Rancon Auto Industries Ltd launches Mitsubishi Xpander assembly in Bangladesh’s growing auto sector

Photo: Mitsubishi Bangladesh website

RANCON Auto Industries Limited (RAIL), an automotive assembly and manufacturing centre, is set for a full-scale rollout of the assembly of the Mitsubishi Xpander in June.

RAIL invited journalists for a detailed tour of the facility as company representatives outlined their vision to position Bangladesh as a future player in the regional automotive sector.

The move signals Bangladesh’s move towards self-reliant, standards-driven automotive manufacturing and marks the beginning of a new phase in domestic vehicle assembly and paintwork, according to a media statement.

RANCON officials have said that trial production is under way for two models: the Mitsubishi Xpander and the Proton X70.

Full-scale commercial rollout of both is expected to begin in June.

The Proton X70 is a five-seater, while the Mitsubishi Xpander is a seven-seater multipurpose vehicle (MPV), designed for both passengers and cargo.

The statement added that the 1,500cc Xpander is expected to deliver a fuel efficiency of 8 to 9 km/liter in urban conditions. All vehicles will come with a five-year warranty. Pricing details are yet to be announced.

“We now have the capacity to manufacture vehicles that meet Japanese standards,” said Mohammad Fahim Hossain, head of mMarketing for Rancon Automotive Division–1.

“Our production facility has been approved by Mitsubishi Motors Corporation for global-standard construction,” he added.

BUILDING A DOMESTIC INDUSTRY

Located on 23 hectares of land in Kashimpur, Gazipur, the Rancon Industrial Park includes three manufacturing units: RANCON Motorbike, RANCON Electronics, and RANCON Auto Industries with a combined workforce exceeding 800 people, the statement said.

The RAIL, established in 2017, houses units for painting, assembly, quality control, and warehousing, while technicians trained in Vietnam and Japan oversee operations using tools such as torque wrenches, pneumatic systems, and overhead cranes, it added.

RANCON Motorbike, established in 2014, assembles motorcycles of Suzuki. RANCON Electronics, launched in 2016, produces televisions and refrigerators from Toshiba, LG, and Samsung.

WORKFORCE AND SKILLS DEVELOPMENT

With 250 professionals currently employed, many of whom hold certifications from international automotive partners, RAIL trains them and their daily work contributes to the development of skills in emissions testing, diagnostics, and ADAS (Advanced Driver Assistance Systems) calibration, the statement said.

It added that for workers transitioning from traditional manufacturing sectors, RAIL offers new career pathways and training opportunities. In a country where garment exports dominate, automotive assembly introduces more technical roles and potential for industry diversification.

COSTS, POLICY AND MARKET ENTRY

Company officials estimate that the locally assembled Xpander will be priced about 20 percent lower than the imported version, depending on tax regulations, according to the statement.

Present import duties exceed 120 percent. A revised Statutory Regulatory Order (SRO) could reduce these rates, encouraging further local investment, it added.

“We’re not just focused on one model or brand,” said Md Badiuzzaman, Executive Director of RAIL. “By 2026, we aim to assemble four types of passenger cars and two types of commercial vehicles.”

TESTING AND QUALITY CONTROL

The facility includes a 2.5-kilometer test track with 16 driving conditions. Each vehicle undergoes tests for braking, emissions, alignment, and onboard diagnostics before market release.

“We don’t compromise on safety or standards,” said Fahim Hossain. “We want every vehicle that leaves here to be road-ready and reliable.”

RANCON aims to release 2,000 Mitsubishi Xpanders, 400 Proton X70s, 360 Mercedes buses, and 600 JAC trucks over the next 18 months, according to the officials.

While modest by global standards, these figures represent early progress in building domestic manufacturing capacity.

The broader goal is not just to assemble vehicles, but to contribute to skill development, infrastructure growth, and the diversification of Bangladesh’s industrial economy, the statement said.