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The Japanese automobile giant will own 70 percent stake in the company, called Bangladesh Honda Private Limited, with the rest owned by Bangladesh Steel and Engineering Corporation, said BSEC director Mobarak Hossain.
The venture will assemble motorcycles at a rented facility from next year with the first year’s production target of 30,000 pieces, he told AFP, adding the parts would be imported from Honda plants in neighbouring nations.
“But our plan is to manufacture motorcycle engines and other key parts in Bangladesh in about five years’ time. We’ll move to a permanent factory after two years and then gradually we’ll increase production,” he said.
Sales of motorcycles have been booming in Bangladesh with the building of a road network that now connects almost every village and town.
Last year 107,927 motorcycles were sold in the country, with a yearly growth of 22 percent, according to the Bangladesh Road Transport Authority, which keeps the data on new vehicle sales.
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