Atlas Bangladesh set to roll out e-scooters, bikes by August
It will initially assemble 4 electric two-wheeler models using parts imported from China’s Zhejiang Luyuan
Atlas Bangladesh Ltd is set to enter the electric vehicle (EV) market by August, following a memorandum of understanding (MoU) with China's Zhejiang Luyuan Electric Vehicle to source parts and technical support.
Under the newly signed MoU, Atlas Bangladesh will import parts from Zhejiang Luyuan — a leading Chinese electric scooter and bike manufacturer — to assemble four EV models initially.
Atlas Bangladesh will assemble or manufacture electric scooters and bikes under its own brand name, ATLAS EV, using imported parts.
The products will be marketed through the company's existing dealer network, according to a disclosure published on the Dhaka Stock Exchange (DSE) on Saturday (24 May).
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Following the disclosure, its share price hit the daily upper limit, rising 9.98% to Tk57.30 each.
"This partnership marks a strategic shift for us. By August, we aim to introduce EVs assembled from imported parts, and over time, we will manufacture some parts in our own factory," said Md Ajibor Rahman, managing director of Atlas Bangladesh.
He said, "We have already completed model selection of EVs, and initially four electric vehicles to be introduced in the range of Tk1 lakh to Tk1.5 lakh."
Struggling with years of losses, state-owned Atlas Bangladesh is eyeing a turnaround by entering the electric vehicle (EV) market, said an official of the company, citing that the initiative is remarkable for the company.
Chinese electric scooter and bike manufacturer Zhejiang Luyuan was founded in 1997, and it produces 2.1 million two-wheelers annually, as per information on the company website.
MoU signed on 22 May
According to its disclosure, the MoU was inked on 22 May between state-owned Atlas Bangladesh Limited and Chinese Zhejiang Luan Electric Vehicle Company Limited at the Bangladesh Steel and Engineering Corporation (BSEC) conference room.
According to a report by BSS, the deal was signed in the presence of the Additional Secretary of the Industries Ministry, Md Nuruzzaman.
Among others, Additional Secretary (state-owned corporations) of the Ministry of Industries MA Kamal Billah and BSEC Chairman Md Anwarul Alam, Managing Director (MD) of Atlas Bangladesh Limited Md Azibar Rahman and senior officials of the BSEC and Atlas Bangladesh Limited were present on the occasion.
Director (International Department) of Zhejiang Luan Electric Vehicle Company Limited Daniel Yu and senior officials of the company were present during the MoU signing ceremony.
Atlas is struggling for survival
Its financial reports showed that the state-owned Atlas Bangladesh has been struggling for years and is burdened with heavy losses.
To overcome losses, Atlas Bangladesh entered an agreement with Bangladesh Honda Private Limited (BHL) to supply Honda motorcycles to various government departments and organisations under the Direct Purchase Method (DPM), based on their requirements.
An agreement to this effect was signed between both companies on 30 April.
In November last year, Atlas ventured into motorcycle helmet manufacturing in collaboration with Runner Trade Park, a concern of the Runner Group, with an initial investment of Tk18 crore.
The two companies have already signed a memorandum of understanding (MoU) recently to establish the helmet manufacturing unit within Atlas Bangladesh's factory premises.
The unit, named the Atlas-Runner Helmet Plant, will operate under a separate board with representatives from both parties.
Atlas Bangladesh Limited is a two-wheeler manufacturer, and Runner Trade Park, established in 2018, is an authorised distributor for Bajaj genuine parts and lubricants, specialising in both two-wheelers and three-wheelers.
Atlas Bangladesh's journey
According to its website, Atlas Bangladesh began its business in 1966 as a privately owned entity in collaboration with Honda Motor Company Limited.
After Bangladesh's independence in 1972, Atlas was nationalised and placed under the Bangladesh Steel and Engineering Corporation (BSEC).
In 1988, the company was listed on the stock exchanges and later in 1993, Atlas began its business with Hero Honda.
However, the separation of the Japanese brand Honda and Indian Hero Honda in 2011 marked the beginning of Atlas's decline.
In 2018, the company signed a corporate partnership with TVS Auto Bangladesh, and two years later, in January 2020, Atlas launched a new motorcycle assembly line to assemble TVS motorcycles.
But Atlas has been incurring losses for years due to its inability to sell its products.
In the fiscal year 2023-24, the company reported a loss of Tk6.65 crore and announced that it would not pay any dividends to its shareholders.
In the first nine months of the current fiscal year, it has reported a year-on-year 115% growth in its revenue during the July to March period.
Despite the significant growth, it had incurred a loss of Tk2.71 crore.
