Thursday, November 17, 2011

"The rules should be more relaxed in Bangladesh."

Bangladesh importers scramble for older cars

DHAKA, June 17 (Reuters) - Bangladeshi car importers have urged the country's army-backed interim government to allow older vehicles in to keep them affordable to buyers, the head of the vehicle importers' association said on Sunday.

Currently they can import cars already used for four years. "But we urged the government to allow us bring in cars used for six years or more, which will lower costs by up to 40 percent," said Abdul Haque, president of Bangladesh Reconditioned Vehicles Importers and Dealers' Association.

He also urged the government to waive an up to 350 percent supplementary duty proposed on the import of microbuses, which comprise 15 percent of all used vehicles imported in Bangladesh every year.

The exorbitantly high tariff on microbus was proposed by the government's finance adviser Mirza Azizul Islam when he unveiled a $12.6 billion annual budget for 2007/08 fiscal earlier this month.

Islam, however, proposed to cut import duty on other used cars from 89 percent to 78 percent, which the importers felt was still high.

The high tariff, soaring fuel prices and an age cap on import of old cars would shrink the business and reduce the number of domestic buyers, Haque told Reuters.

He said he believed the government would reconsider their proposals before the new budget takes effect on July 1.

Microbuses are commonly used by offices, educational institutions and in social or family functions.

"If the proposed supplementary duty is implemented, the cost of a second-hand microbus will go up between 400,000 taka and 900,000 taka, depending on their size and brand," Haque said.

Previously, no supplementary duty was charged on microbuses.

"Now anyone would find it hard to afford a microbus, which would be among the costliest," Haque said.

He said even countries such as Britain, Australia, Saudi Arabia and Thailand allowed import of 12 to 18-year old cars, he said.

"The rules should be more relaxed in Bangladesh."

The government, struggling to boost revenue to cut dependence on foreign aid, so far has not responded to the car importers' pleas.

Some 200 Bangladeshi importers bring in 8,000 or more reconditioned vehicles every year. More than 90 percent of the cars on Bangladesh roads are Japanese, mostly Toyotas.

The cost of cars are generally too high in Bangladesh, where nearly half of its more than 140 million people still live on less than a dollar a day.

But things in the capital Dhaka are different from its other major cities. Traffic officials estimate more than 40,000 vehicles run in Dhaka, a city of 10 million, with 7,000 vehicles added every year. ($1 = 69.00 taka)

Case Interview Question #00350: Our client BMW (FWB: BMW) is a German luxury car

Case Interview Question #00350: Our client BMW (FWB: BMW) is a German luxury car maker that manufactures automobile, motorcycle and engines. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. Headquartered in Munich, Germany, the BMW group produced BMW luxury carsmore than 1,400,000 automobiles and over 110,000 motorcycles worldwide across all its brands in 2010.

Recently, The CEO of BMW wants to grow business and is looking into selling cars in Bangladesh (a sovereign state located in South Asia and bordered by India). The current population of Bangladesh is estimated to be 142 million and the country’s GDP growth is 5% per year during the last three years. The CEO of BMW wants you to help find out whether they can break even in three years if his company enters the Bangladesh market. How would you go about it?

Additional Information: (to be given to you if asked)

Currently, the only luxury car sold in Bangladesh is Mercedes-Benz (FWB: DAI) and they have been in this market for the past 10 years.
Mercedes-Benz imported and sold 10,000 luxury cars in this market over the past 10 years, and has their own dealership in Bangladesh.
There are ~1000 new buyers for luxury cars in Bangladesh each year.
Existing luxury car owners replace their cars every 10 years (the interviewee should calculate how many new cars are sold to existing owners – 1000 per year, and therefore the total market size per year is 2000 new cars)
If BMW enters the market, they will have 30% (The interviewer should not give this info out right away, ask the candidate to estimate first) market share each year.
The price Mercedes-Benz charges is $100,000 per car.
Assume the discount rate is zero.

Possible Answers:

1. Ask the candidate how to estimate BMW’s market share.www.mhsysteminc.com

CAR DEALERS BANGLADESH

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New regulations worry used car dealers in Bangladesh

New regulations worry used car dealers in Bangladesh

The government of Bangladesh plans to implement new regulations on the import of used and reconditioned vehicles. According to the new rules, dealers would be allowed to import only passenger cars that are no more than 3 years old. The current vehicle age limit for importing a used car is of 5 years.

Moreover, the technical inspection of the vehicles would have to be obtained from a private company, JEVIC (Japan Export Vehicle Inspection Centre co ltd.), which standards have become so severe recently that it would be very difficult for Bangladeshi dealers to import cheap but good quality used vehicles. Until now, the technical inspection was carried out by a state owned organization, JAAI (Japan Auto Appraisal Institute), which has been chosen also for inspecting cars exported towards Tanzania and Mauritius. JEVIC has become a major obstacle for importing cheap vehicles in Zambia and in Kenya, as the Inspection Certificate can be refused several times even for minor or esthetic problems.

Fearing disastrous effects on the local car market, the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), is asking the government to work on new regulations that would on the contrary promote the imports of cheap but good quality vehicles from Japan. BARVIDA is suggesting the government to authorize the import of up to 6 year old used cars and up to 8 years for vans and microbuses. www.mhsysteminc.com

Bangladesh: Over 100 injured, 230 cars set on fire, shops vandalized, archbishop

Bangladesh: Over 100 injured, 230 cars set on fire, shops vandalized, archbishop struck with stone in "Islamist" rampage

More on this story. "Islamists go on Dhaka rampage," from UCA News, September 20 (thanks to Twostellas):

Several hundred supporters of the country’s largest Islamist party went on the rampage in Dhaka yesterday during a protest to demand the release of several of their top leaders arrested on war crimes charges.

The crimes allegedly took place during Bangladesh’s fight for independence from Pakistan in 1971.

Police fired tear gas and rubber bullets to try and disperse members of the Jamaat-e-Islami party, who were conducting a country-wide campaign yesterday against the imprisonment of their leaders, who were arrested amid a probe into individuals accused of collaborating with Pakistan and committing atrocities during the war.

More than 100 people including two dozen policemen were injured in the clash which, according to police, flared when the protesters suddenly became violent.

Jihad causes poverty:

At least 230 cars, including five police vehicles, were set on fire or attacked and many shops were vandalized during the trouble, police sources said.

Media reports said similar incidents took place in a number of districts across the country.

According to police, at least 120 people were arrested during the course of the Dhaka violence, which took place in the Kakrail district close to where St. Mary’s Cathedral, the Archbishop’s House and St. Joseph’s Seminary are located.

“I haven’t seen clashes like this for twenty years. We’re lucky no Church buildings were affected even though the road outside the cathedral looked like a battlefield,” said Father Kamal Corraya, the Dhaka archdiocesan social communications commission convener.

Archbishop Paulinus Costa of Dhaka wasn’t so lucky, having been struck by a stone in Ramna Park, which is next to the cathedral, just as the clash began.

The prelate was exercising in the park when he was struck and several seminarians went to his assistance, but luckily the prelate was unharmed, Archbishop’s House sources said.

Holy Cross Fr Pankaj Nokrek, who had travelled to Dhaka for a meeting yesterday, had to run for cover when the violence broke out.

“I had to run through tear gas and scenes of chaos. It was an awful experience, but at least I and some other people managed to find safety in a nearby house,” he said.

www.mhsysteminc.com

Bangladesh: Over 100 injured, 230 cars set on fire, shops

Bangladesh: Over 100 injured, 230 cars set on fire, shops
www.jihadwatch.org/.../bangladesh-over-100-injured-230-cars-set-o...
21 Sep 2011 – Bangladesh: Over 100 injured, 230 cars set on fire, shops vandalized, archbishop struck with stone in "Islamist" rampage. More on this story www.mhsysteminc.com

bangladesh Car Rental - Europcar

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Car hire Bangladesh: Search for a cheap car rental in Banglades

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Shipping to Chittagong, Bangladesh | Transporting car(s) to ... www.ascopeshipping.co.uk/shipping/bangladesh/index.htm We offer shipping services to C

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Tata Motors' to launch Nano car in Bangladesh - The Economic Times

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India's Tata to launch Nano car in Bangladesh - Yahoo! News

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Tata Motors' to launch Nano car in Bangladesh - The Economic Times

Tata Motors' to launch Nano car in Bangladesh - The Economic Times
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14 Oct 2011 – Both the Nano and other rival small cars produced by companies such as Maruti are significantly more expensive in B'desh. www.mhsysteminc.com

AFP: Bangladesh opposition in 3000-car protest rally

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AFP: Bangladesh opposition in 3000-car protest rally

AFP: Bangladesh opposition in 3000-car protest rally
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10 Oct 2011 – DHAKA — Bangladesh's main opposition launched a protest campaign on Monday in which 3000 cars will drive en masse around the country www.mhsysteminc.com

The Global Car-trader Directory Bangladesh 12 traders found

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Cheap car rental in Bangladesh – Daily, weekly, and monthly basis

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International Car Shipping Services to Bangladesh | Nex Worldwide

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Bangladesh Sports Cars Must watch - YouTube

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Best Selling Cars Around The Globe: Posh Tastes In Bangladesh

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India's Tata to launch Nano car in Bangladesh

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14 Oct 2011 – India's Tata Nano, billed as the world's cheapest car, will go on sale in Bangladesh on Saturday -- but with a price tag nearly triple what it is at www.mhsysteminc.com

Bangladesh Girls - Car Chase - YouTube

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other items from this seller

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Bangladesh Autos and Motocycles Cars Market

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