Runner brings Bangladesh’s first 165cc motorcycles
Runner Automobiles appears to be on a roll. Hot on the heels of its announcement of bringing the famed off-road motorcycles of KTM to Bangladesh, it has now think of a new two-wheeler with the best engine displacement the united states has seen yet.
Called BOLT 165 R, the motorcycle includes a race-tuned 165cc engine, dual disc braking system, LED lights, inverted suspensions and digital speedometer, all under a Tk 169,000 price.
Launched in different outlets of the capital on Tuesday, the motorcycle has a Tk 14,000 discount if the payment is made in full, either in cash or through credit card.
Besides, customers may also enjoy a 24 months' equal instalment facility at only 1 per cent interest, the lowest in the market.
BOLT 165 R joins Runner's stable of motorcycles, whose engine capacity range from 80cc to 150cc. It also markets American brand UM and Italian brands Vespa and Aprilia.
Runner Automobiles, whose shares closed yesterday 2.63 % higher at Tk 50.2, started making motorcycles of 165cc to 500cc in late 2018 using a combo of imported parts and raw materials.
With a target to diversify the export volume, the business set about selling these motorcycles in Bhutan, Myanmar, India's northeastern states, Africa and the center East.
The Bangladeshi brand, which got listed in the stock market in 2019, has already gained popularity in Nepal within a very short period.
Just 2 yrs ago, Bangladesh was reliant on imports to meet 95 % of its demand for motorcycles.
However the situation has completely reversed: today, about 96 % of the two-wheelers plying on the roads are either locally made or assembled, according to the industry people.
Seven firms -- Japanese brands Honda, Suzuki and Yamaha, India's Bajaj, TVS and Hero, and Runner Automobiles of Bangladesh -- have made the united states almost self-sufficient in motorcycle manufacturing or assembly in the fast-growing market.
Operators now predict that the marketplace would grow manifold in the next two-three years because of rising income, the steady growth of the economy and favourable policy and tariff structure regardless of the pandemic hampering production in the last four months.
With its offer of cost efficiency and travel convenience through traffic-congested streets, the motorcycle market has been witnessing double-digit growth for the past several years.
The introduction of ride-sharing services in Dhaka, Chattogram, Sylhet and Cox's Bazar in recent years in addition has contributed to a growth in demand for motorbikes.
The market commenced to expand fast from fiscal 2016-17 when the government slashed the supplementary duty by 25 percentage points to 20 per cent on the import of the two-wheeler's components to encourage domestic manufacturing.
To improve the industry's growth further, the government has formulated the Motorcycle Industry Development Policy 2018.
It aims to take motorcycle production up to one million units by 2027 with half of them via local manufacturing and offer quality motorcycles to domestic and overseas markets at competitive prices.
Market insiders said about 5 lakh motorcycles were sold in fiscal 2018-19, up 25 per cent from 4 lakh a year earlier. This means almost 1,500 motorcycles are being purchased each day.
Assuming the cost of a motorbike is Tk 100,000 normally, total sales figure in monetary terms will be about Tk 5,000 crore, which is nearly equivalent to the marketplace size of four-wheelers.
"Continuation of concessionary duties on import of recycleables is helping the sector grow rapidly," Hafizur Rahman Khan, chairman of Runner Automobiles, the first local company that commenced manufacturing motorbikes in the united states more than a decade ago, told The Daily Star earlier.
This popular has encouraged market players to create either manufacturing facilities or assembling plants to lessen prices and also have a bigger share of the growing market.
However, the motorcycle makers' association continues to demand an 81 % cut in bike registration costs in next fiscal year's budget as the purchasing power of the general mass has seen a sharp fall due to the pandemic.
The registration cost of a motorcycle, including registration fees, road tax, supplementary duties and other charges, is approximately Tk 22,000 on the average, which is about 25 % of the price tag on a 100cc motorcycle, the best-selling engine capacity.
The association wants the cost to be fixed at Tk 4,000.
Moreover, motorcycle makers have urged the federal government to continue exempting VAT on sales of locally-made parts until 2027 to keep prices low as the purchasing power of people has seen a sharp fall because of Covid-19 pandemic.
The exemption provided by the Motorcycle Industry Development Policy 2018 is defined to expire in the outgoing fiscal year. At least 30 % of the components found in building motorcycles are made locally.
