Somen Dey
Session: 2014-15
Department of Management
In order to ensure sustainable growth/development of a country there
is no alternative way other than the industrialization. The government has also
declared that they would create all kinds of infrastructure at designated
places for the establishment of industries that could be availed by local and
foreign investors. The Bangladesh Economic Zones Authority (Beza) has been
selecting locations in different districts all over the country for special
economic zones where the rapid industrialization will be done in order to
ensure sustainable growth of the economy. Bangabandhu Industrial Park is an
industrial town being built on 30,000 acres of land by the river Feni. This
industrial city is being set up on the west side of Mirsarai. This industrial
park is expected to generate 1.5 million jobs.
One such industry which can play a
huge role in ensuring sustainable growth is automobile industry. Currently all
the automobile need of the country is fulfilled by importing cars from other
countries. Presently the country has almost 12 million people of the
medium-income generating affluent bracket and this segment of the population is
growing very fast - by 10 per cent a year. As all of the automobile needs are
fulfilled with the help of import, a large number of foreign exchange is spent
in that purpose. Importing automobiles requires paying import duties ranging
from 130 per cent to 850 per cent. This inevitably results in some consumers
not getting their desired vehicles within their affordability. Moreover, heavy
reliance of fossil fuels and the resulting carbon emissions are working against
the country's fight to adapt and mitigate the impacts of climate change.
Bangladesh Auto Industries Ltd. has recently declared that they will
take an initiative to manufacture Electric Vehicles (EVs). Bangladesh's
initiative to manufacture electric vehicles (EVs) is what present times require
and will broaden the economy. The large Chinese and Indian markets with duty-free
access for Bangladeshi products will be an added advantage soon, once the
sector thrives like that of apparel. If this project becomes a success the
manufacture and export of cars are about to unveil a new horizon for
Bangladesh.
The EVs are said to reduce fuel cost by up to 90 per cent and cut
down maintenance cost to 10 per cent only. With zero emissions its carbon
footprint is even lower. While electric vehicles made in Bangladesh are
expected to cost half that of current market prices, BAIL will ensure
after-sales service and spare parts. This guarantees resale of their vehicles,
an important factor for the Bangladeshi market which gives a lot of emphasis on
resale value.
Mir Masud Kabir, managing director of the BAIL, explained the
opportunities of manufacturing environment-friendly automobiles in Bangladesh
by leveraging on the fast-growing market and supportive government policies and
incentives.
While the BAIL is preparing to manufacture two, three and four
wheeler EVs, its sister concerns are gearing up to manufacture lithium-ion
batteries, motors, controllers and chargers. These are crucial components of
EVs. Thus, it is a 360-degree EV manufacturing ecosystem in development.
The question can be arisen as to why the BAIL has taken up such an
ambitious plan when this country lacks efficiency in many sectors. The answer
lies in the initiators of the BAIL having transformed the internet sector
earlier and now seeing the automobile sector as the next frontier with a lot of
promise and a success story for Bangladesh after apparel.
If this project becomes successful it will create new history in the
economic and industrial growth of the country. Because of this project,
Bangladesh can overcome their automobile needs domestically and it will save a
huge amount of foreign exchange. As every parts of the vehicle will be produced
locally, the cost of the vehicles will be much lower and because of that the
price of the vehicles will remain lower. As a result, the vehicles will be
affordable to middle class and lower middle class people of the country.
Now-a-days large number of people of our country earns their
livelihood with the help of apparel industry. As it is now the largest and
highly developed industry of the country. If the project becomes successful,
the automobile industry can become the next big thing in Bangladesh. And a
large number of jobs will be created in this sector and it can eradicate/reduce
the unemployment problem of the country.
Thus this industry will be able to play a big role in the overall
economic development of the country in various ways. The formation of National
Skills Development Authority (NSDA) is a possible answer. However, the NSDA
should prepare plans not only for the human resource just entering the job
market but also those intending to make a switch over apprehensions their
existing sector might come to be abandoned eventually.
Besides, we need to build a skilled manpower by ensuring proper
education and providing all the technological knowledge to them in order to
make them suitable to become an asset for this sector.
A country’s economic development largely depends on the
diversification of the industries in the country. In order to become one of the
developed countries Bangladesh needs to diversify their industrial sector. If
everything goes according to plan and this project becomes a success the
automobile industry of Bangladesh can be another big industry of Bangladesh and
like apparel industry, Bangladesh can become a market leader of this sector as
well. Proper policies and implementations of the policies and appointment of
skilled manpower in this sector is a must in order to make this project a
success.
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