Runner to bring KTM motorcycles
The famed KTM motorcycles will be available in Bangladesh from January 25, thanks to Runner Automobiles.
In early August 2020, the Runner announced an agreement with Bajaj Auto that part-owns the Austrian bike brand to become its authorised distributor.
Initially models Duke 125 and RC 125 will be launched.
"Both models are premium and the price range will between Tk 3.5 lakh to Tk 4 lakh," said Amid Sakif Khan, marketing director of Runner Group.
According to him, around 15 per cent of current motorcycle sales in Bangladesh were of the premium segment and their target was to acquire an around 4 per cent market share.
Now, the annual demand for motorcycles is around 500,000 units and from the premium segment it is around 35,000 units.
Khan said the demand for premium motorcycles was going to increase in line with the economic development of the country.
Thereby, he believes their two models will win over motorcycle enthusiasts. He said initially the two models will be available at their Tejgaon showroom in the capital.
"Gradually we will appoint dealerships across the country to enhance the market," said Khan.
Runner is even committed to make spare parts and after sales service available for the consumers, he noted.
"The young generation loves new features and new models of motorcycles, for which Runner Automobiles decided to take on the distributorship," he said.
Runner, which already has its own line of motorcycles and also markets American brand UM and Italian brands Vespa and Aprilia, has started the process for upgrading its assembly plant in Bhaluka of Mymensingh for which KTM motorcycles were to be made available from this month.
Japanese companies Yamaha and Suzuki are also selling premium motorcycles in Bangladesh.
The current market share of premium motorcycles is about 15 per cent whereas it was only 5 per cent just four years ago.
Just two years ago, Bangladesh was dependent on imports to meet 95 per cent of its demand for motorcycles.
But the situation has completely reversed: today, about 96 per cent of the two-wheelers plying on the roads are either locally manufactured or assembled, according to the industry people.
Seven firms -- Japanese brands Honda, Suzuki and Yamaha, India's Bajaj, TVS and Hero, and Runner Automobiles of Bangladesh -- have made the country almost self-sufficient in motorcycle manufacturing or assembly in the fast-growing market.
Operators now predict that the market would grow manifold in the next two-three years because of rising incomes, steady growth of the economy and favourable policy and tariff structures despite the pandemic hampering production and sales in the last four months.
About 1,600 motorcycles are sold every day in the country, nearly doubling from 900 in 2016, according to market players.
In 2018, about 480,000 motorcycles were sold, up from 387,000 in 2017 and 270,000 in 2016.
Bajaj is the market leader with a 40 per cent share. It sold about 2.25 lakh units in 2018. It churns out 12,000 units per day at its Zirani factory in Savar.
Bajaj Auto, the world's third-largest motorcycle manufacturer and second-largest in India, originally acquired a 14 per cent stake in KTM in 2007 and has subsequently raised it to 48 per cent.
Currently, it exclusively manufactures the Duke range of KTM motorcycles.