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Dhaka: The government has adopted a plan to stop the importation of reconditioned cars into the country. New cars will be added or manufactured in the country to meet demand.
However, importers of reconditioned cars have raised concerns about the government’s plan. They say that buyers should have the freedom to choose.
The government says that if new factories are established and imports of old cars stop, light engineering and back-link industries will develop along with the creation of new jobs in the country. To this end, the government has already drawn up a draft policy called ‘Automotive Industry Development Policy-2020’. It has been said that the import of reconditioned cars will stop in the next 6 years.
Leaders of the Bangladesh Refurbished Vehicle Importers and Dealers Association (Barvida), an association of car importers, said: “We want to build a car factory in the country.” But the freedom of choice of buyers must be taken into account.
Barvida leaders also made a proposal in this regard in a meeting with interested officials from the Ministry of Industries on Sunday.
The government says we have the ability to add new cars to the country. We will work with the latest technology in the world. Our huge market. We will meet the country’s demand and export. That is why we want to make cars. We have to start. Tarato (Barvida) has done it for many years. Although some businessmen are against it, it is important to do so in the interest of the country.
According to the draft policy of the Ministry of Industry, the Government of Bangladesh has drawn up the ‘Car Industry Development Policy-2020’, which proposes to gradually reduce the import of used cars to create a locally integrated car market. Therefore, the import of all kinds of reconditioned cars will stop within six years. Currently, cars up to five years old can be imported.
The proposal says that imports of cars older than three years will stop from the second year. After that, the import of reconditioned cars will stop completely in the sixth year.
The proposal says that a depreciation of more than 10 percent cannot be calculated on old cars to stimulate the integrated auto market in the country. The government will help people and organizations in various projects to buy integrated cars in the country.
In Bangladesh, Pragati Industries is officially incorporating cars designed by the Japanese company Mitsubishi. Also, a Chittagong-based company called PHP Motors is assembling Proton cars from Malaysia. At the same time, Indian Tata and Mahindra & Mahindra have also shown interest in setting up car assembly plants in Bangladesh.
In this regard, the Minister of Industries, Nurul Majid Mahmud Humayun, told banglanews: “We have decided in principle to make new cars in the country. The import of reconditioned cars will no longer be encouraged. Little by little they will go away. We have come a long way in the world. Reconditioned cars no longer work in the world. We are no longer at that stage. We also have the ability to build new cars. “
He said: “There is no place to store a damaged car. The job did nothing. Employment will start when we start building new cars. At the same time, the light engineering industry will develop, including outsourcing. There is no such thing as a barbed wire factory. They can’t even paint properly. “
When asked how he sees Barvida talking about large investments and jobs in the sector, he said: “There really is nothing (Barvida). There will be much more employment and investment when we build new cars. Other investors will invest here, including our progress.”
When asked if any barracks are being given a chance, the Minister of Industries said: “Without barracks, they (Barvida) have people as hostages. So I don’t want to give them another chance. Bangladesh is not a hostage to Barvida. They will arrive. new cars on the market. People will buy new cars instead of old ones. “
Barvida President Abdul Haque told banglanews: “We are not against car production, we welcome it. But after 2030, the world will switch to electric cars instead of diesel, where the government is thinking about diesel or gasoline cars. We request in a meeting with the Ministry of Industry, to work with the latest technology in a wide range. Besides, we will cooperate with them if they plan considering the needs of the people, the export market and the economy of the country. “
He said: “If the government thinks the importation of cars should be stopped, then it has not happened. Then there will be no competition in the market. We are in favor of full manufacturing. But many selfish neighborhoods have entered here.”
“If the government is thinking about the public interest, the country’s economy and the world market, then the elimination is not appropriate,” he said. Our market is not small. A couple of companies won’t be able to make that many cars. It is important to note that an established company should not be harmed during car production.
Abdul Haque said: “We have employment of thousands of people in this sector, about 5 billion rupees of income comes from here. The government has to think about what will happen after 20 years. No special court can be given a chance here. “
“If the government wants to export cars, it has to come up with a 100 percent export plan,” he said. We welcome. The internal market that we have built over the last 50 years may or may not expand. Because we want to compete. No organization can survive without competition. “
According to Bervida, there is a demand for 15,000 passenger cars in Bangladesh every year. Reconditioned cars satisfy 75 percent of that demand. The sector has an investment of 20,000 million Tk and employs 30,000 people.
Bangladesh mainly imports used cars from Japan. The depreciation facility is available for up to five years on these vehicles. These Japan-made cars are durable and popular with Bangladeshi people, even if they are old or used.
It can be mentioned that in the last financial year (2019-20), 12,502 reconditioned cars were imported into Bangladesh, of which the government earned revenue of Tk 1,456 crore.
Bangladesh time: 2050 hours, September 14, 2020
GCG / AJ
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