Parts shortage, policy gaps limit Bangladesh's motorcycle export dreams
Industry leaders say the country still lacks the policy and industrial support needed to compete with established manufacturing hubs such as India.
Bangladesh's motorcycle industry has expanded rapidly over the past decade, with local factories now meeting almost all domestic demand and beginning to export to overseas markets.
However, industry leaders say the country still lacks the policy and industrial support needed to compete with established manufacturing hubs such as India.
Manufacturers argue that weaknesses in local component production, logistics and incentives are limiting the sector's export potential.
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Industry leaders said a motorcycle requires more than 700 components, but Bangladesh's light engineering sector currently produces only four major components locally – chain drives, seats, stands and batteries.
As a result, manufacturers remain heavily dependent on imported parts, making them vulnerable to global supply chain disruptions and increasing production costs.
Industry representatives say this dependence also reduces the competitiveness of Bangladeshi motorcycles in export markets.
Manufacturers say Bangladesh's regulatory framework and incentives are less favourable than those offered by competing countries.
"Because of delays in customs, bonded warehouses and ports, our operating costs rise considerably. Competing with Indian manufacturers under these conditions is extremely difficult," said Shah Muhammad Ashequr Rahman, chief marketing officer of Bangladesh Honda Private Limited.
He said India developed its motorcycle industry through tax incentives, easy access to bank financing and strong policy support, while also building a comprehensive backward linkage industry that allows manufacturers to source components locally.
Hafizur Rahman Khan, president of the Bangladesh Motorcycle Manufacturers and Exporters Association and chairman of Runner Automobiles, said the government should prioritise the development of a local motorcycle component industry.
He called for tax and VAT incentives, as well as easier access to bank financing, to encourage investment in parts and component manufacturing.
Industry leaders believe such measures would help reduce dependence on imports, lower production costs and strengthen Bangladesh's position as a potential motorcycle export hub.
