TVS Motors to assemble vehicles in Bangladesh, ties up with state-owned co

This is the Indian auto firm's second manufacturing unit outside India, the first being in Indonesia

TVS Motors is planning to assemble vehicles in Bangladesh in partnership with state-owned Atlas Bangladesh Limited. Outside India, TVS Motor currently manufactures vehicles only in Indonesia, through which it caters to both domestic and international markets.

A TVS Motor spokesperson said that state-owned Atlas Bangladesh Limited planed to procure and assemble motorcycles from TVS Motor and other manufacturers for supply to certain government institutions. The material would be procured from TVS Auto Bangladesh, the distributors for TVS Motor Company. TVS Auto Bangladesh already operates the manufacturing facility for TVS Motor vehicles in Bangladesh and employs over 700 people directly and indirectly.

Atlas Bangladesh said a Corporate Partner Compromise Memorandum (MOU) was signed between Atlas Bangladesh Limited and TVS Auto Bangladesh Limited.

Under the agreement Atlas Bangladesh Ltd and TVS Auto Bangladesh Ltd will work for two years as corporate partners, and the former will assemble 15,000-20,000 units of TVS-branded motorcycles every year.

Apart from this, the two parties will also be signing an MoU soon, to produce important spare parts for Bangladesh Motorcycles, Atlas Bangladesh said.

Atlas Bangladesh Limited has access to government, semi-government, autonomous organisations, government procurement mechanisms (DPM) and open tender mode (OTM) motorcycle facilities. As a result of today's MoU, Atlas Bangladesh will be able to supply motorcycles directly to such entities.

Besides TVS, a number of Indian brands such as Hero and Ashok Leyland have started assembling vehicles of their brands in Bangladesh mainly to grab the tax incentives the country is giving for manufacturing products there.

Atlas Bangladesh assembled Hero-branded motorcycles for some time before Hero MotoCorp signed an agreement with Nitol Niloy Group in April 2014. The state-owned entity is now manufacturing motorcycles for a Chinese brand, the report added.