Nano Assembly Line Might be Set Up in Bangladesh to Keep Costs Low

Tata Nano, Tata Nano News | | February 14, 2012 at 6:22 PM



tata nano pearl white Nano Assembly Line Might be Set Up in Bangladesh to Keep Costs Low

Nitol group, the only distributor of the Tata Nano in Bangladesh had introduced the car in Bangladesh this February. Now they have started discussing the prospect of setting up an assembly line dedicated to the Nano in that country.

As Chairman of Nitol Group, Addul Matlub Ahmed puts it, “Bangladesh is a viable economy. We will grow very fast here. Therefore as soon as we introduce the vehicle, in two months we will have an idea about the market. Then we will start negotiating with Tata for the assembly plant”

He further added, “We are expecting to introduce Nano in Bangladesh sometime in February. We will import about 2,000 Nano cars in the first year for the Bangladesh market. We are importing all the models and will see the market response. Then we will finally decide on the import programme on the basis of demand. Our idea is to reach at least 10,000 a year in the next couple of years.”

Issue on price of the car had delayed the launch of the Nano in Bangladesh from October last year to February this year though pricing yet remains a major hurdle. High import duty has shot the price up to Tk 6.5 lakh or Rs. 3.8 lakh for the Nano which is supposed to be the common man’s car. Assembling the car in Bangladesh itself will help ease the price a bit.

“Definitely an assembly unit here will be cost effective. But we are not sure about the logistics part and the fresh investment required to make. We will have to do a lot of study,” said Ahmed.

Tata Motors is yet to comment on this though they have hinted on their own plans of making knock down kits (CKD) which they would export abroad for assembly there. However, specific details of this plan had not been discussed yet.

Export of fully assembled or completely built units (CBU) of the Nano had started last April to countries like Sri Lanka and Nepal. Up till November 2011, 1728 units of the Nano had been exported to these countries.

There are also plans for the Nano to be exported to countries like Thailand, Indonesia and Myanmar. An upgraded version may also be exported to the US and European markets.

There had been interest shown on the car by company like Teco Group of Taiwan. They have proposed to manufacture and sell the car in their own market.

 

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