The government has taken an initiative to manufacture spare parts of motorcycles locally with intent to boost the national economy, officials said.
The industries ministry has also drafted the 'Motorcycle Industry Development Policy 2018' to develop the highly potential sector.
It has also formed a coordination council empowered with the oversight of the implementation of the policy.
The council will sit on March 09 to make some major decisions like the establishment of a backward-linkage industry for motorcycle spare parts.
It will also discuss steps to reduce motorcycle registration cost and check illegal imports of branded motorcycles.
"We'll sit in a meeting on March 09 to take some decisions on the growth of the local motorcycle industry," said a ministry official who is involved with the process.
Following the directives of the government, he said, the central bank has decided to introduce retail finance for the local motorcycle market.
The commerce ministry and the National Board of Revenue have also been asked to take steps to contain illegal import of branded bikes, he told the FE.
They will inform the ministry concerned of their efforts to this end at the next meeting.
According to the sector insiders, an estimated 1,200 spare parts are needed to assemble a motorcycle.
Bangladesh has to import almost all the gadgets because of the absence of a backward linkage industry to supply these parts.
Nearly 90 per cent of the spare parts are currently being imported from India, it added.
The import duty on spare parts is now between 22 per cent and 58 per cent, compelling the country to pay huge foreign currencies for the purpose.
The local demand for motorcycles in Bangladesh is between 0.6 million and 0.65 million annually.
Automakers like Honda, TVS Ltd, Uttara Motors and Walton are now manufacturing motorcycles in the country.
According to the official, the industries ministry has requested the Bangladesh Road Transport Authority to rationalise registration fees for motorcycles.
They are expecting a positive response from the registration regulator soon.
The official said the expansion of motorcycle industry will ultimately help grow the automobile industry.
Countries like Japan and South Korea had developed automotive industries first that led to the growth of their motorcycle industries.
