Atlas Bangladesh to supply Honda motorcycles to govt agencies under new deal
Atlas shares jump by 7.02% to reach at Tk54.90
Atlas Bangladesh, a state-owned engineering company, will 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 Atlas Bangladesh and Bangladesh Honda Private Limited (BHL) on 30 April at the conference room of the Bangladesh Steel and Engineering Corporation (BSEC) in Dhaka, according to a disclosure filed with the Dhaka Stock Exchange (DSE).
Following the announcement, shares of Atlas today jumped 7.02% to close at Tk54.90.
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As a condition of the new business agreement, Atlas will terminate its existing business and technical assistance agreement with TVS Auto Bangladesh Limited, effective from 31 July 2025.
Speaking at the signing ceremony, BSEC Chairman MA Kamal Billah said, "Atlas began its business with the world-renowned Japanese brand Honda. After a brief hiatus, we are pleased to have re-established this partnership with Atlas."
He added, "As a result of this agreement, Atlas will supply Honda-branded motorcycles to government, semi-government, autonomous bodies, and government-funded projects exclusively through DPM. This initiative will not only strengthen the domestic industry but also help conserve foreign exchange."
BHL Managing Director and CEO Susumu Morisawa remarked, "Honda is committed to spreading the joy and freedom of mobility in society by delivering top-quality products at reasonable prices. This agreement will be mutually beneficial for both parties."
ABL Managing Director Ajibor Rahman said, "The government procures motorcycles through Atlas. Until now, TVS-branded motorcycles were being supplied. However, there is now a growing preference for Honda motorcycles. Since BSEC holds a 30% stake in Bangladesh Honda, we have entered into this agreement as part of our long-term business strategy."
He further noted, "Under this agreement, we will purchase chassis from Bangladesh Honda and assemble the motorcycles at our factory to meet government demand. This initiative is expected to result in annual sales of 8,000 to 10,000 units, potentially transforming Atlas from a loss-making entity into a profitable one."
