Home German Automobile Giant In Talks To Set Up Manufacturing Plant In Bangladesh
Automotive, News

German Automobile Giant In Talks To Set Up Manufacturing Plant In Bangladesh

Ali Raza

Mercedes Benz and BMW, two of the world’s largest producers of executive cars, are reportedly working on setting up an assembly plant in Bangladesh. A delegation from Germany visited Bangladesh for five days to look at the various investment options available to the companies.

The delegation from Germany met with Bangladeshi government officials and discussed the setting up of an assembly plant among other investment options. The officials representing the government of Bangladesh included Finance Minister, Mustafa Kamal, and members of the Bangladesh Investment Development Authority (BIDA). The German delegation later met with Bangladesh’s Prime Minister, Sheikh Hasina, on Thursday. These meetings are meant to speed up the investment negotiations between the German companies and Bangladesh.

Nabash Chandra, one of the executives of BIDA, said that they have started discussions with German investors, and they hope that the investment will be a Foreign Direct Investment (FDI). Chandra added that they are yet to confirm the exact amount of investment that will come through, but it will be a huge amount. This investment will be highly beneficial to the motor industry in Bangladesh.

Manufacturing of car parts

It is expected that the negotiations between the German delegation and Bangladeshi authorities will be concluded in the next few months. The talks are looking promising and a positive result is expected from the meetings. The delegation representing BMW and Mercedes Benz have been presented with an investment roadmap for Bangladesh, and they have been informed of the ease of doing business in the country.

If the negotiations are successful, the companies will set up a manufacturing plant for some car parts in the country. The rest of the parts which are not manufactured in Bangladesh will be imported from Germany. The ultimate aim is to build a car assembly plant in Bangladesh and enable the companies to produce new vehicles for the Bangladeshi market.

Kamal said that it is a move that will benefit Bangladesh because the country’s citizens will no longer need to import expensive cars. Bangladesh will also benefit from FDI and the jobs that will be created at the parts manufacturing plant.

Professor Mustafizur Rahman, a fellow at the Center for Policy Dialogue (CPD), said that having companies such as BMW and Mercedes Benz set up manufacturing plants in the country will help create positive branding for Bangladesh. This capital intensive investment endeavor would also encourage other big name companies to invest in Bangladesh.

Growing demand for vehicles in Bangladesh

The Bangladeshi market is one of the fastest growing in the world in terms of the demand for luxury vehicles. The Bangladesh Reconditioned Vehicles Importers and Dealers Association reported that close to 13,000 reconditioned cars were imported in the past year. If BMW and Mercedes Benz set up the plant in Bangladesh, there is a ready market for the products that will be produced.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission on real stocks

Rating

64 traders signed up today

Visit Now

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account

Ali Raza

Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.