Tata to launch two new models a year in Bangladesh

India’s biggest carmaker Tata Motors says it will introduce two new models in Bangladesh as well as other markets.

Nitol Motors, Tata Motors’ distributor for 25 years, launched the car ‘Nano’ in Bangladesh on Wednesday.

Johnny Oommen, Tata’s Head of International Business, who came to Dhaka to join the event, believed people in Bangladesh were able to spend more since the economy had been showing steady progress.

“Bangladesh is going ahead economically. More than 6 percent growth was achieved in the past several years. Per capita has been rising too,” he told bdnews24.com in between the launching event at Ruposhi Bangla on Wednesday.

A host of new sectors have been showing corporate culture, Oommen said. “That’s creating new demands. We might introduce another new brand here this year if possible.”

“Eight new car models were introduced last year. We’ll launch two new models every year until 2012,” Ranjit Yadav, President of Tata Motors’ Passenger Vehicle Business Unit, said during in an event in New Delhi to introduce the Sedan Zest on Wednesday.

Meanwhile, Oommen in Dhaka said Tata was not considering appointing new distributors in Bangladesh.

“Nitol Motors has been our partner in Bangladesh for almost 25 years. We’re not thinking about any other distribution channels for now.”

It will be selling 624cc Nano Twist at Tk 700,000 until Friday as a special promotional price and at TK 800,000 later on.

Tata tops the Indian market for heavy vehicles such as trucks, lorry and buses but falls behind local competitors Maruti, Mahindra & Mahindra and foreign companies like Hyundai and Honda when it comes to private cars.

It currently holds the fifth spot on that list.

Tata launched the much-hyped Nano in 2009 but some of them caught fire which charred its image.

Analysts say the Nano has failed to grab the attention of Indian consumers who are looking to buy their first cars.

Its Gujarat factory capable of producing 250,000 Nanos never went into full production after what was touted as the world’s cheapest car failed in the market.

Only 21,129 were sold during 2013-14, which was less than half of what was sold in the previous year.

A total of 120,000 were sold in India and 6,000 in Nepal and Sri Lanka combined.

Commerce Minister Tofail Ahmed and top government officials who visited the event advised Tata Motors to make Nanos in Bangladesh.

“We’re not thinking about assembling here. But we can do it if the demand for Nanos here is 10,000 to 15,000 per year,” said Oommen.

“Bangladesh is mainly a market for old cars. The highest demand for new cars here is 20,000 a year. So this will take time.”

Tata sales target for Nanos in this market was 2,500 to 3,000 per year.

“We plan to sell 200 to 250 cars per month.”

“But these plans are depending on Bangladesh’s policy on import duty. Prices of new cars can’t be made attractive because of the current policy for importers.”

At the launch in Bangladesh on Wednesday, Tata and Nitol Motors urged the government to withdraw the supplementary duty on import of cars under 700cc.

But minister Tofail Ahmed called on the entrepreneurs to manufacture cars in Bangladesh instead of importing them.

Now importers have to pay 45 percent supplementary duty on cars under 700cc engine.