Mitsubishi Expanding its Market

Pragati Industries Limited assembles cars and buses, of the Pajero, Vauxhall, and Mitsubishi brands. Pragati Industries Limited is based in Dhaka, Bangladesh.  Mitsubishi wants to grow the company as a whole and Pragati is holding a negotiation with Mitsubishi to produce its cars. The country's lone state-owned automobile assembling industry is now assembling Mitsubishi's Pajero car.

This proposal comes nearly two years after Pragati Industries of Bangladesh started assembling Mitsubishi cars. Mitsubishi for years has been trying to expand more to the open market, currently Mitsubishi is the 6^th largest automaker in Japan and 16^th in the world by production. Mitsubishi has very strong interests after companies from South Korea and Malaysia planned to set up car plants in Bangladesh to increase their growing market.

Both Mitsubishi and Bangladesh will benefit from this deal if it fully goes through. Mitsubishi will have more car plants and more of a market to appeal too and Bangladesh economy will improve. Why? Well one example stated by Md Abdul Hamid Sharif, chief executive officer of Auto Con Group, is that the cost of a Mitsubishi Pajero Car, which is sold in Japanese market, will come down by 35% to 40% in the local market, if such vehicle is manufactured in Bangladesh with minimum value addition of 50%-60%.

  “Once the agreement is done, it will move Bangladesh to another level of industrialization,” said Md Abdul Hamid Sharif, chief executive officer of Auto Con Group. 

For more information on this agreement please refer to http://goo.gl/dl5i8V

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