Locally Manufactured 375cc Motorcycles Allowed on Local roads

The development put an end to months-long speculation and confusion that started to escalate two years back when the Ministry of Industries started to award approvals for factories to locally manufacture up to 500cc motorcycles. The Government has decided to permit up to 375cc motorcycles on the local roads if they are manufactured locally, according to meeting minutes by the Ministry of Home Affairs. The meeting was held on 7 September headed by Home Minister Asaduzzaman Khan Kamal.

The minutes of the meeting have been sent to the government authorities concerned including the Ministry of Commerce, Ministry of Industries, Roads and Highways Department, Inspector General of Police, Trade and Tariff Commission, Road Transport Authority and Bangladesh Motorcycle Assemblers and Manufacturers Association (BMAMA). The development put an end to months-long speculation and confusion that started to escalate two years back when the Ministry of Industries started to award approvals for factories to locally manufacture up to 500cc motorcycles.

The decision was followed by the amendment in the Import Policy Order by the Ministry of Commerce that allowed the import of raw materials and parts for local manufacturing of up to 500 cc motorcycles, up from the prevailing limit of 165 cc. However, local manufacturing of higher cc motorcycles that is subject to comparatively bigger investments was yet to begin as the road permit was not guaranteed until the 7 September meeting.

"We appreciate the government nod that cleared many confusions to attract further investment in the motorcycle manufacturing industry," said Matiur Rahman, president of BMAMA and managing director and chairman of Uttara Motors.

Companies can now plan their investments and products," he added.

Uttara Motors, which manufactures the market-leading Bajaj Motorcycles in Bangladesh, is ready to manufacture the first batch of 250 cc Pulsar N in 45 days of receiving type approval for the new model from the BRTA. The company applied for the approval in early June this year.

Ifad Motors is going to manufacture Royal Enfield motorcycles at its Chattogram factory next year. Runner Automobiles, the motorcycle manufacturing pioneer in the country, has been exporting up to 500 cc bikes for years, as allowed by the government. The other brands are also analysing the possibility of launching higher cc motorcycles sooner.

However, some industry players expressed frustration over not allowing the locally assembled completely knocked-down imported units on the extended slab. According to them, it was financially risky to invest in manufacturing higher cc motorcycles before testing the market first. Some also expressed their frustration regarding the government's continuation of some restrictions on motorcycle engine capacity.

Source: The Business Standard