Fair Technology yesterday announced it has entered into an exclusive partnership with South Korean automotive manufacturer Hyundai Motors to set up a car assembly plant in Bangladesh within the second half of next year.
Bangladesh is still a reconditioned car dominant market as only 25 per cent of cars sold here are new, said Mohammed Mesbah Uddin, chief marketing officer of parent company Fair Group, in a virtual ceremony marking the announcement.
As per Fair Technology's market study, some 25,000 to 30,000 cars are sold every year in Bangladesh -- and most of them are second-hand ones brought in from Japan, where due to the superior road conditions the wear-and-tear is minimal.
"We are committed to building the car assembling ecosystem in the country. Our target is to reshape the market as one of new cars," Uddin said.
The company is targeting to upgrade the market share of brand-new cars to 50 per cent within the next three to four years.
Some years ago, the government undertook a favourable policy to develop the car assembling industry and a few companies moved to take advantage of it.
Fair has started discussions with the government, especially with the National Board of Revenue, over some tax issues and if a clear direction comes up the company would expedite the preparations for the plant, Uddin added.
Fair already has developed the competency to manufacture sophisticated, high-tech products.
It is already manufacturing a huge variety of electronic goods of Samsung in their Narsingdi plant including smartphone, television, refrigerator, washing machine, air conditioner, microwave oven, air purifier and other home appliances.
Fair Technology also obtained the exclusive dealership of Hyundai and yesterday rolled out two car models of the South Korean brand.
A few more would be made available within the next 15 days.
Fair had planned to launch the cars sometime between March and April but the pandemic forced them to bring changes to the plans, according to Uddin.
"Our vision is to transform the Bangladeshi car market and provide the best quality products for the consumers," said Mutassim Daiaan, director of Fair Technology.
Hyundai has the best in quality in their car line-up and Fair Technology would provide a world-class customer experience in their showrooms and after-sales service, he said, adding that attractive warranties would be provided too.
The South Korean brand is currently dominating different markets, including that of India, where it is the second biggest player.
"In Bangladesh, we have no position right now but within the next few years, we want to cater to a good portion of the market, which we are expecting," Uddin said.
Fair Technology has fixed two top priorities -- best quality in after-sales service and availability of parts -- and they were putting massive efforts to ensure those.
It has developed a training module for mechanics across the country such that customers can easily access support from them.
It also has plans to establish a recycling industry in Bangladesh so that customers do not face any hassles on resale issues, Uddin said.
The company has initially targeted Dhaka and then to Chattogram. After that, it will set up shop in other cities.
Fair also plans to provide hybrid cars as the demand is gradually increasing alongside that of electric cars, both of which will lead the car market in the coming years, Uddin said.