BARVIDA bats for market expansion before manufacturing car locally

Bangladesh Reconditioned Vehicles Importers and Dealers Association welcomed the “Automobile Industry Development Policy 2020” but they demanded expansion of the local car market before going to manufacture them locally.

“Government can get desired revenue by graduation to developing countries and expansion of the market to fulfil the huge demand of middle classes,” said BARVIDA president Abdul Haque while addressing a press conference at the organisation's office at Bijoynagar on Wednesday.

The organisation claimed that Bangladesh has 10,000 to 20,000 car sales every year. Japan International Cooperation Agency conducted a study, which revealed that a car manufacturing industry can sprout in a country if the local market size is over 1 lakh vehicle sales a year.

Abdul Haque said, “A realistic, forward-looking and implementable automobile policy is necessary so that the long-recognised reconditioned car import sector also will be stable beside ushering in the brand-new car manufacturing industry.”

“To cater to the demand, it is also necessary to rationalise the existing customs duty on new and reconditioned cars,” he added.

BARVIDA president said, before taking any policy to establish any kind of industry it is necessary to consider the existing condition of the related sector and experience of other countries reality. The reconditioned car sector has an important role in countries economy with an investment of a few thousand crore taka locally and creating direct and indirect employment, he said.

“Japanese reconditioned cars are the first choice of Bangladeshi customers because they are eco-friendly and has resale value. So, the BARVIDA leaders expressed their deep concern, there may be a screwdriver industry instead of ‘made in Bangladesh’ car industry,” he stated.

The president read out a written speech and said, 23,891 and 17,401 cars were imported in 2017 and 2018 respectively while the amount decreased to below 12,000.

The used car importers’ organisation also proposed a six-point demand for consideration in the upcoming budget.

The demands include year-wise depreciation, and supplementary custom duty rate, cancellation of supplementary custom duty on microbus import and drafting a policy on earning revenue from imported electric cars.

Among others, BARVIDA Secretary General Mohammad Shahidul Islam and Vice President Saiful Islam Samrat were in the press conference.