Dhaka, Bangladesh, September 27, 2012 - September 27, 2012 - Honda Motor Co., Ltd. today signed a joint venture agreement with Bangladesh Steel and Engineering Corporation (BSEC) to establish a motorcycle production and sales joint venture company before the end of 2012, to deliver Honda products with speed, affordability and low CO2 emissions and enhance customer satisfaction and efficiency in Bangladesh where further market expansion is expected.
With the completion of the signing of the joint venture agreement, Honda and BSEC will now work toward the establishment of the new motorcycle production and sales joint venture company with financial shareholding of 70% by Honda and 30% by BSEC. Since 1972, Honda motorcycle production and wholesales functions have remained under a technical collaboration agreement with Atlas Bangladesh Ltd., a BSEC subsidiary. When the new joint venture company begins operations, it will establish an operation with integrated production and sales functions under the basic Honda policy of "start small, grow big."
In Bangladesh, with a population of approximately 160 million, industry-wide motorcycle sales in 2011 reached 180,000 units, an 11% increase compared to 2010*, and the steady growth of the market is expected to continue. Striving to achieve further growth of its motorcycle business in Bangladesh, Honda will establish a motorcycle business structure that will enable Honda to quickly respond to the diversifying needs of its customers. Envisioning collaboration with other Honda operations among Southwest Asian countries including India and Pakistan, the new company will strengthen its competitiveness and strive to provide products and services which are beyond the expectations of its customers.