Bangladeshi auto parts dealers and vehicle service providers located in the UAE intend to establish multiple parts manufacturing factories in the country's fast-growing $4.42 billion automotive marketplaces.

At a recent meeting with the executives of the Bangladesh Automobiles Assemblers and Manufacturers Association, Mohin Uddin, a key member of the Bangladeshi auto parts dealers in the UAE, said, "We are willing to invest in Bangladesh to help the industry's growth" (BAAMA).

The UAE-based Bangladeshi auto traders also stated at the meeting held on the sidelines of Dubai Expo 2020 that they are in a unique position to market Made in Bangladesh auto parts in the UAE market, which will help Bangladeshi parts manufacturers expand in the Gulf Cooperation Council (GCC) markets.

Over 5,000 Bangladeshi traders control the UAE's automotive aftermarket industry, particularly the market for old vehicle spare parts.

They are involved in the imports, wholesale, retail, servicing, and re-export of auto components, and many of them operate auto electric service centres, garages that handle all forms of vehicle maintenance and repairs.

These companies employ over 50,000 experienced and semi-skilled workers who are well-versed in the maintenance, repair, disassembly, overhaul, and re-assembly of numerous automotive models and brands.

According to an industry study, more than 4.7 million automobiles are presently registered in Bangladesh, with Japanese brands accounting for more than 60% and Indian brands accounting for 25%. Sixty-six percent of the 4.7 million registered vehicles are two-wheelers, which have grown at a compound annual growth rate (CAGR) of 15% over the previous five years.

According to the survey, Bangladeshi auto assemblers and manufacturers import 35% of their parts from China and 30% from India.

"The Bangladesh government is interested in developing the automobile industry," said Mohammad Sirazul Islam, executive chairman of the Bangladesh Investment Development Authority (Bida), which hosted a seminar at the expo to encourage UAE companies to invest in Bangladesh's automotive industry, which relies heavily on imported auto parts.

Abdul Matlub Ahmad, president of the BAAMA, said, "The automobile industry is going to be the next big contributor to Bangladesh's economy if we can attract foreign investment in the automobile component and parts industry, which we currently import for our manufacturing plants.

"Currently, the sector is focused on the domestic market. However, if we can properly grow the business, Bangladesh might become a big vehicle exporter to the rest of the globe, similar to how we established the ready-made clothing industry "He said.

"Right now, we're looking for investment in the auto parts industry that could produce vital auto parts to support local auto assemblers and manufacturers so that we don't have to import them from other countries," Abdul Matlub Ahmad, president of the India-Bangladesh Chamber of Commerce and Industry, concluded (IBCCI).