Integrated automobile policy crucial for green transport in Bangladesh: Experts

Industry stakeholders have called for the urgent formulation of an integrated automobile policy to promote green transportation in Bangladesh. 

They also stressed the need for a coordinated system encompassing maritime, rail, and road transport to foster sustainable growth.

These remarks were made by automobile sector business leaders and experts at a workshop titled "Conductive Automobile Policy for Green Growth and Competitive Economy," organised by the Economic Reporters Forum in the capital today (25 June).

Mentioning the absence of a comprehensive law for the country's automobile industry, Matiur Rahman, president of Bangladesh Motorcycle Manufacturers and Assemblers Association, said, "There is a law for assembly and manufacturing, but when that law was drafted, we proposed a 30% duty gap between CKD (complete knocked down) and CBU (complete built up) units. However, it was set at up to 70%, leading to a disconnect between policy and reality."

He added that no policy has been provided for the production of the two thousand components required for vehicle manufacturing, resulting in a lack of policy coordination.

Rizwan Rahman, former president of the Dhaka Chamber of Commerce and Industry, shared his past efforts. "While I was president of the Dhaka Chamber in 2021, I worked extensively on the automobile industry. We proposed a policy, but the NBR did not adopt it; they pursued their own policy, creating a gap with the industry."

Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), pointed out that microbuses, which contribute significantly to the national economy, are not manufactured domestically, yet face high import duties. 

He recommended adopting an import-friendly policy for used and reconditioned vehicles produced with advanced technology, including those from Japan.

In his keynote paper at the event, economist Masrur Riaz highlighted that Bangladesh's logistics (product supply system) costs are among the highest globally, being at least 20-25% higher than average. 

He suggested that reducing these excessive costs could boost export competitiveness by 20%.

Commerce Adviser Sk Bashir Uddin underscored the importance of considering age, environmental friendliness, and quality for imported vehicles, alongside local manufacturing. 

To leverage Bangladesh's demographic dividend, he stressed the need to improve supply chains for all types of goods across the country and urged businesses to take effective initiatives for the widespread expansion of the domestic automobile industry.