1. Automotive (Light Engineering) Sector THE MARKET AND THE GROWTH POTENTIAL Presentation By

2. Market Composition Sourcing > Import > Manufacturing Sales > New > Used After Sales > Spare Parts > Service

3. Market Composition Production ◦0% Manufacturing ◦Assembly & Fabrication Mostly Bus, Truck and 2 Wheelers Automobile Sales 2014 *Data Source BRTA 2014-15

4. Market size & Growth Automobile Business Types Automobile Sales ◦Sales Operation ◦Assembly & Fabrication ◦Manufacturing After sales Service Spare Parts ◦Sales ◦Production US$ 2.41Billion 1.4% of GDP Estimation & Calculation based on BRTA data

5. Market size & Growth REFLECTS THE GROWTH IN COMMERCE AND INDUSTRY PERSONAL VEHICLES ARE DISCOURAGED TO REDUCE TRAFFIC CONGESTION Political Turmoil Effect High Tax on private vehicles

6. Exports and FDI Bangladesh is not exporting Automobiles as finished goods. ◦However automobile components are being produced in Bangladesh by foreign companies in EPZ for Export. Our Vehicles are mostly imported from Japan and India. ◦Cars & SUVs from Japan ◦Commercial Vehicles and 2/3 Wheelers From India ◦Korean, Chinese and Thailand made vehicle import is increasing in recent years

7. Industry Growth Potential GROWTH PROSPECT AND OPPORTUNITIES

8. Growth Potential MOTOR VEHICLE PER 1000PER CAPITA INCOME *Data Source World bank 1/3 rd vehicle on road compared to Regional Markets

9. Growth Potential The market has a suppressed Demand of at least 200% of Current size. It Will grow exponentially with GDP and per capita income levels over the next 15 years. Hundreds of Thousands Jobs will be created for skilled and unskilled manpower. Technological growth of the country. Challenges ◦Lack of infrastructure ◦Affordability ◦Massive population concentration in Capital ◦Instability in policy

10. Opportunity Maximization ◦Develop the Infrastructure to allow more vehicles – Roads & Parking Facilities ◦Implement order on the road to increase efficiency ◦Awareness generation & Law enforcement ◦Overall Decentralization ◦Mass Transit system development ◦Reduction of interest rates to increase affordability ◦Produce Spare parts to ensure backward & Forward integration ◦When market size reaches optimum condition ◦Heavily invest in local production ◦Market protection through regulation

11. Business Opportunities Financing for consumers ◦Expand affordability ◦Expand market size Financing for parts Manufacturing ◦Create backward linkage for production ◦Meet local market needs for parts ◦Export to producers abroad Financing for vehicle Manufacturing ◦Vehicle production for Domestic use ◦Vehicle export abroad taking advantage of cheaper production costs in Bangladesh Mobility GDP & Business Job Market Export

12. Just Need a Push to start Presentation By