N. Ramchandran: “The government should make the roads more suitable for bigger buses”

Recently Nitol Motors Ltd., sole distributor of Tata Motors in Bangladesh, launched a new CNG (Compressed Natural Gas) run bus in Dhaka. These buses with 57 seating capacity are exclusively designed for use of CNG as fuel.

On this occasion Business Bangladesh interviewed N Ramchandran, country manager (automobiles), Tata Motors Ltd. where he talked about the automobile marketing prospects, Tata’s plans in Bangladesh and Bangladesh and, obviously, about the new product.


N Ramchandran who has been working in the automobile sector in Bangladesh for five years said in a city like Dhaka there is scope to increase the number of CNG buses significantly.

Citing the example of Kolkata where most of the roads are narrower than in Dhaka, he observed that if the types of vehicles on road are reduced and some roads are made one way, the number of bus routes could increase.

He also suggested creating new routes for buses with more than 50 seats would reduce traffic congestion in Dhaka.

About the new product he said that they had two objectives safety and reasonable price in their mind.

“This model is the first of its kind in Bangladesh that is exclusively designed to use CNG as fuel and it is safe and more cost effective than that of petrol engines converted to CNG,” said Ramchandran.

He said that the chassis of this bus has been designed especially to use CNG as fuel. To ensure safety at optimum level they have fixed the cylinders inside heavy-duty frames and the positions of cylinders will keep the balance of the bus which might not be possible in the converted ones.

“The electronically controlled auto engine cut off device will ensure high performance and safety,” claimed country manager of Tata in Bangladesh.

The buyers can buy fully assembled bus of this model or can buy the chassis only. “We would provide the operators with safety measures at the time of assembling body if they want,” Ramchandran said.

About the existing market in Bangladesh for buses his assessment is there is a market of about 400 to 450 buses here. Ramchandran is expecting to sell 200 buses of this model by March 2006.

The country manager of Tata in Bangladesh N Ramchandran said that they are giving priority to 50 seater buses for Dhaka but at the same time he pointed out some problems to run big buses.

“The government should make roads in the city more suitable for such buses. Road franchising, withdrawal of mini buses from the route where the big buses run and improvement of traffic management would make the investors invest in this sector,” said Ramchandran.

Ramchandran informed that Tata has undertaken a project to train local mechanics in the factory of Tata in India. They send two to three mechanics from the local operators of Tata buses to the mother factory for training at free of cost.

“We have already trained 35 mechanics from Bangladesh and moreover two highly trained engineers are working in Bangladesh to provide after-sale service,” said Ramchandran.

About Tata’s future plan of Tata in Bangladesh he informed that the giant automobile manufacture in India do not have any plan to establish manufacturing plant in Bangladesh at the moment. He pointed lack of manpower and small market as reasons.

“An automobile manufacturing industry involves hundreds crores of Taka and it would not be feasible to invest that much for such a small market. If we plan for exporting that is also not suitable. Only because of low labour cost, we cannot ignore other facts like unskilled manpower,” said Ramchandran.

About the main competitors of Tata in Bangladesh he named Chinese manufacturers and said that they have a target to grab 50 per cent of the total market in Bangladesh within a short span of time.


- interviewed 1Ayon Islam

Toyota ascendant, GM falters
General Motors looks set to be toppled as the largest automaker in the world by Toyota. It has already done so in GM’s back yard. Earlier this year, Toyota overtook GM’s number one spot in the US, overturning 73 years of history. Toyota has already overtaken another American company, Ford to become the second-largest carmaker in the world and looks set to catch up GM.

The two companies compete in every segment and in every region. In the global playing field, the two car manufacturers are playing a very public game of cat and mouse. For now however it looks like Toyota is in the ascendancy. The sales records of the Toyota Motor Corporation are more than impressive.

As of the end of fiscal year March 31 2005, Toyota announced that global sales had increased by 10.5 per cent while profits rose 0.8 per cent to $11.1 billion, more than the combined profits of GM, Ford and DaimlerChrysler.

On a global scale the two companies are a study in contrast. Toyota is still opening new manufacturing plants while GM is suffering from surplus production capacity in North America. GM is appearing more and more like a weakened dinosaur while Toyota continues to grow and to develop across the global market at a faster rate.

Amid high gas prices and an end to employee discounts, the global sales of GM cars were down following a severe sales slump. The reason for the difference is the cost of the cars. Some critics have stated that GM is suffering now from never really trying to compete effectively against Japanese auto makers.

Toyota’s success has been due to its efforts to cut the costs of production while retaining quality. The global trend has led away from large fuel inefficient cars to the new hybrid generation. Toyota is seen to be an innovator and GM simply is not.

Porsche comes to town, but BMW is still tops
Executive Motors, the sole dealers of BMW cars in Bangladesh, are quite confident that they will hold their position at being the highest selling luxury car brand in Dhaka, despite the entry of the world-famous Porsche brand into the Bangladeshi luxury car scenario.

"Porsche is more widely known as a 'fast' car. But BMW is known for being a performance driven car. There will always be a huge difference between the two brands as such," said Tayabul Bahar, General Manager Executive Motors Limited.

Executive Motors Limited, sole dealers of BMW cars in Bangladesh, has been quite successful in the selling race, over the last few years. "We have sold over 190 cars during this time, with around 165 complete transactions and over 25 more units yet to be delivered to our customers," said Bahar.

The BMW showroom was initiated in the Tejgaon Industrial area, three years back. During its first year, the dealers were able to sell around 60 units. "Most models sold were from the 3-series and 4-series. The 5-series models were also selling but at a slower pace," said Bahar.

But last year, over 75 cars were sold from the showroom. "Surprisingly from last year, cars from the 3 & 5 series were being sold equally. And the 6 series also gained popularity then," said Bahar. This year, the dealers have already exceeded their annual target of 81 units.

Porsche, on the other hand, is yet to initiate its own showroom. But already, the brand has sold around 16 units in Dhaka.

"Some of our 'fast' cars like the G4, the M5, 630 convertible and the 630 coupe are being sold regularly," said the General Manager of Executive Motors. But besides BMW, Porsche will also be facing substantial competition from other luxury car brands.

Mercedes Benz, one of the most reputed global brands, is having a close battle with BMW in the Bangladeshi market. "We have sold around 187 units over the last two years," said Md. Ariful Azim, Head of Operation, Rancon Motors Limited. Rancon Motors Limited is the dealers of Mercedes Benz in Bangladesh. Third in the race is Lexus with over 120 units sold.

The overwhelming demand of luxury cars is especially from the upcoming business magnates of the nation, according to these dealers. "The young businesspeople or Chief Executive officers of leading business organizations and firms are mostly our customers. As these businesspeople are in their late 30s or 40s, they are more knowledgeable about the durability, luxury, performance, speed and other details of each luxury car than their predecessors," said Bahar, when asked about BMW's customer base in Bangladesh.

Besides its impressive sale in the city, sources from Executive Motors Limited, informed Star City that a large number of cars are also being sold to buyers in Sylhet, Chittagong and other parts of Bangladesh.

In order to sustain their customer base, most of these dealers are trying to ensure the best after sales service. Some also, provide test drive facilities to potential customers.

Executive Motors has one of the best Service centers amongst all these dealers. Their service center, located near the Tejgaon Industrial area, is equipped with skilled technicians and the best equipment.

"After-sales is one of our key priorities. As soon as a customer buys a car from us, the welfare and the maintenance of the car becomes our responsibility," said Bahar, when asked about the After sales service. He claimed that the after sales service is also another key factor for the booming demand of BMW cars in Dhaka.

Due to the whooping sale, Executive Motors is already being highly appreciated by the original manufacturers. "Recently, we have been awarded 'the Best Facilities Award 2005' from BMW headquarters," said B