Mitsubishi Motors, the Japanese carmaker that outsources auto production to state-owned auto assembly and parts manufacturer Pragoti Industries, is going to build an auto assembly plant in Bangladesh.
Mitsubishi and Pragoti’s parent organisation, the Bangladesh Steel and Engineering Corporation signed a memorandum of understanding on Thursday for a feasibility study on business opportunities to determine when to build the plant, the industries ministry said in a statement. The study will be completed by 2025.
In fiscal 2020, Mitsubishi sold 1,700 vehicles and produced 200 cars in the country.
There is currently limited demand for new cars in Bangladesh, where most people buy second hand. But it is said that Mitsubishi holds the biggest share of new car sales in the country, according to the report.
The Japanese carmaker is looking to expand its footprint in Bangladesh, as it expects the market to grow along with the economy.
Mitsubishi plans to market products developed for Southeast Asia to increase its sales in fast-growing parts of the world such as South Asia, Mexico, and Africa.
At present, the company has production bases in five countries in the Association of Southeast Asian Nations, including Thailand and Indonesia.
Mitsubishi has outsourced to Pragoti since 1977. Pragoti is currently building the Pajero Sport, a sport utility vehicle, and other models, but Mitsubishi currently has no plants in Bangladesh in which it holds an ownership stake.
The new plant will cater to growing auto demand in Bangladesh by expanding knockdown production, reported Nikkei.
The plant’s capacity, the amount of the investment and which models will be made there will be determined based on the Bangladeshi government’s support and incentives.
In fiscal 2020, Mitsubishi sold 1,700 vehicles and produced 200 cars in the country.
There is currently limited demand for new cars in Bangladesh, where most people buy second hand. But it is said that Mitsubishi holds the biggest share of new car sales in the country, according to the report.
The Japanese carmaker is looking to expand its footprint in Bangladesh, as it expects the market to grow along with the economy.
Mitsubishi plans to market products developed for Southeast Asia to increase its sales in fast-growing parts of the world such as South Asia, Mexico, and Africa.
At present, the company has production bases in five countries in the Association of Southeast Asian Nations, including Thailand and Indonesia.
