Honda is the world's largest bike or motorcycle manufacturer. First complete motorcycle made by Honda in 1949, which was named Dream. As a result of its efficiency and performance, Honda has become very popular all over the world. And by 1964, it became the world's largest bike manufacturer.
The famous brand Honda started its journey in Bangladesh as a joint venture company since 2012. But the brand's bike is still beyond the purchasing power of ordinary people. Bike or motorcycle price are much higher in this country than in other neighbor countries. First and foremost reason is the import dependence of the motorcycle sector. Importers of this sector have to pay a wide public tax at different rates. As a result, the price of the bike is increasing at the threshold level. The amounts of government tax paid by the company are given below.
In order to reduce Honda bike price in Bangladesh, In the last fiscal year 2016-2017, the government of Bangladesh has developed a progressive manufacturing plan (PM = progressive manufacturing), which is the new hope light in this sector.
Under the new proposed rule of the government, if a company has the permission of this listing, it will be able to import bikes by tax reduction for the next two years from the date of approval. This is less than 25% of CKD (Full Knock Down) followers. In the second year, the importers must prepare 10% of the total motorcycle or bike parts in Bangladesh and must be connected to the bike. Thus, by the 5th year, more than 10% of the components should be connected to the motorcycle every year. The quantity of locally manufactured standard equipment will be 50%. As a result, the price of Honda bikes will be reduced considerably.
Bangladesh Honda Private Limited (BHL) has already approved the progressive manufacturing plan (PM = progressive manufacturing). And other companies are awaiting approval at this. Honda has already started necessary planning, investment and production. Hopefully, in the beginning of the year 2019, the effect of this new rule will come fully in the current price of Honda Bike in Bangladesh. This will reduce the prices of Honda's bikes in Bangladesh.