-how, experience as well as market.

So, it does not hurt the country if the FDI guys come and invest. However, I must say, no country has ever industrially developed with just FDI and without a big effort by the local entrepreneurs and investments. However, FDI works as a catalyst for further industrial development. FDI factories start with the imported CKD parts. But, gradually, they switch to locally produced components once the local people show aptitude at producing goods as per the FDI specifications.

This is how new factories are built, industrialization progresses, and many millions of people gets productive employment. However, you will be surprised to know that in a xenophobic Japan, the FDI presence is almost nil. However, the Japanese sacrificed their personal/family lives and worked very hard to do R&D and build up local technologies that propelled them to a top economy.

I believe BD people cannot just emulate the Japanese. So, FDI will help it to quick-start industrial development.

 

[mb444]

However, you will be surprised to know that in a xenophobic Japan, the FDI presence is almost nil. However, the Japanese sacrificed their personal/family lives and worked very hard to do R&D and build up local technologies that propelled them to a top economy.

Are you taking the piss.....japan has no FDI and did it all by themselves.....they had 30 years of massive FDI from the US to build them up post WW2 as well as being granted free access to western markets and technology. They were spoon feed and given a lot of assistance.

Some of here as picked up a book in their time mate.

The reason for low FDI in japan is because its economy has been stuck in a 20+ year of stagflation with a negative interest rate..... its an investment black hole...

Japan is not a country worth emulating..... we need to look more at the china model.

 

[bluesky]

Are you taking the piss.....japan has no FDI and did it all by themselves.....they had 30 years of massive FDI from the US to build them up post WW2 as well as being granted free access to western markets and technology. They were spoon feed and given a lot of assistance.

Mind your language. You have no right to use insulting language all the time. Learn more about the Japanese economic history before you again rant, stupid ignorant b*stard!! Next time I will just k*ck your monkey ***, idiot, the great!! When did I say Japan has NO FDI? I said it is almost nil, and why should this make you soooo angry, bloody Gadha ka Awlad!!

What I said about Japan is true. Go back to its economic history since the 1860s. Off course, it did everything by its own effort and money and not by FDI which was not existing in the 1860s and throughout the last Century. An ignorant like you are not supposed to know that FDI came into the picture a decade after WWll. Bloody ignorant cheap talking guy!!!

You are just like another Streetman who knows no difference between knowledge and ignorance. You have an English comprehensive problem. Learn English and learn about the economic progress of Japan.

 

[Neptune_]

we want higher cc bikes...not those shitty 150cc fi engine bikes.....

Lower cc bikes r perfect for our jam packed city. Big sized powerful bikes aren't suitable for city ridding.