Rangs to rev up car assembly

Image: Collected

Rangs Limited, a problem of Rangs Group, ideas to expand its line of locally assembled vehicles this year to tap into the spiralling demand for affordable personal cars from the growing middle-class.

Rangs offers been locally assembling Mitsubishi Outlander, a good crossover sport utility automobile (SUV) designed by Japan's Mitsubishi Motors, for more than three years now.

The country's top rated car marketer is now considering whether to introduce two more models to the domestic market.

"From the assembling's point of view, the prospect is very good," said Shoeb Ahmed, divisional director of Rangs Small.

Rangs, which distributes Mitsubishi cars, has up to now assembled a lot more than 200 SUVs which are actually in the market.

Rangs now really wants to assemble nearly 200 more SUVs found in 2021, according to Ahmed.

Three local firms -- Rangs Limited, state-run Pragoti Industries and Chattogram-based PHP Family group -- have already been assembling cars for the past several years.

Pragoti assembles Mitsubishi automobiles while PHP Motors manufactures cars made by Malaysia's Proton.

Recently, Fair Group said it is going to assemble cars made by Korea's Hyundai Motors.

The annual require for passenger vehicles is just about 25,000 units with reconditioned cars imported from Japan accounting for a majority of these sales.

Approximately, 22,000 reconditioned cars are imported every year.

However, the domestic industry for completely new cars is gradually growing while local assembly is beneficial regarding price reduction because of lower tariffs on totally knocked down (CKD) products.

"We are receiving the benefit of some benefit addition locally too," Ahmed stated, adding that Rangs assures quality and training to its workforce to develop technical skills.

"Now, we are able to do the full do the job of assembling with this efficient human resources. We hardly need assistance from anyone from abroad," he said.

But CKDs are an important part of the entire manufacturing process therefore, formulating the automobile policy would facilitate development in local manufacturing.

"Foreign manufacturers may think interested to come quickly to Bangladesh after the automobile insurance policy gets the nod from the federal government," Ahmed added.

When the policy is passed through the cabinet, the automobile manufacturers will then have an idea about the number of investment, expertise and technologies required to set up a successful project.

The auto industry is capital-intensive and it requires considerable time to build up the sector into a manufacturing hub.

Rangs to rev up car assembly

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