Eicher trucks, buses to be assembled in Bangladesh

Eicher Trucks and Buses, an unit of VE Commercial Vehicles, which is a joint venture of Eicher Motors and the Volvo Group, will set up an assembly plant in Bangladesh in collaboration with Runner Motors

August 28, 2018

With a capacity to roll out up to 500 units each month and spread across 35 acres, the plant will be equipped with new production and testing technologies

Initially, Eicher trucks and buses will be assembled at the plant. Gradually, Runner will add value and then head towards manufacturing of commercial vehicles

Eicher has launched over 25 new models in Bangladesh in the past three years. The Delhi-based company’s sales have grown four-fold in the last five years

Total Indian investment proposals in Bangladesh registered with the Bangladesh Investment Development Authority (BIDA) has exceeded US$3 billion

Eicher Trucks and Buses, an unit of VE Commercial Vehicles Ltd, which is a joint venture of Eicher Motors Ltd and the Volvo Group, will set up a vehicle assembly plant in Bangladesh. Eicher said on August 28 said that the new facility, being set up in collaboration with local vehicle manufacturer Runner Motors Ltd, was a part of the company’s plan to expand market in commercial transportation in Bangladesh. The plant spread across 35 acres will be operational next year. Eicher, the parent company of Royal Enfield, is one of the largest commercial vehicle manufacturers in India.

 

With a capacity to roll out up to 500 units each month, the plant will be equipped with new production and testing technologies. Under the deal, initially, Eicher trucks and buses will be assembled at the plant. Gradually, Runner will add value like welding and painting to the vehicles and head towards manufacturing of commercial vehicles in the future. Eicher has launched over 25 new models in Bangladesh in the past three years. Eicher’s sales have grown four-fold in the last five years. With the new plant, the company hopes to significantly improve its market in the fast-growing economy.

 

Meanwhile, Runner Motors has invested in a school for Eicher trucks and buses to train technicians within Bangladesh to improve after sale services in the nation. Eicher Trucks and Buses has been present in Bangladesh since 1993 and in the last few years has significantly expanded the distribution network through partnership with Rangs Motors and Runner Motors. According to a 2017 report by the Board of Investment Bangladesh, local demand was estimated at around US$2.5 billion. Bilateral trade has grown to US$9.1 billion in financial year 2017-18 from US$7.1 billion in 2014-15.

 

Meanwhile, total Indian investment proposals in Bangladesh registered with the Bangladesh Investment Development Authority (BIDA) has exceeded US$3 billion.

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