Chinese Companies Eye Indian Car-Electronic Market in Bangladesh
Three Chinese Companies Plan Joint Car Manufacturing in Bangladesh
China aims to penetrate India's car-electronic market in Bangladesh, with three companies seeking joint ventures for car manufacturing. Chinese firms, including Chery Automobile and Jianghuai Automobile Co Ltd, express interest in setting up factories. The move is seen as an alternative approach to accessing the Indian market amid restrictions.
Dhaka, 28 April : China's strategic interest in Bangladesh's car and electronic market, primarily serving India, has surfaced as three Chinese companies explore joint ventures to establish car manufacturing plants in Bangladesh. This move marks a significant shift in regional trade dynamics, potentially impacting existing trade relations between India and Bangladesh.
As per agency report, Chinese companies, including Chery Automobile, Jianghuai Automobile Co Ltd, and Foton Motors, are eyeing Bangladesh as a manufacturing hub, aiming to circumvent restrictions on exporting cars to India and investing in Indian electronics. The proposed joint ventures involve Bangladeshi companies such as Akiz Group and ACI Motors, indicating a growing trend of Chinese companies seeking collaboration in the region.
While the cars will be assembled in Bangladesh, all components will be manufactured in China, highlighting China's strategic intent to control the market through indirect means. The interest extends beyond cars, with Chinese companies exploring investments in lithium battery production, mobile manufacturing factories, and specialized vehicles.
A recent delegation from China, comprising 17 members of the Anhui Provincial People's Congress and representatives from the automobile sector, visited Bangladesh to explore investment opportunities. Meetings were held with the Bangladesh-China Chamber of Commerce and Industry (BCCCI), where discussions centered on investment in electric vehicle (EV) factories, truck manufacturing plants, and forklift production facilities.
Bangladeshi companies, including ACI Motors and Bangladesh Energy Pack, have shown interest in partnering with Chinese companies to establish production plants for electric buses, trucks, and specialized vehicles. The total investment in these ventures is estimated to be significant, with plans to invest Rs 500 crore in the coming years.
The Chinese delegation's visit also highlighted interest in Bangladesh's agro-processing industry and renewable energy sector, indicating a broader scope for future collaborations between the two countries. This move is perceived as mutually beneficial, enhancing commercial ties and opening new avenues for trade and investment.
