South Korean carmaker, Hyundai, has announced its plans to manufacture vehicles in Bangladesh. The company will collaborate with the Bangladeshi conglomerate, PHP Group, to set up a plant in Chittagong, with the aim of producing cars by 2023.
A New Era For Bangladesh's Automobile Industry
The move marks a significant milestone for Bangladesh's automobile industry, which has been growing rapidly over the past few years. With a population of over 160 million, the country's market potential has not gone unnoticed by global automakers.
While the majority of vehicles currently sold in Bangladesh are imported, the government has been actively promoting local production to reduce dependence on foreign imports.
Hyundai's partnership with the PHP Group will not only bring in foreign investment but also provide job opportunities for locals, and create a new era for Bangladesh's automobile industry. This partnership is expected to spur further investment and development in the country's manufacturing sector.
An Ambitious Production Target
The joint venture between Hyundai and the PHP Group aims to produce up to 6,000 cars per year initially. The plant will manufacture sub-compact and compact cars to cater to the growing demand for affordable cars in Bangladesh.
While the company has not revealed which models will be produced in Bangladesh, it is expected that the cars will be tailored to the Bangladeshi market and the needs of the consumers.
Hyundai's Expansion In South Asia
Hyundai is no stranger to the South Asian market, with production plants already established in India and Pakistan. The company's entry into Bangladesh will further strengthen its position in the region and expand its reach in the fast-growing South Asian market.
The joint venture is also part of Hyundai's global strategy to diversify its manufacturing locations, reduce its reliance on China, and mitigate supply chain risks. The company has been exploring new production sites outside of China and has recently established plants in Indonesia and Vietnam.
Hyundai's decision to manufacture cars in Bangladesh is a significant development that will bring a new wave of investment, job opportunities, and technology to the country. With an ambitious production target and a growing market, this partnership between Hyundai and the PHP Group could be the start of a new era for the Bangladeshi automobile industry.
As the country aims to promote local production and reduce dependence on foreign imports, the joint venture is expected to drive further investment in Bangladesh's manufacturing sector, ultimately leading to a more diversified and robust economy.