Much smaller and less expensive Honda motorcycles and scooters are popular in crowded South West Asia.
Honda Motor Company today signed a joint venture agreement with Bangladesh Steel and Engineering Corporation (BSEC) to establish a motorcycle production and sales joint venture company before the end of 2012. The JV – 70% of its shares held by Honda, 30% by BSEC – will produce locally.
In Bangladesh, with a population of approximately 160 million, industry-wide motorcycle sales in 2011 were 180,000 units, an 11% increase compared to 2010. Steady growth of the market is expected to continue, according to Honda. In 2011, Honda motorcycle sales were more than 16 million, down from 18 million in 2011.
Since 1972, Honda motorcycle production and wholesales functions have remained under a technical collaboration agreement with Atlas Bangladesh Ltd., a BSEC subsidiary. When the new joint venture company begins operations, it will establish an operation with integrated production and sales functions under the basic Honda policy of “start small, grow big.”
The JV will also work with other Honda operations among Southwest Asian countries including India and Pakistan.
