Meghna Automobiles, the automotive division of Meghna Group, has recently started selling three locally assembled sport utility vehicles (SUVs) from South Korean manufacturer KIA. An official launch event for these vehicles is set to take place soon.
The models include the 1,500cc Seltos, 1,500cc Carens, and 2,000cc Sportage, as announced by Anisuzzaman Choudhury, executive director of Meghna Automobiles. The Seltos and Carens were previously showcased at the Dhaka Motor Show in May.
Choudhury confirmed that Meghna Automobiles has obtained type certification for these vehicles from the Bangladesh Road Transport Authority (BRTA), a necessary requirement for locally assembled cars to enter the market. “We are now ready to officially launch the vehicles. Our goal is to provide brand-new passenger cars at a price lower than imported options,” he stated.
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The assembly plant for Completely Knocked Down (CKD) vehicles was established on 15 acres of land in Barmi Union, Gazipur, at a cost of Tk 275 crore (approximately $25 million). The locally assembled Seltos is priced around Tk 43 lakh, compared to Tk 52 lakh for the imported Completely Built-Up (CBU) version. Similarly, the locally assembled Sportage costs Tk 58 lakh, while the CBU unit is priced at Tk 78 lakh.
Choudhury noted that prices for brand-new locally assembled cars are anticipated to be Tk 10-12 lakh lower than their CBU counterparts. However, the recent depreciation of the Bangladeshi Taka against the US Dollar has limited the price reduction to Tk 8 lakh per unit.
He added that lower customs duties on imported components, as outlined in Bangladesh’s automobile policy, contribute to the affordability of locally assembled vehicles. To ensure quality, Korean engineers and technicians will oversee operations at the Gazipur assembly plant for the first two years, allowing local engineers and technicians to enhance their skills during this period.
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Currently, major automobile manufacturers such as Hyundai, Proton, and Mitsubishi are assembling cars in Bangladesh. Market experts indicate that imported reconditioned Japanese cars dominate the local market, with brand-new vehicles holding around 18% of the market share.
Choudhury expressed optimism that the market for brand-new cars will grow significantly by 2030 as consumer awareness and purchasing power increase. He emphasized that customers purchasing new vehicles will not need to renew their fitness certificates for the first five years, unlike the annual renewal required for reconditioned cars.
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According to BRTA data, approximately 22,000 to 24,000 passenger vehicles have been sold annually in Bangladesh since 2014. Choudhury mentioned that KIA and Meghna Automobiles decided to assemble cars in Bangladesh in response to the rising demand for new vehicles, specifically focusing on SUVs to capitalize on this growing market.
Meghna Automobiles has the capacity to assemble 7,000 cars per year but will initially assemble 3,500 units. Additionally, the company plans to ensure the availability of spare parts and establish sufficient service centers throughout the country.
