THE PRESENT SCENARIO AND THE PROSPECT OF AUTOMOBILES IN BANGLADESH (Uttara Motors Ltd.)

Executive Summary

In recent year rural road communications mainly connecting roads from Thana to important Hat, Bazar and villages have been increased significantly. Consequently agriculture, agriculture related business and other economical activities have been increased and side-by-side mobilization of people also increased. As an easy and affordable transport, Two-wheeler becomes a very popular vehicle in rural and semi urban area in our country.        

Objective of the study

The main objective of the study is included:

(i)            An analysis of the present situation of two-wheeler market in Bangladesh,

(ii)           An analysis of sales trend of two-wheeler and estimation of their future demand.

(iii)          An analysis to find the proper marketing and sales tools to marketing the products.

(iv)          An analysis to measure the potentiality of Bajaj products.

Market size and growth rate of Two- Wheeler:

Two-Wheeler market in Bangladesh is very optimistic and demand is increasing rapidly. At the moment market size of Two-Wheeler is about 35,000 units per year. In l2002-03 financial year growth rate was 44%. Growth rate mainly depends on socio economic environment and Government policy of our country. Average growth rate of Two- Wheeler market in last six years was

Existing brand in Bangladesh market:

At present following makes and models of Two- Wheelers are available in Bangladesh market-

Brand/ Make	Country of Origin
Bajaj	India
Honda	Japan
Hero Honda	India
Honda Pak	Pakistan
Xinfu	China
Jialing	China
Yamaha	India/ Japan
Suzuki	India
Zongshen	China
Dayang	China
Qjiang	China

4. Position of Uttara Motors Ltd in Two- Wheeler market:

Uttara Motors Ltd., sole distributor of Bajaj Auto has achieved highest market share in financial year 2001-02 for the first time, and it was only 19% of total market size. Achieving 19 % Share Company had to face tuff competition. About number of 12 automobile companies are involved with Tow- Wheeler marketing and they are offering attractive package of price and features to their potential customers.

The main competitors of Bajaj are Hero Honda, Yamaha, Honda Pak, Dayang etc. and their market share is very closed to Bajaj. Beside these several number of Chinese brands are available in Two- Wheeler market and are achieved a remarkable market share.

As a highest market share holder all of we have try to grip the share first position and try to increase it to 25 % of total market. We can achieve the expected market share by taking special marketing activities and offering special price, features, benefits to the potential customers.

Because of important profit earning source, we have to emphasis on Two- Wheeler marketing with full concentration. It is little bit difficult to us to achieve the expected target alone. We believe Bajaj will actively participate with us and give all possible financial and technical support from their side to successfully complete our mission

1.2.  Market size of Two- Wheeler in last six years:

Financial Year	Market Size (Units)	Market Share of UML
1996-97	14,316	2528
1997-98	19,784	1168
1998-99	19,224	806
1999-00	22,506	2429
2000-01	22,622	2920
2001-02	32,573	5945
2002-03	43,000	7805

1.3. Growth Rate of Two- Wheeler Market in last 5 years:

Financial Year	Growth Rate of Market	Growth Rate of UML
1997-98	38 %	-54%
1998-99	- 3 %	-31%
1999-00	17 %	300%
2000-01	.5 %	20%
2001-02	44 %	210%
2002-03	32%	31%

Growth rate calculated based on previous year. Base year is 1996-97.

1.4.  Two-Wheeler sales trend of Uttara Motors Ltd. in last four years:

Financial Year	Unit	Amount in lac
1998-99	806	813
1999-00	2429	1569
2000-01	2920	1990
2001-02	5945	3714
2002-03	7805	4922
2003-04	10,000

1.5.  Two- Wheeler Marketing Company in Bangladesh:

Marketing Company	Make and Model	Market Share	%
Uttara Motors Ltd.	Bajaj	7805	18.15%
Atlas Bangladesh Ltd.	Honda Pak/ Honda (In/Ja)	12442	28.89%
H.S. Enterprise Ltd.		3733	8.7%%
Rupsha Trading	Zongshen	2490
Karnaphuli	Yamaha	1605
Bangladesh Auto Manu. Co.	Jialing/ Qjiang	460
Emma Motors	Jialing/ Xingfu	1025
Rian Motors	TVS/ Suzuki	2320
Runner	Dayang/ LML	9720
Singer Bangladesh Ltd.	Singer	1602
Road Master	Challenger/ Kinetic Boss	879

2.1.  Market share of different brands of Two- Wheeler market in 2002-03

SL No.	Brand / Make& Model	Units	Percentage
1.	Bajaj	7805
2.	Hero Honda	7017
3.	Honda Pak	2700
4.	Honda (Japan)	2725
5.	Xingfu	465
6.	Jialing	3435
7.	Jincheng	250
8.	Jianshe
9.	Singer
10.	Emma
11.	Yamaha
12.	Yamaha (Japan)
13.	LML
14.	Qjiang
15.	S. Suzuki
16.	Suzuki
17.	Zongshen
18.	Quinky
19.	Dayang
20.	Nitol

                  

2.1.  Market share of different brands of Two- Wheeler market in 2001-02:

SL No.	Brand / Make& Model	Units	Percentage
1.	Bajaj	6127	19
2.	Hero Honda	4987	15.3
3.	Honda Pak	2900	8.9
4.	Honda (Japan)	1550	4.76
5.	Xingfu	405	1.23
6.	Jialing	1575	4.83
7.	Jincheng	245	.75
8.	Jianshe	450	1.38
9.	Singer	744	2.28
10.	Emma	285	.87
11.	Yamaha	3835	11.77
12.	Yamaha (Japan)	1200	3.68
13.	LML	300	.92
14.	Qjiang	510	1.56
15.	S. Suzuki	900	2.76
16.	Suzuki	150	.46
17.	Zongshen	1750	5.37
18.	Quinky	280	.86
19.	Dayang	4140	12.71
20.	Nitol	240	.72

                  

2.2. Market share of different brands in Two- Wheeler market in 2000-2001:  

SL No.	Brand / Make& Model	Units	Percentage
1.	Baja	2920	13
2.	Hero Honda	2176	9.61
3.	Honda Pak	2000	9
4.	Honda (Japan)	1100	4.86
5.	Xingfu	1625	7.17
6.	Jialing	3049	13.46
7.	Jincheng	1000	4.41
8.	Jianshe	445	1.96
9.	Emma	20	.09
10.	Yamaha	3241	14.31
11.	Yamaha (Japan)	1000	4.41
12.	LML	150	.66
13.	S. Suzuki	600	2.65
14.	Suzuki (Japan)	430	1.90
15.	Zongshen	1200	5.3
16.	Dayang	1521	6.71
17.	Others	175	.77

2.3.Market share of different brands in Two- Wheeler market in 1999-2000:

SL No.	Brand/  Make& Model	Units	Percentage
1.	Baja	2305	11
2.	Zongshen	1340	6.4
3.	Jianshe	300	1.42
4.	Xingfu	899	4.28
5.	Honda Pak	3212	15.29
6.	Jialing	2260	10.75
7.	Jincheng	600	2.85
8.	Yamaha	4700	22.37
9.	Hero Honda	2084	10
10.	Samurai Suzuki	490	2.33
11.	Yamaha (Japan)	1150	5.47
12.	LML	450	2.14
13.	Dayang	1220	5.8

                                                           

2.4.  Market share of different brands in Two- Wheeler market in 1998-1999:

SL No.	Brand/ Make& Model	Units	Percentage
1.	Bajaj	806	4.77
2.	Zongshen	840	4.97
3.	Jianshe	150	.89
4.	Xingfu	1320	7.81
5.	Honda Pak	3800	22.49
6.	Jialing	1124	6.65
7.	Jincheng	1300	7.69
8.	Yamaha	2700	16
9.	Hero Honda	2032	12.03
10.	Samurai Suzuki	360	2.13
11.	Yamaha (Japan)	900	6.57
12.	Dayang	1110	5.33
13.	LML	450	2.66

3.1        Sales trend of main competitors in Two Wheeler market in Bangladesh:

Brand	98-99	%	99-00	%	00-01	%	01-02	%	02-03	%
Bajaj	806	5	2305	11	2920	13	6127	19
Hero Honda	2032	12	2084	10	2176	9.6	4987	15
Honda Pak	3800	22	3212	15	2000	9	2900	9
Jialing	1124	6.6	2260	11	3049	13	1575	5
Yamaha	2700	16	4700	22	3241	14	3835	12
Zongshen	840	5	1340	6.4	1200	5.3	1750	5.4
Dayang	1110	6.5	1220	6	1521	6.7	4140	13
Honda (Japan)	-	-	-	-	1100	5	1550	5
Yamaha (Japan)	900	5.3	1150	5.5	1000	4.4	1200	3.7
S. Suzuki	360	2	490	2.3	600	2.6	900	2.8

4.1.  Present price of different brands & models of Two- Wheeler:

Marketer	Brand	Model	CC	Price
Uttara Motors Limited	Bajaj	Croma	112	77,500
‘’	‘’	Caliber	112	73,500
‘’	‘’	Champion	100	71,500
‘’	‘’	Aspire	112	69,500
‘’	‘’	Boxer CT	100	61,500
‘’	‘’	Boxer AT	100	57,500
‘’	‘’	KB-125	125	60,000
‘’	‘’	M-80	80	41,500
‘’	‘’	Legend	150	69,500
‘’	‘’	Classic SL (ES)	150	64,500
‘’	‘’	Classic SL	150	60,500
‘’	‘’	Chetak	150	54,500
‘’	‘’	Super	125	42,500
Atlas Bangladesh Ltd.	Honda	Passion	100	76,500
‘’	‘’	Hero 100ss	100	70,000
‘’	‘’	Hero Sple.	100	74,000
‘’	‘’	CG 125	125	1,32,000
‘’	‘’	Honda XL	185	1,56,000
‘’	‘’	CD 80P	80	1,05,000
‘’	‘’	C-50 SWR	50	80,000
H.S. Enterprise	Jialing	JH 100	100	64,000
‘’	‘’	JH125L	125	70,000
‘’	‘’	JH 80	80	48,000
‘’	Jincheng	AX 100	100	64,000
‘’	Xinfu	XF125 A2	125	73,000
Marketer	Brand	Model	CC	Price
Karnaphuli	Yamaha	RX100	100	75,000
‘’	‘’	RX S 115	115	1,37,000
‘’	‘’	YB 100	100	1,05,000
‘’	‘’	YBX 125	125	82,000
Emma Motors	Jialing	HS 100	100	57,500
‘’	‘’	HS 125	125	70,000
‘’	‘’	HS 80	80	53,000
B/Desh Auto Manu.	Qjiang	QJ 100 4S	100	62,000
‘’	‘’	JQ 100 2S	100	64,000
‘’	‘’	QJ 125 A	125	70,000
‘’	‘’	QJ 100 U	100	85,000
Rupsha Trading	Zongshen	ED 80	80	53,000
‘’	‘’	EG 125	125	70,000
‘’	‘’	2S 50	50	43,500
Runner	Dayang	DY 125-7	125	70,000
‘’	‘’	DY 100-18	00	65,000
‘’	‘’	AD 80	80	53.000
‘’			50	43,000
Rian Motors	Suzuki	Samurai	100	76,900

5.1  Market potentiality of Bajaj motorcycle in Bangladesh market:

Market	Estimated Market Size (Per Month)	Average Sales of Bajaj  (Per Month)	Sales Potentiality  (Per Month)
Dhaka	500	100	100
Chittagong	200	16	40
Rajshahi	400	83	85
Khulna	250	60	70
Sylhet	200	12	40
Bogra	250	65	70
Jessore	400	90	90
Rangpur	200	35	40
Dinajpur	225	35	40
Others	100	15	35

5. Recommendations:

UML has achieved a significant market share in last half of the decade. Because of continuous positive growth in last three years sales target has been fixed 7,424 units for current financial year.

Though 7,424 units is a reasonable target for current financial year, we have to follow up our sales performance very closely, because rural and sub urban customers play vital role in Two- Wheeler market. As we know, agriculture and agriculture-based job are the main occupation of the rural and sub urban people employing above 60% of labor force of Bangladesh. So, Sales of Two- Wheeler might be declined in current financial year due to recent flood if we don’t take any preventive measures.

5.1. Develop confidence and innovative thinking:

Regardless of economic circumstances in Bangladesh we have to meet tomorrow’s challenges by maintaining confidence in our abilities and by developing the power of positive thinking.

5.2. Develop workforces:

We have to develop our sales work force by providing more opportunities for promotion, special assignment and in house training. The effectiveness of sales-force management is an important determinate of a company’s success because the sales force is directly responsible for generating an organization’s sales revenue.

5.3. Product Knowledge:

It is needless to mention, product knowledge is the main attribute to be a good sales executive. Without proper knowledge a sales executive doesn’t convince the customers to buy a product. In few cases our sales executives don’t have adequate knowledge to satisfy the customers through providing proper information regarding the products. To meet the tomorrow’s challenges we must have to develop knowledge of our sales team. 

5.4. Promotional activities: We have to take sales promotion activities, which employed to achieve company’s objectives. We may use sales promotion to achieve the following objectives

To induce new customers.

To introduce a new model of products.

To bring more customers in to retail stores/ showrooms.

To stabilize a fluctuating sales pattern.

To increase dealers inventories.

To offset competitor’s marketing efforts.

Sales promotion program can be taken in two ways:

Consumer sales promotion:  This method encourage consumer to buy a specific product.

Trade sales promotion:  It is stimulate dealers to handle a company’s products and to market these product aggressively.

5.5. Develop strength of weak branches:

Sylhet and Chittagong have achieved very poor market share, which are 12 and 16 units per month respectively. Market size is 200 units per month in above-mentioned two cities. That’s why we have to emphasis to enhance the market share. We hope, market share can be developed up to 40 units per month in mentioned cities by giving extra efforts.

5.6. After sale service:

After sale service plays an important role to develop brand loyalty. For long-term business we must develop brand loyalty. Customer satisfaction is the prime factor to build brand loyalty. That’s why we have to develop a several number of service center with modern equipment and sufficient parts all over the country, mainly Rajshahi, Bogra, Jessore including important cities/ towns to provide satisfactory after sale service to our valuable customers.

5.7. Appoint the new dealers:

We have to increase the number of dealers for two wheelers. In the mean time circular for “Two-Wheeler dealer appointment” has been published in “The Daily Ittefaq”. We expect, we can be completed the dealer appointment procedure within very short time. We positively hopeful, new dealers will play important role to maximize the company’s turnover by enhancing the sales volume.

Introduction

Origin of the Report

In today’s world education is not just limited to books and classrooms. Education now a day is understanding the real world and applying knowledge and education for the betterment of the society. Internship is such a course that helps to test the knowledge and understanding of the courses and to use them in a practical field. Internship gives this opportunity to be engaged in an organization where it is possible to have an experience of the real business world and to see different practical aspects of education.

IIUC is committed to produce leaders for the society who will not only benefit the society as a whole but also make path of a better future for the next generation. Internship of IIUC is a step towards fulfilling this commitment by giving the students an opportunity to get ready for the real world before they enter into it.

1.1 Objectives of the Report

There had been some objectives set forward in doing this report so that it can be determined what tasks to perform in the Uttara Group of Companies. These objectives were uninfluenced by thought or feeling. These objectives are described in the following:

To understand the general business procedure of  Uttara Group of Companies.

To understand the level of motivation among the employees of the Uttara Group of Companies.

 To learn the dedication towards work, time management, responsibility, and other managerial techniques that are needed to be a successful executive in the business world.

To understand the functions those are carried out by the Uttara Group of Companies and to understand the procedure in which these functions are carried out.

To suggest the management  with some recommendations so that the management can identify some of the faulty areas in the organization and initiate necessary steps to bring changes in those areas.

To produce a report that will give the advisor an understanding about the work, responsibilities, and performances of the intern in different aspects of the organization during the internship at Uttara Group of Companies.

To produce a report that will give a guideline to the future researchers or customers of the Uttara Group of Companies on the different aspects that are covered in this report.

1.2 Scopes of the Report

Scope of the report reveals the opportunities that were found in doing internship at Uttara Group of Companies Corporate Branch. It discusses different possibilities, options, or alternatives that were there while doing internship at Uttara Group of Companies. Those scopes of the report can be stated as follows:

Permission: The first light of opportunity while doing this report came when the university for doing internship gave the permission and all the assistance that might be required for the placement of the internship.

Time: There were two months time allotted for doing internship. This two months time was enough to fulfill the objectives that were set forward for doing the internship.

Placement: The placement of the internship was possible in the Uttara Group of Companies, Corporate Branch that gave the scope to gather the necessary experience, information and other things for doing the internship.

Advisor: In the university an advisor was selected to help assist with the necessary planning, controlling and monitoring of the internship program with his experience, knowledge and the integrity in this sector.

Performance: In the Uttara Group of Companies, it was possible to perform duties in the general business and the advance section and it gave the opportunity to have some first hand experience in the functions of the Company.

Colleagues: From time to time, it was possible to talk to the officers and know about there first hand experience on different aspects of the Company There was the opportunity to do a survey and gather information about the motivational level of the employees.

Documents: There were different documents and reports on the every sector, which had helped to have more in-depth understanding on different aspects of the Companies.

1.3 Limitations of the Report

There were a few limitations faced while reaching the objectives of this report. Some of these limitations are as follows:

Time: It took time for the arrangement of the internship in the Uttara Group of Companies Corporate Branch and as a result, few days were delayed in joining the internship in this branch. Since the joining was late, it there was lack of time in gathering experience, collecting information, analysis of information and to do other necessary tasks of completing the report.

Topics: the topics that are covered in this report are vast and varied. It is not possible to cover every aspects of the topic due to the dynamism and diversity of the subject.

Secondary Information: There was lack of proper secondary information on the Uttara Group of Companies. Few supports of books, journals, and other related documents have been found on the topics that have been covered in this report.

Confidentiality: Not all the officers of the Uttara Group of Companies were open-minded. They did not want to disclose many information due to confidentiality.

Talking to Officers: It was difficult to manage time from the officers for interview, information gathering etc. Most of the time, the officers were busy with their day-to-day work.

 Conception of Respondents: A questionnaire was prepared for the knowing the motivational level of the employees of the Uttara Group of Companies Corporate Branch. Some of the respondents of the questionnaire did not have clear conception on the topics they were responding.

Experience: There was lack of experience in collecting information, doing survey and taking interview of the employees. However, as time passed by many of these limitations faded.

1.4 Methodology

In order to fulfill the objectives of the report, make maximum utilization of the scopes and to avoid the limitations as much as possible certain methodology was followed for this report. The steps of information collection is described in the following:

For collecting data on the general business system of Uttara Group of Companies, there were two main sources of collecting information. These are:

Primary Sources: is the first hand information that was collected from the Uttara Group of Companies, Corporate Branch. For the primary sources of data collection observations, open and group discussions, and interviews were used.

Secondary Sources: beside the primary source, secondary source of information was also used for data collection. The methods of secondary sources were different handouts provided by the Uttara Group of Companies.

2.0 Company Profile

2.1 Introduction:

Uttara Group of Companies was established in March 1972. The Group is one of the leading industrial, trading and agency houses and also represents country’s largest automobile sector. Uttara Group of Companies (UGC) a private limited company offers wide – range of multi-disciplinary trading and marketing services is aimed at and fully geared to achieve a sustainable break-through in the business world. The trading sector mainly holds the distributorship of Japanese and Indian origin automobile manufacturers and various types of basic vehicles, which contribute and fulfill the demand at a large, extend of country’s transport and communication sector. The industrial activities fairly includes assembling of Trucks, Buses, Auto-rickshaw, Motor Cycles and Manufacturing of Luxury Coaches and exports of Apparels, Knit Wear, Sewing thread.

Uttara Group is deeply committed to fulfill customers’ demand and cares about consumers’ desire & taste. Placing emphasis on this important aspect UGC has initiated a new edge of business activities bridging a two–way traffic between the manufacturers and the ultimate consumer in the present competitive world market. To protect valued customers’ interest, saving, safety, security, comfort and satisfaction the Group has also introduced insurance and investment financing scheme.

To fulfill missions’ objectives Uttara Group represents the following companies, which are currently involved in exporting, importing, general trading, manufacturers representation, distribution, sole agency, insurance and financing.

2.2 Nature of Business:

Govt. approved automobiles marketing company, Sole Distributor of Isuzu, Suzuki Vehicles from Japan and Bajaj, Swaraj Mazda & Maruti Vehicle from India. Parts & Accessories, Sawafujii & Suzuki generator from Japan, Scott & English industrial generator from Singapore & G.S. battery from Indonesia.

2.3 Aim of Uttara Group of Companies:

The sky is not the limit for them but their expectations are within limit. Their imagination soars beyond conventional barriers. They share their destiny with their beloved motherland. They want to serve her the better in the greater quest for national economic emancipation.

2.4 Uttara Group of Companies and their way:

To a seasoned trekker, the path is never too arduous. They believe in progress, in destiny and service through entrepreneurship. They are merchants and missionaries, doers and dreamers, entrepreneur and experts. They are futuristic with emphasis on creative and dynamic activity.

2.5. Growth and development of Uttara group of companies:

Uttara Group of companies is one of the large groups of company in Bangladesh. They work for the objective, policy and some rules, so that they achieve a position in marketing their products in Bangladesh.

2.6 Corporate Office

39 Dilkusha Commercial Area

Dhaka-1000

Bangladesh.

Tel: 880-2-9555280, 9564163, Fax: 880-02-9565172, E-mail: uttaragp@citechco.net

2.7 Corporate Management

Mr. Matiur Rahman                         -           Chairman & M.D.

Mr. Mujibur Rahman                                  -           Deputy Managing Director

Mr. Durand Mehdadur Rahman    -           Deputy Managing Director

Mr. Rafiqur Rahman                                   -           Director

Mr. K. I. Hossain                                           -           Executive Director

Mr. Anup Kumar Barua                              -           Director (Apparels)

Mr. Shahidur Rahman                                 -           Director (Knitting & Dyeing)

Mr. S. A. Humayun Ahmed             -           Director (Technical)

Mr. Mir Mohammed Hossain                      -           Director Marketing

2.8 Production Lines:

Assembling & Manufacturing:

3-Wheeler Bajaj Auto-rickshaw.

2-Wheeler Bajaj Motor Cycle

Isuzu Commercial Vehicle

Swaraj Mazda Commercial Vehicles

Sole Distributor:

Suzuki Vehicles

Maruti Vehicles

Bridgestone Tyre

Isuzu Vehicles

Swaraj Mazda Vehicles

Re-treading Tyre.

Sawafuji, Suzuki & Scott English Generator

GS Battery Indonesia

Manufacturer:

Knit Fabrics

Knit Garments, Woven Garments

Sewing Thread

Pharmaceuticals

2.9 Overseas Principals:

Isuzu Motors Ltd., Japan                             :           Assembler / Distributor

Suzuki Motors Ltd., Japan                          :           Distributor

Bridgestone Corporation                             :           Distributor

Mitsui & Co., Japan                                     :           LocalAgent (Trading)

Itochu Corporation Ltd., Japan                  :           Local Agent (Trading)

Sawafuji Generator Ltd. Japan                  :           Distributor

Suzuki Generator Ltd. Japan                      :           Distributor

Bajaj Auto Ltd., India                                  :           Assembler/ Distributor

Swaraj Mazda Ltd., India                            :           Assembler / Distributor

Maruti Udyog Ltd., India                             :           Distributor

Pak Suzuki Motor Co. Ltd                           :           Distributor

2.10 Concern of the Group

Eastern Motors Ltd.

NIB House, 32 Agrabad Chittagong.     

Chittagong

Legal Form          :           Private Limited Company

Establishment Year       :        1952

Nature of Business:

Sole Distributor of “Bridgestone” brand tyres and tubes from Japan.

Uttara Motors Ltd.

39, Dilkusha C/A

Dhaka-1000                                     

Bangladesh                             

Legal Form                            : Private Limited Company

Establishment Year       : 1973

Nature of Business:

Govt. approved automobiles marketing company, Sole Distributor of Isuzu, Suzuki vehicles from Japan and Bajaj, Swaraj Mazda & Maruti vehicles from India. Parts & Accessories, Sawafuji & Suzuki Generator from Japan, Scott & English industrial Generator from Singapore & G.S. Automotive battery from Indonesia.

Menoka Motors Ltd.

39-Dilkusha C/A

Dhaka-1000                                   

Bangladesh                            

Legal Form                    : Private Limited Company

Establishment Year                : 1979

Nature of Business:

Assembler of Bajaj 3-wheeler and  Bajaj Motor Cycle from India.

Uttara Tyre Retreading Co. Limited

39-Dilkusha C/A,

Dhaka                                              

Bangladesh.                           

           

Legal Form                            : Private Limited Company

Establishment Year       : 1989

Nature of Business:

American “BANDAG” brand Tyre cold process Retreading plant in Bangladesh under exclusive franchise of USA.

Uttara Apparels Ltd.

39-Dilkusha C/A

Dhaka-1000                                   

Bangladesh.                           

Legal Form                            : Private Limited Company

Establishment Year       : 1991

Nature of Business:

100% export oriented apparels factory.

Uttara Knitting & Dyeing Ltd.

39-Dilkusha C/A

Dhaka-1000                                   

Bangladesh.

Legal Form                            : Public Limited Company

Establishment Year       : 1994

Nature of Business:

Manufacturer of 100% export oriented Quality Knit Fabrics with Dyeing and Finishing facilities.

07.

Uttara Hongkong JVC Ltd.

23, Paribagh (2nd Floor)

Sonargaon Road

Dhaka-1000                                   

Bangladesh.

Legal Form                            : Private Limited Company JV                        

Establishment Year       : 1994

Nature of Business:

Manufacturer of sewing thread for export to garments industries.

08.

Uttara Finance & Investments Ltd.

10 - Dilkusha C/A, Jiban Bima Tower,

Dhaka-1000                                   

Bangladesh.                           

Legal Form    : Public Limited Company

Establishment Year       : 1995

Nature of Business:

Lease Finance, Investment & Merchant banking.

09.

          Uttara Services Ltd.

124-North Begun Bari

Tejgaon Industrial Area

Dhaka                                              

Bangladesh.                            

Legal Form                            : Private Limited Company.

Establishment Year       : 1996

Nature of Business:

Automotive Vehicle Repairing & Servicing

10.  

         Uttara Exchange & Securities Ltd.

Pedrollo Plaza

5-D Jubilee Road

Chittagong

Bangladesh

Legal Form                            : Private Limited Company.

Establishment Year       : 1996

Nature of Business:

Member of Chittagong Stock Exchange and deal in Public Limited company shares.

11.

Hallmark Pharmaceuticals Ltd.

124-North Begun Bari

Tejgaon Industrial Area

Dhaka                                              

Bangladesh                            

Legal Form                            : Private Limited Company

Establishment Year       : 1997

Nature of Business:

Manufacturer of Medicine.

12.

Uttara Properties Ltd.

39-Dilkusha C/A

Dhaka-1000                                   

Bangladesh.                           

Legal Form                            : Private Limited Company.

Establishment Year       : 1997

Nature of Business:

Real estate business

13.

Uttara Knitwears Ltd.

39, Dilkusha C/A

Dhaka-1000                                   

Bangladesh.                           

Legal Form                            : Private Limited Company

Establishment Year       : 2000

Nature of Business:

Manufacturer of 100% export oriented Knit Garments.

14.     

           Uttara Automobile Manufacturers Ltd.

39-Dilkusha C/A

Dhaka-1000                                   

Bangladesh

Legal Form                            : Private Limited Company.

Establishment Year       : 2002

Nature of Business:

Manufacturer of Isuzu Pickup Cabin and Swaraj Mazda Truck Cabin.

15.      

Uttara Motors  Corporation Ltd.

 Plot No, A-6, A-7

 BSCIC, Industrial Area, Bogra

 Bangladesh

Legal Form                            : Private Limited Company.

Establishment Year       : 2005

Nature of Business:

Assembler of   Bajaj Motor Cycle from India.

2.11 Human Resources:

Company Name          Male    Female Total

Uttara Motors Limited            237      9          246

Uttara Automobiles Ltd.        66        1          67

Uttara Tyre Retreading Co. Ltd.        47        -           47

Uttara Finance & Investment Ltd.     13        2          15

Uttara Hongkong JVC Ltd.    23        4          27

Uttara Exchange & Securities Ltd.    15        -           15

Uttara Knitting & Dyeing Ltd.           390      1          391

Uttara Apparels Ltd.   310      540      850

Uttara Services Ltd.    55        3          58

Uttara Properties Ltd. 9          1          10

Hallmark Pharmaceuticals Ltd.          124      3          127

Eastern Motors Ltd.    40        -           40

Menoka Motors Limited         246      -           246

Uttara Knitwears Limited       80        300      380

Total:  1,655   863      2,518

2.12 Branches:       

        Chittagong:   

880-031- 724402, 724957,

715342

        Sylhet:           

            880-0821- 717782, 761173,

            Mobile: 017- 881038

        Rajshahi:       

880-0721- 773741, 773682,

            Mobile: 017- 881036

        Bogra:           

880-051- 6360, 72547,

            Mobile: 017- 881037

        Khulna:         

880-041- 725952,

        Jessore:          

880-0421- 64087, 72710,

        Cox’s Bazar:

880-0341- 63555

        Dinajpur:      

880-0531- 64687

        Pabna:           

880-0731- 64690

        Rangpur:       

880-0521- 62922

        Barisal:          

880-0431- 55349

2.13 Financial Structure     

(In Million Taka)

Year	1999-2000	2000-2001	2001-2002	2002-2003
Capital
Paid-up	206.98	196.98	212.98	212.98
Annual Turnover	2123.49	3069.98	3487.54	6121.26
Annual Profit	194.72	392.65	451.55	544.84
Net Asset	1417.33	1490.20	1568.44	1646.86

2.14 Commercial and Passenger Vehicles Sales Profile:

Vehicle TYPE	PRODUCTS	YEAR (UNITS)
		2000-01	2001-02	2002-03	2003-2004
Passenger Cars	SUZUKI BALENO 1600 CC		1	5
	SUZUKI LIANA		1	37	45
	MARUTI 800 CC CAR	63	38	59	79
	MARUTI GYPSY			6	5
	MARUTI SUZ. ALTO 1000 CC	12	4	2	2
	MARUTI ESTEEM 1300 CC	14	6	8	10
	MARUTI SUZUKI WAGON 'R'			20	67
	MARUTI SUZUKI ZEN 1000 CC			17	36
	MARUTI VARSA			10	20
	MARUTI ALTO SPIN			15	18
SUB TOTAL		89	50	179	282
Four Wheel Drives	SUZUKI G/VITARA 3 DOOR	2	3	8
	SUZUKI G/VITARA 5 DOOR	2	2	2	6
	SUZUKI IGNIS	5	13	3	2
	ISUZU TROOPER	4		1	1
SUB TOTAL		13	18	14	9
Pickups	SUZUKI RAVI PICKUP	10	8	26	30
	SUZUKI RAVI CARRY CAB	74	62	58	21
	SUZUKI RAVI COVER VAN	4	28	11	4
	ISUZU PICKUP	54	52	16	7
	ISUZU PANTHER CARRY CAB		2
	ISUZU HUMAN HAULER			16	3
SUB TOTAL		142	152	127	65
Microbus	MARUTI OMNI (MICROBUS)	14	9	29	53
	MARUTI OMNI (AMBULANCE)		1	2	1
SUB TOTAL		14	10	31	54
Minibus	ISUZU NPR MINI BUS	35	109	58	72
	ISUZU NKR MINI BUS	49	181	165	102
	SWARAJ MAZDA MINI BUS	26	44	62	16
SUB TOTAL		110	334	285	190
Bus	ISUZU MT BUS	69	65	42	37
	ISUZU LT 133 P BUS			2	6
SUB TOTAL		69	65	44	43
MiniTruck	SWARAJ MAZDA M/T	178	234	161	205
SUB TOTAL		178	234	161	205
Trucks	ISUZU NKR TRUCK	12	37	30	35
	ISUZU FSR TRUCK	5	26	3	8
	ISUZU NKR DELIVERY VAN	10	6		1
SUB TOTAL		27	69	33	44

3.0 Automobile industry sector in Bangladesh

While assessing the demand and supply of auto parts and components in Bangladesh, it is essential to analyze the users, their usage habits and requirements and other related aspects of auto parts and components. The automotive sector that uses various parts and components in Bangladesh comprises of both imported and locally assembled vehicles. In estimating the overall demand and supply of auto parts and components, it is important to critically look into the existing scenario of automobile industry in Bangladesh since these two things are inter-related and positively correlated.

3.1 Existing scenario of automobile industry in Bangladesh

Bangladesh does not have automobile industry worth the name except the single government owned agency i.e. Progati Industries Limited involved in assembly of CKD/SKD automobiles.

Over the last two decades, particularly since 1985, the use of various types of vehicles has shown a definite increased trend. Reasons are many, namely, increased income of particular segment of people, availability of financial support, improved roads and high ways, increased level of economic activities, increased mobility of people from one place to another in search of jobs, increased volume of trade, commerce and export, etc.

It may be mentioned here that only the export oriented ready made garment and textile industries required a large number of various types of vehicles stating from heavy duty carrier, pickup van, truck, etc. to motor cars. This single largest sector needs various types of vehicles for various purposes and account for about 65% of the country's commercial transport requirements.

Increase in the mobility of individual people has also resulted in a tremendous increase in the use of various light motor vehicles. There are few assembling houses that assemble small quantity of vehicles compared to the total demand of the country.

Most typical character of Bangladesh automobile sector is that there is a wide variety of brands and the countries of origin mainly include countries like Japan, India, South Korea, China, Germany, France, Malaysia, UK and USA. Following brands of vehicles are now available in the local market that require different types of parts and components on regular basis:

Table 1: Different brands of vehicles in Bangladesh

Products category	Brand names
Heavy Bus	Hino, Mitsubishi, Isuzu, Volvo, Tata, Ashok Leyland, etc.
Mini bus	Hino, Mitsubishi, Isuzu, Toyota, Sawraz Mazda, Tata, Richer, etc.
Microbus	Nissan, Mitsubishi, Toyota, etc.
Heavy truck	Hino, Tata, Bed Ford, Isuzu, Ashok Leyland
Mini Truck	Hino, Tata, Mitsubishi, Isuzu, Toyota, Richer,  Sawraz Mazda, etc.
Motor Car	Toyota, Mercedes Benz, Nissan, Mitsubishi, Ford, Suzuki, Dewoo, Proton Saga, Proton Vira, Hyundai, BMW, Maruti etc.
Four wheels	Toyota, Tata, Mitsubishi, Nissan, etc.
Auto tempo	Bajaj, Krishan
Scooter	Bajaj, Krishan
Motor-cycle	Honda, Xingfu, Jialing, Jangshen, Yamaha, Suzuki, Hero, TVS Victor, Bajaj, Vespa, etc.
Light & heavy commercial vehicles	Nissan, Dewoo, Huyandi, Volvo, Ashok Leyland, Tata, Hino, Mitsubishi, etc.
Farm and agricultural vehicles	Hyundi, Dewoo, Dongfang, Dongchang, etc.

Basically, parts and components are required for the above types of vehicles from countries of origin or from other reliable sources. Use of parts and components has a positive co-relation with number of vehicles in use in the country. During the last five years, the following vehicles were imported in Bangladesh

3.2     Factors influencing increase in demand of automobile

Factors influencing increase in demand of vehicles are as below:

Government annual  development plan has  given priority on transport and communication
development;

Government has introduced effective transport policy in its five-year plan;

Availability of financial support from formal and informal sources. Formal sources are banks, leasing companies, purchases companies, renal companies etc;

Encouragement of the private sector to make investments in automobile industry;

Promulgation of laws to make the importation of vehicles at cheaper price (duty and taxes reduced to import new vehicles);

Improved roads and highways and increased number of bridge and culverts;

Improved life style in the urban areas;

Alternative and cheaper means of fuel, like natural gas;

Adaptation of improved technology in agricultural activities/cultivation activities.

There has been an increasing trend in the use of all sorts of automobiles/vehicles in Bangladesh. However, the increased demand of individual types of automobile varies from case to case. For example, the use of motor cars for personnel and official movement has increased at a higher rate than other types of vehicle. Also, the use of urban commercial vehicles has also increased at a higher rate to meet increased requirements. These trends are expected to continue in future.

3.3 Comparative scenario of different types of automobiles in Bangladesh

A comparative scenario of different vehicles and their usage trend may be explained as below:

(a)       Motorcycle

There is an increasing trend in the use of motorcycle in Bangladesh by a new group of users. Traditionally, students, individual businessmen, officials of marketing companies and pharmaceutical industries use motorcycles. Over the last one and a half decades, the field level officials of different non- government organizations have been using a large number of motorcycles. Also, there are some occasional uses of motorcycle like election campaign and other national and social program. In Bangladesh, both locally assembled motorcycle and imported motorcycle are available for intending users as detailed below:

(i) Locally assembled motorcycle: Mainly, there are about 20 locally   assembled brands. For example, ATLAS, EMMA, NITOL and SINGER. List of the local motorcycle assembling houses is given in the annex.

(ii) Imported motorcycle: There are at least 7-8 different regular brands of motorcycle and these are: Honda CD 80, Yamaha, Suzuki from Japan, Xinfu, Jangshen, Jailing, Hero, TVS Victor, Yamaha, Suzuki, Bajaj, Vespa, etc.

Motorcycle is extensively used in Bangladesh in both rural and urban areas. The use of motorcycle has gradually increased in Bangladesh due to several reasons as mentioned below:

Easy to drive;

Easy access to remote location;

Cheapest transport;

Longevity of the vehicle;

Easy to handle and park at any place.

While assessing the future demand of motorcycle, we observe that there is an increase in the use of motorcycle facilitated by the present trend of economy and the changed behavior of the target users. Key factors influencing the market demand of motorcycles are:

Withdrawal of three wheelers by the Bangladesh Government creating more demand for motorcycle by certain segment of people;

Improved roads and high ways;

Availability of leasing finance facilities by almost all leasing companies, banks and financial institutions.

At present, there are a limited number of producers of spare parts of motorcycle in Bangladesh. Therefore, the major spare and parts are imported form different countries like Japan, China, India, Pakistan, Italy, England, America, Germany, etc.

b)      A uto rickshaw / Three wheelers

There has been a tremendous increase over the past two decades in the number of auto rickshaw and tampoo in Bangladesh to compensate for inadequate number of commercial buses, minibuses, etc. Now, it is an important vehicle in Bangladesh. Low and middle class family members mainly use these vehicles. But, the government of Bangladesh has already banned these two vehicles to avoid environmental pollution. It is estimated that presently there are 160,000 auto rickshaws including unauthorized units in Dhaka City alone. There has been a phenomenal.-

However, effective 1^st September,2002, the two stroke auto rickshaw will be totally banned, which is expected to dramatically reduce the requirement of parts for these type of vehicles, but increase demand for the new CNG auto rickshaw andthree stroke auto rickshaws will be there with increased demand for parts and components.

(c) Motorcars

Increased demand, economic development and changed life style have resulted in a great increase in the number of motor cars and the demand for motor cars is still increasing day by day. Both brand new and reconditioned cars are imported into the country. Statistics show that majority of the people usually prefer reconditioned motorcars more than brand new cars due to lower price.

In Bangladesh, more than 65% of the total motorcars are coming from Japan. Many Bangladeshis living in Japan involve themselves in reconditioned car business. Recently, the government has put an age restriction on the import of reconditioned motor cars. Reconditioned cars more than 3 years old can not be imported.

The government has also reduced the duties and taxes on the import of new cars to discourage reconditioned car import. Impact is that people now can buy new cars at a reasonable price having longer durability. The government has introduced new system of taxicab in 1998. As a result, the number of motorcars has been increasing. But, the requirement of spare parts and components will be lesser. Again, after the 1^st September 2002, the ban of auto rickshaw will lead to a significant increase in motorcars mainly in the form of taxi cabs. Use of motorcars has increased tremendously, which is evident from the statistics for the last five years shown in the chart below:

(d)       Light & heavy commercial vehicles (bus, minibus, truck, pick-up, etc)

Like the motorcar, there has been an increasing trend in the number of light and heavy commercial vehicles that include mini bus, bus, human howlers, passenger carriers, trucks, pick-ups, covered vans, large covered vans, etc. Over the last one decade, the use of these types of vehicles has increased at a high rate. This is due to increased demand for the these types of vehicles/automobiles effectively backed by institutional financial support to procure them. This growth rate will continue to increase in the near future. The average growth rate is 5.63% and 4,644 in the number of vehicles annually.

(e)   Farm and agricultural equipment/vehicles

Also, there is an increasing trend in the number of farm and agricultural equipment/vehicles due to increased application of modern tools and techniques in farming and agricultural production. Now-a-day, agricultural vehicles like power tiller, tractor and trailers are being used in the rural areas more frequently than the past. During the last one decade, various agricultural development projects funded by the different donor agencies have been implemented in the rural areas and under those programs, the farmers were given financial facilities through NGOs and banks to procure modern agricultural equipment including farm vehicles. Traditional cow based cultivation method is giving away to mechanized farming in the rural areas of Bangladesh. One of the key elements that made this possible is the availability of lease financing facilities in the country and the large amount of agricultural credit funds. It has been observed that there is a reasonable growth in the number of agricultural equipment every year. This growth rate will continue to increase in the near future provided there is no drastic change in the government policy relating to agricultural sector like reduction in the subsidy and assistance and low cost fund for the farmers. The average annual growth rate is 2.5% and 125 in number of vehicles every year.

3.4  Estimated demand of automobile /vehicles in Bangladesh

Taking into consideration the future prospects and also keeping the resent growth pace influenced by various elements discussed earlier, it is expected that there would an additional increase in the use of vehicles. In view of the possible new avenues and prospects and looking into the weighted average growth rate of 6%, table below shows estimated demand for the next five years.

Table 2: Projected demand of automobile /vehicles in Bangladesh

Vehicle/Year	2002-03	2003-04	2004-05	2005-06	2006-07
Two & Three Wheelers
Taxi	2,570	2,724	2,887	3,060	3,243
Auto-rickshaw/three wheeler	130,766	143,842	158,226	174,048	191,452
Motor-cycle	201,116	211,171	221,729	232,815	244,455
Light & Heavy Commercial Vehicles
Bus/ Minibus	32,461	34,084	35,788	37,577	39,455
Micro-bus	19,762	22,133	24,789	27,763	31,094
Trucks	53,977	57,215	60,647	64,285	68,142
Jeep	11,197	11,420	11,648	11,880	12,117
Car	79,578	86,740	94,546	103,055	112,329
Farm & Agricultural Vehicles
Tractor	3,646	3,791	3,942	4,099	4,262
Trailers	2,030	2,070	2,111	2,153	2,196
Others	18,051	21,300	25,134	29,658	34,996
Total	555,154	596,490	641,447	690,393	743,741

3.5   Regulatory environment and the role of the Government

After independence in 1971, the country had to follow the rules and regulations of the then Pakistan government. Even soon after 1971, the same rules and regulations were followed with slight modification. Before 1982, the government did not effectively control the sector to the extent now it is. However, the regulatory body needs reforms and restructuring to bring efficiency and dynamism in day-to-day work. Effective program to modernize and expansion the regulatory body has become indispensable to handle the expanded activities in the total transport sector. They are mainly concerned with the environmental impact, registrations of vehicles, road and route permits; licensing of vehicles; and vehicle fitness for plying on roads, etc.

4.0  Auto parts and components industry in Bangladesh

As Bangladesh have no automobile industry, the sector is totally depended on import, except a few automobile-assembling units. Every year number of automobile is increasing due to increased requirement, demand as well as increased population. The sector has growth potentials.

Consumption of auto parts depends on several factors. There is a numerous types of auto parts being used by different types of automobile. Some parts have very short usage time and some have longer usage time. In Bangladesh, since there is no automobile manufacturing plant, there is not enough producers of auto parts. However, there is an area in southern part of Dhaka City where there are few indigenous auto parts manufacturing units. These parts are required for the exterior purpose but not for the important and critical interior purpose. These are limited to horn, light, glass, mirror, etc.

Total demand for parts and components will increase in future because of increased use of vehicles on roads, which has to be met by imports and import only.

 The projected demand of auto parts of various types of vehicles are estimated below: Supply and demand survey on automotive components - Bangladesh

Table 3: Projected demand of auto parts import in Bangladesh

(OOP' Taka)

Parts/Year	2002-03	2003-04	2004-05	2005-06	2006-07
Chassis with engine for tractor etc	620,774	664,228	710,723	760,473	813,706
Body for tractor, passenger car, etc.	29,214	32,135	35,348	38,882	42,770
Parts and accessories of tractor, goods vehicles etc.	78,346	92,448	109,088	128,723	151,893
Motorcycle/auxiliary motor fit	1,776,157	2,095,865	2,473,120	2,918,281	3,443,571
Invalid carriage, mechanical propel	5,218	6,157	7,265	7,464	8,807
Part/and accessory of motorcycle etc.	79,377	93,664	110,523	130,417	153,892
Total	2,589,086	2,984,497	3,446,067	3,984,240	4,614,639

4.1  Structure of the auto parts market

The parts and components market in Bangladesh is almost 100% import based. There is no quality local manufacturer of parts and components. So, several groups of importers of parts and components are there that include commercial importers, automobile assembling houses, public sector institutions and diplomatic importers. In Bangladesh, parts and components are mainly imported from countries like Japan, UK, Taiwan, China, Korea, Malaysia, USA, India, Indonesia, Pakistan, etc.

The market of parts and components is very small but expanding rapidly. Commercial importers facilitate bulk quantity import of parts that are distributed through wholesalers and retailers. End users get the parts from the retailers and the retailers buy parts from the importers. However, there are also importers who have their own retail outlets. An assembler may also be an importer who requires a large quantity of parts and components for its assembling unit. A limited number of commercial importers import parts and components from different sources as mentioned above.

In most cases, the assembler imports parts and components from the country where the brand is originated. Some assemblers even purchase parts and components directly from the big importers. There is another group within the distribution channel of parts and components i.e. auto servicing centers like garage, mechanical workshop, body building units, etc. The servicing centers purchase parts from the whole seller as well as from the retailer. End users get parts and components from retailers dealing in different type and brand of automobile. Although no local manufacturer of quality parts does exist, but active negotiations are going on to set up joint venture parts and component manufacturing units with China, Korea and Taiwan. Present structure of parts and components market is graphically shown below:

In Bangladesh, neither we have an automobile industry nor a quality auto parts industry. So, the people of Bangladesh have no clear idea about the automobile industry or auto parts and components and their usage. The market of auto parts and components is influenced by couple of elements. People while purchase auto parts and components, they are influenced by several factors and these auto servicing centers, workshop and garage, motor pool managers, Institutional Importers (i.e. embassy), retailers, agents of branded automobile, etc.

4.2   Foreign exporters of automobile components

The automobile market in Bangladesh has been dominated by the multinationals from Japan, Korea, China, India, and Europe since independence. Still the multinationals play significant role to meet the demand and supply and occupy a large market share in comparison to their number. Over the last couple of years, some automobile importers like Nitol Motors, Uttara Motors, Aftab Vehicles, Ifad Autos, Meghna Vehicles, Navana Vehicles, etc. have enter the local market. But, as our local automobile market are 65% dominated by Japan, we continue to import a large share from Japan. There is large market for the exporters of automobile parts and components of the participating countries as the local industry is based on the imported components.

4.3  Domestic parts and components industry

1.          Domestic parts and components industry

Presently, there is no well-organized and quality manufacturer of parts and components in Bangladesh. Some low quality indigenous manufacturing of parts and components are there but they are carried out against specific order to meet emergency requirement. There is no mass production to meet the requirements. Given below are some idea of what the local manufacturers try to produce:

Filters, radiators, radiator hoses, air filter housing;

Brake pads, brake drum, brake disc;

Electrical parts such as battery, horn, wiring, wiper and washer assembly, head lights and other lights;

Trim and upholstery such as carpet, floor mat, rear parcel shelf, seat assembly, safety belt and melt damping sheet;

General parts such as paint and thinner, under seal, tyres and tube, and mirrors.

4.4  Import policy and procedures

Government is committed to foster a gradual development of free market economy in the light of GATT agreement. In the interest of export promotion and investment in the country, Bangladesh have long term, stable, facilitative and liberal Import Policy. Efforts have been made to make the Import Policy easier and more liberal by relaxing or rescinding the regulatory provisions of the previous Import Policy. Provisions have already been made to allow import of capital machinery and industrial raw materials on consignment basis without the cover of the Letter of Credit. In the present Import Policy Order second hand / reconditioned machinery are importable subject to fulfillment of certain conditions. Gradually efforts will be made to classify those machinery under HS Code.

4.5 Rules and regulations on imports

For import purpose, the new ITC Numbers (HS Code) can be uses with at least six digits corresponding to the classification of goods as given in the Import Trade Control Schedule 1988, based on the Harmonized Commodity Description and Coding System, shall be mandatory.

Import of any goods or machinery in Bangladesh will be done according to certain rules and regulations as laid down in the "Imports and Exports (Control) Act, 1950". Parts, accessories or component, import of which is otherwise banned or restricted, shall however, be importable along with machinery item is permissible for import.

Manufacturing age of the used reconditioned vehicles must not be more than three years at the time of shipment. In case of determining the date/age of the concerned vehicles, the age of the vehicles shall start counting from the first day of the next year of manufacturing. In case of vehicle made in Japan, the date of manufacturing shall be determined from the chassis book, published by the Japan
Automobile Association. In case of import of vehicles made in other countries where chassis book is not published, importer shall submit a certificate regarding the date of manufacture of vehicle from an internationally reputed surveyor firm.

Commercial import of second hands/reconditioned engines and gearboxes of bus, truck, mini – bus and macro bus will be permissible. But such engine and gearboxes shall not be permissible for import if they are more than five years old. In this case a certificate regarding age-limit, either from exporting country's recognized Chamber of Commerce & Industry or from an internationally
reputed surveyors shall be submitted to the customs Authority at the time of release of the goods.

Following documents along with the LCA must be submitted to the nominated banks by the importers:

L/C application form duly signed by the importer;

indents for goods issued by indent or a pro forma invoice obtained from the foreign supplier;

insurance cover note.

4.6  Government regulations on imports

(a)        Pre-shipment inspection

Unless otherwise specified, pre-shipment inspection of imported goods shall not be obligatory in case of import by the private sector importers.

(b)        Import procedures

(i)       Import License not required: No import License will be necessary for import of   any item;

(ii)       Import against LCA Form: unless otherwise specified, all imports transacted through a bank (L/Cs, bank drafts, remittances etc.) shall require LCA form irrespective of the source of finance;

(iii)      Import against L/C: Unless otherwise specified, import shall be made only by opening irrevocable letter of credit (L/C);

However, L/C is not required for import of each consignment, by road, of easily perishable item valued form $US 5,000 to 7,500 and for import of capital machineries and raw-materials for industrial use without any price limit. Existing conditions regarding import on deferred payment under L/C shall be applicable in this case also and importer shall be required to register with Bangladesh Bank for importation without  L/C.

(iv)      Import against LCA Form but without opening of Letter of Credit (L/C): Import against LCA Form may be allowed without opening of letters of credit;

(v)       Import on deferred payment basis or against supplier's credit: Subject to restriction and prohibitions contained in this order, import on deferred payment basis or against suppliers. Credit may be allowed on the basis of procedure laid down by the Bangladesh Bank in this behalf;

(vi)       Import against direct payment abroad: Only Bangladeshi nationals living abroad may send any importable item irrespective of value ceiling against direct payment abroad in the name of any Bangladeshi living in Bangladesh. The name and address of the consignee shall be mentioned in the import documents. For such import, no permission or import permit from the Import Control Authority shall be necessary;

(vii)      Document required to be submitted along with LCA Form: Importer in both public sector and private sector shall submit to their nominated banks the following documents along with the L/C Authorization Form for opening letter of credit:

L/C application form duly signed by the importer;

Indents for goods issued by indent or a pro forma invoice obtained from the foreign suppler, as the case may be;

Insurance cover note;

 (viii)   Auditioned documents to be furnished by public sector importers: In addition to the documents mentioned above, the following document will be required. The attested photocopy of sanction letter from the Administrative Ministry or Division or Authority, wherever applicable;

(ix)     Additional documents to be furnished by private sector importers: In addition to the document mentioned above, the following documents will be required.

4.7 Categories of importers and eligibility criteria for issuance of import license

Generally, there are three categories of importers are in Bangladesh. To import automobile, the importers have to have the following criteria:

1.          Foreign firms

Foreign firms are allowed to import permissible commercial items against prior permission from the Chief Controller of Import and Export and need to provide following documents:

Photocopy of the valid Import Registration Certificate;

Photocopies of invoices, bill of lading, and import permit duly certified by the bank;

Original or copy General Index Register (GIR) certificate from Income Tax Authority;

Certified copy of the last income tax assessment order; and

Name and description of each item to be imported with quantity and C&F value.

2.          Public sector importers

Public sector importers need to provide the following documentation:

Attested photocopy of allocation letter issued by the allocating authority in favor of the concerned public sector agency specifying the source, amount, purpose, validity, and the terms and conditions;

Attested photocopy of sub-allocation letter, if any, issued in favor of the importing agency or unit;

Attested photocopy of sanction letter from the administrative ministry or authority where applicable; and

A declaration by the authorized officer of the importing agency indicating the amount of utilized/unutilized government funds and that imported raw materials will not be sold.

3.         Private sector importers

Private sector importers need to furnish the following additional documents:

Valid membership certificate from the registered local chamber of commerce and industry or any trade association, established on an all-Bangladesh basis, representing any special trade or business;

Proof of payment of renewal fees for the Import Registration Certificate (IRC) for the concerned fiscal year;

Copy of a "TIN Certificate" issued by the tax authority. The TIN (Tax Identification No.) Certificate is a new requirement aimed at ensuring collection of income tax, VAT and other revenues from importers;

A declaration, in triplicate, that the importer has paid income tax or submitted an income tax return for the preceding year; and

Any such documents as may be required by import policy order or public notice, or instruction issued by the Chief Controller of Imports and Exports.

 Uttara Motors Ltd, A Market Leader:

Automobile market is a booming market in Bangladesh & Uttara Motors Ltd. is no doubt the market leader. Uttara Motors Ltd. is the largest automobile Seller, importer, assembler & distributor in Bangladesh. It has 12 brand by all or the country & more then 75 nos. dealers working under every branch Uttara Motors Ltd. covers a lot of famous brand, like "Isuzu" & "Suzuki" vehicle has been imported from Japan, "Maruti Suzuki", "Bajaj", "Swaraj Mazda" has been imported from India Pack Suzuki from Pakistan.  An early research showed that the main products of Uttara Motors Ltd. 

2-Wheeler       – Bajaj

3-Wheeler       – Bajaj

Cars                 – Suzuki & Maruti Suzuki

Jeeps               – Suzuki & Isuzu

Microbus         – Suzuki & Maruti Suzuki

Minibus           – Swaraj Mazda & Isuzu

Pickups           – Ravi & Isuzu

Bus                  – Isuzu

Trucks             – Isuzu & Swaraj Mazda

5.1 Bajaj Motor Bike

Bajaj motorbike is the first Indian motorbike in the market of Bangladesh to offer quality bike to the customers. Therefore, it will enjoy the ‘first mover’ advantage in the market. It is likely to achieve middle and upper-middle class consumers’ preference and may capture the maximum market share. It also has the advantage of economies of scale, trend leadership to set the attributes of the product.

Uttara Motors Ltd is the sole distributor of Bajaj Auto has achieved highest market share in financial year, achieving 29% share had to face tuff competition. About number of 12 automobile companies are involved with Two-wheeler marketing  and they are offering attractive package of price and features to their potential customers.

The main competition of Bajaj are Hero Honda, Yamaha, Honda Pak, Dayang etc and their market share is very closed to Bajaj. Beside these several number of Chinese Brands are available in Two-Wheeler market are achieved a remarkable market share. As a heist market share holder all of we have try to grip the share first position and try to increase it to 35% of total market.

Different Brand of Bajaj Motor Bike:

BAJAJ KB 4S/ ASPIRE

BAJAJ CHETAK

BAJAJ CALIBER CROMA

BAJAJ KB-125

BAJAJ CALIBER

BAJAJ LEGEND SCOOTER

BAJAJ CLASSIC SL SCOOTER

BAJAJ CLASSIC SS SCOOTER

BAJAJ BOXER - AT

BAJAJ BOXER - CT

BAJAJ KB 4S CHAMPIAN

BAJAJ BOXER

BAJAJ CLASSIC

BAJAJ KB RTZ

BAJAJ M-80

BAJAJ SUNNY

BAJAJ SUPER FE

BAJAJ SX ENDURO

BAJAJ PULSER

BAJAJ BOXER CT DELUX

BAJAJ BOXER AR

BAJAJ BYK

BAJAJ PULSER DTSI

5.2 Findings and Analysis:

I have conducted a questionnaire survey and the findings and analysis from the same are as follows:

5.2.1 Link Between Driven of Bajaj Motorbike and other Brand Motorbikes

In my finding that before using Bajaj motorbike most of the respondents use quality Japanese motorbike for 5 yrs or more than that. From the total respondents majority of them used 7-12 months of Bajaj motorbike. When bajaj introduced in the market, it’s started to attract those customer, and for its overall performance  respondents replace it from their other type of motorbike. Normally researcher found that most of the respondents are using Pulser and Boxer AR.

5.2.2 Competitor

I have found that the majority of respondents used Yamaha and Honda, which are the major competitors of Bajaj motorbike. And those who used Yamaha and Honda they normally select pulsar of Bajaj motorbike, because of its look, fuel consumption, speedier and well designed.

5.2.3 Competitive Advantage

Obligation for non-availability of Japanese motorbike is the main reason of changing respondents mind to buy Bajaj motorbike. Objections for parts availability, services and dissatisfaction for fuel consumption are also the reasons of make the choice of Bajaj motorbike. But for the Bajaj Motorbike respondents ranked those attributes very good. Respondents who are using Bajaj motorbike, they like much better style, speedy, especially young peoples they like lucrative motorbike and Uttara motors are providing Bajaj motorbike in the market which can deliver all the need of recent customer.

5.2.4 Ranking attributes of Bajaj Motorbike

I have found in my findings that the design of Bajaj Motorbike as their 1^st choice, second choice as feature, fuel consumption as their third choice, durability as fourth choice, price as their fifth choice, brand image as sixth choice, spare parts availability as seventh choice and resale value as their eight choice. Most of the respondents use pulser and boxer AR motorbike. I have found that most of the respondents who uses  pulser, their age level is 26-30. So majority respondent are young, they likely speedy motorbike and well design motorbike and majority education level is bachelor’s and their income level is 10,000-40,000 and most of them use their personal purposes. I have found that spare parts are not available in the market though it is also an important factor while purchase a motorbike. So company needs emphasis on spare parts availability. It’s been clear from the analysis that most of the respondents are not satisfied with the price and they are very much pricing sensitive while they purchased any product.

5.2.5 Affordability to the Price of the Bajaj Motorbike

I have found maximum price of the Bajaj Motorbike is Pulsar-1,05,500.00 and lowest price of the Bajaj Motorbike is BYK-55,500.00. I have found that the majority respondents are not satisfied with the price. They claimed especially about the pulser, which is more expensive than the other brands of Bajaj motorbike. Those respondents used Honda or Yamaha. They bought it also with higher price at that period but Bajaj is an Indian motorbike and that’s why they feel its price should be keep low compare than Japanese reputed Brand Motorbike. Though Bajaj providing all the lucrative things that a bike needs but respondent are not happy with price. Those respondents are not happy with price; most of their age level is 26-30, Education level is Bechelor’s and their income level is 10,000.00-20,000.00 and most of they use their official purposes they want a price that is affordable for all customers. Though its price is high but people still select Bajaj motorbike because of the unavailability of Japanese Motorbike.

5.2.6 Reason to Choice of CC

I have found that from the total respondents 70, there are use different CC such as Boxer AR-100cc, Pulsar –150cc, Discover-125cc, Ct-100cc, Ct-100scc, KB-100cc and BYK-80cc. Most of the respondents use Pulasr-150cc and Boxer AR- 100cc. These two types of model server most of the modern facilities such as design, look, features, speedier, fuel consumption, and because those respondents who used well reputed brand motorbike like Honda or Yamaha, their expectation are high and to meet their satisfaction they have chosen these types of bike of Bajaj.

Post Purchase Behavior :

 Satisfaction of fuel consumption.

I have found that from the total respondents 26 respondents uses Pulsar motorbike. It’s found that most of the respondents are satisfied with the fuel consumption of their bike. So the perceived benefit matches with their expectation at this particular issue. The other respondents who use other types of bike of Bajaj, they also satisfied with the fuel consumption of their bike. So overall almost all the respondents are satisfied with the fuel consumption of their motorbike.

Satisfaction of After Sales Service

From this report, I have found that 74.3% of the total respondents are satisfied

with the after sales service of the company and from those respondents most of them users Pulsar which spare parts are not available in the market. So most of the respondent are satisfy to the after sell service. Uttara Motors offered 1 years service warranty but they should give more emphasis of their after sales service, so that they can provided better after sales service in near future. Because it’s becoming more competitive market, they must provide some competitive advantage. So that they can grow more customers and can maintain good customer relationship.

Availability of Bajaj Motorbike

I have found that availability of Bajaj Motorbike 62.9 percent respondents gave

their positive opinion but 37.1 percentages were not satisfied for the availability while purchasing the motorbike. Because of Pulsar motorbike is not available in the current market.

Satisfaction of Existing Product

From this report, the researcher has found that from the total respondents 26 respondents uses Pulsar motorbike. And almost all of them are satisfied with their existing product. Where as, rest of the respondents who uses other types of bike, 9 of them are not satisfied with their existing bike. So the researcher can say that most of the bike especially pulsar and Boxer AR are quality bike. And it shows that companies are not concern about quality because they already provided quality bike in the market. That’s why most of the respondents the researcher found that they are satisfied with their existing motor bike.

Recommend to Others

The researcher has found from his research paper that almost every respondent except 5 consumers are willingly to recommend others to buy the motorbike. Most of the respondents said, according to Durability, Availability, Brand Image, Design, Feature, Fuel consumption were positive, that’s why researcher found that company provides quality motorbike in the market and so that consumer doesn’t hesitate to recommend others to buy the motorbike of Uttara motors that is Bajaj.

Comments expectation and suggestions given by respondents

Price of Bajaj motorbike is one unpleasant attribute that found by the survey research. Inaddition, after sales service, Parts availability, Gear frequencies are also the unpleasant characteristics that freely recommended by the respondents to the researchers. They want Pulsar-150cc and 180cc available in the Dhaka market. On the other hand researcher found that customers are happy with their motorbike as a product and with the fuel consumption of the motorbike. But most of the respondents claimed about the price that should be decrease in near future.

5.3 BAJAJ MOTOR BIKE SALES:

Year                                                    Sales Qty

1999 – 2000                            6120

200 – 2001                                          7911

2001 –2002                             10897

2002 – 2003                            11100

2003 – 2004                            12300

2004 – 2005                            14597

Growth of Bajaj Motor Bike over last Six Year in Bangladesh

6.0 Suzuki Passenger Car

6.1 Market overview:

At present the passenger car market of Bangladesh is having a steady growth rate and is on its way toward an increasing growth rate. In the back drop of increasing urbanization & greater mobility of people & for lack of well planned, systematic public transportation network, demand for cars in general & small size, economy cars in particular, would continue to increase.

At the moment a car, in general, is not viewed as a symbol of luxury, rather it is viewed as a symbol of safety, comfort & convenience. As the purchasing capacity of the vast majority of the people in the country in habits the range of the new car price, there are certain niches that would prefer to have their own vehicle, if it is readily available & affordable. The middle class by bumper represent a large portion of the car buyers, side by side with the upper class & the potential market size is likely to increased as the price of the new vehicles is within the reach of mass people as a result of the new government policy. Taxi Cab segment also proved itself to be considered as a large market for the new Cars.

6.2 Passenger Car Market in Bangladesh:

New & recondition vehicle sale.

Year                Brand new                               Recondition

2001                1527                                        2800

2002                1784                                        2500

2003                2050                                        4300

2004                2425                                        5075

2005                2700                                        5500

Growth of Passenger Car over last Five Year in Bangladesh

6.3 Govt. Policy:

2002-03 : Reduction of import duty on new cars. Restriction on import of recondition cars. Introduce rules of country of origin (Importing from any third country is not allowed). Depreciation is calculating 10% for each year of recondition vehicle ( But note exceeding 4 years). 2003-04 :  Catalytic converter use is Mandatory Supplementary duty is increased.

2004-05 : Reduced duty but supplementary duty is increased.

6.4 Competitors of Suzuki vehicle :

Suzuki vehicles (Brand new) competitor are :- Toyota, Nissan, Mitsubishi, Honda & Hyundai.

S/N.  Brand                 Model                          C.C.                             Price

1.           Suzuki                       Liana Car                    1328 cc                        12,75,000/-     

                                                Liana Car                    1600 cc                        15,25,000/-

                                                Vitara Jeep                  2000 cc                        25,55,000/-

2.           Mitsubishi                 Lancer Car                  1300 cc                        13,00,000/-     

                                                Lancer Car                  1600 cc                        15,50,000/-

                                                Pajero Jeep                  1800 cc                        42,00,000/-

3.           Nissan                       Sunny Car                   1300 cc                        12,50,000/-     

                                                Lancer Car                  1600 cc                        15,00,000/-

                                                X-Trail Jeep                2500 cc                        27,00,000/-

4.          Toyota                       Corolla Car                 1300 cc                        15,00,000/-     

                                                Rias Car                      1300 cc                        17,00,000/-

                                                Rav 4 Jeep                   1800 cc                        31,00,000/-

6.5 Recondition Car

              Toyota                       Corolla Car                 1.3L(2000 Y) 11,50,000/-     

                                                Corolla Car                 1.5L(2001 Y) 14,00,000/-

                                                Prenmo                        1.5L(2002 Y) 15,50,000/-

                                                Prenmo                        1.5L(2004 Y) 17,50,000/-

6.6 Suzuki Sales

Year                                                    Sales Qty

1999 – 2000                            7

2000 – 2001                            9

2001 – 2002                            20

2002 – 2003                            50

2003 – 2004                            53

2004 – 2005                            42

Growth of Suzuki Car over last Five Year in Bangladesh

Projected sale in the year 2005-06

Model                                                                          Qty.

Suzuki Liana 1300 cc Car                                             30

Suzuki Liana 1600 cc Car                                             25

Suzuki Liana 1600 cc Car (New model)                        5

Suzuki Grand Vitara 2000 cc Jeep                               40

           

6.7 After sales service of Suzuki vehicles :

Uttara Motors Ltd. has the pleasure to inform their customer that they being the sole distributor of Suzuki vehicles in Bangladesh render minimum 4 (four) times free service during one year operation at 1000 km,  5000 km, 10000 km. & 15000 km. At present they has 12 (twelve) branches in different districts manned by Foreign trained experienced and skilled personnel’s through which they render their after sales services. They are located at :-

Dhaka

Chittagong

Cox’s Bazar

Sylhet

Khulna

Jessore

Bogra

Pabna

Rajshahi

Rangpur

Dinajpur

Barisal

Moreover Uttara Motors Ltd ensure to supply of spare parts through above branches as and when required by user on reasonable cost for maintenance of their vehicles.

6.8 GUARANTEE FOR SUPPLY OF SPARE PARTS

Uttara Motors Ltd. do hereby confirm that the spare parts of Suzuki vehicle  will be available in production for more than next 15-years from now on. They ensure to supply any spare parts of said vehicle during the above period on reasonable payment basis.

6.9 Segment of Suzuki Customer/Institute

Establish Ministry

Bangladesh Biman

Bangladesh Road Transport Authority

Ministry of Foreign Affairs

Ministry of Finance

GTCL

Unilever Bangladesh Ltd.

Transcome Distribution

The Daily Star

The distinct segment are Lower, Doctors, Teacher, Engineer,   Entrepreneurs, High official etc.

Corporate Office.

6.10 Sales promotion of Suzuki Vehicle

Sales promotion prefers: Short term incentive & to encourage purchase or sales of product.

Sales promotion has 3 different goals that relates to its 3 target audience.

To increase immediate customer sales.

To increase corporate supports to the sales force of the marketer.

To increase support to the business to business trade of the product.

Some factory effecting sales promotion.

1)  Rapid Growth of sales promotion :-

Inside the company the product manager face greater pressures to increase their current sales. So promotion is viewed as an effective short run sales tool.

Now companies are facing more competition & since competitors brand very close to each other so they are doing maximum sale promotion to help differentiate their offers.

Advertising efficiency has declined because of rising cost so competitors are more towsing on sales promotion.

These days consumer have become more deal oriented so they look for more like financial benefits.

6.10.1 Selling sales promotion objectives :

The objective are –

Increase short term sales.

Help build long term market share

Motivate customer to try new products.

 Attracting competitors customer.

Increase sales of Suzuki Product.

6.10.2 Selecting sales promotion tools.

Consumer promotion tools:

Samples; In case of vehicle a or a small amount of a product for trial not possible. So UML decide to chance drive of Suzuki vehicle for short run like 2 or 3 Km.

Coupon : UML offering certificate that gives buyers a saving when they purchase a product or at the after sales services.

Cash refund offer : UML Still thing king about it.

Price Pack : At the time of festival UML offer some special discount for Suzuki vehicles.

Premium : UML some time offer purchase a Suzuki vehicle get a “Gold reckless” free.

Patronage reward :  For corporate sales (Huge quantity) special discount offering.

Contests, Games :  Promotion event like TV Game (in channel i) UML offer a vehicle for winner.

6.11 Trade Promotion Tools :

Price discount :  Incase of only motor cycle sales UML offer price discount for whole seller, like get extra Tk.2,000/- discount on whole gate price till 31^st of this month. But incase of Suzuki vehicle on it is not introduce.

Point of purchase promotion : Fro display or demonstration UML open a new exclusive Suzuki showroom at 102, Shahid Tajuddin Uddin Ahmed Sharani, Tejgaon, Dhaka.

Allowances :  Promotion money paid by Suzuki Motor Corporation, Japan to UML in return for an agreement to all the manufacturers product in some way within one year.

6.12 Advertising plan

Advertisement is the fine art of convincing people that the doors to open standards are never closed.

The Advertisement plan & campaign plan are similar in outline & structure. It matches the right audience to the right Message & present it in the right medium to reach that audience.

Objective of advertising plan are

Create awareness among 60% of target audience. UML use repetitive advertising in newspaper, magazines, TV Programs.

Establish brand (Suzuki) image, through Suzuki’s features, benefit & after sales services.

Selling point are of spare parts.

6.12.1 Draw a typical advertising plan outline:

It matches the right audience to the right message & presents it in the right medium to reach that audience. The basic elements are important while planning for an advertising campaign.

 Targeting the audience : Whom are we trying to reach?

Message strategy : What do we say to them.

Media strategy : When, where & how will we reach them.

6.13 Advertising plan out line for Suzuki Vehicle:

Situation analysis : 1^st step in developing an advertising plan we analyze the important information affecting the market place, competitors, consumer, behavior, company itself & product or brand.

Advertising problem :  Analyzing the situation & identifying the problem. This problem can be solved with advertising message. Advertising can solve only those problems of a product like, image, attitude, knowledge of information etc.

Targeting the audience : People who can be reached with certain advertising medium & a particular message. We select reach people that means our target audience is reach people.

Product feature & competitive : Feature analysis & competitive advertise an important step Uttara Motors Ltd. always analysis its.

Advertising budget :  Uttara Motors Ltd using historical method. Based on last year’s budget. Last year budget was 3,00,000/-. This year budget 10,000/-  

6.14 Media using for Suzuki Advertising.

T. V.  :  Uttara Motors Ltd using TV media (National), our manufactures using satellite TV for advertising. High light vehicle advantage, feature etc.

Newspaper :  Every month minimum one advertise publish in The Daily Newspaper with multi colour, regarding Suzuki’s after sales service facilities.

Holding  :  Every district shown “Suzuki” advertise with picture of new model Suzuki.

Banner :  Some special day or event Uttara Motors Ltd use banner.

Direct mail  :  New product’s catalog send by direct mail with product specification. Advantage benefit design.

On line :  Uttara Motors Ltd., develop website advertise.

6.15 Strategic planning from top to bottom.

Corporate plan

Corporate Strategy

Corporate Tactics	Functional Level planning
	Marketing plan
	Marketing strategy
	Marketing tactics	Advertising plan
		Advertising strategy
		Advertising tactics.

Strategic planning reaches all levels of an organization from the corporate level to tactical daily operations.

Steps in the marketing plan
Select Marketing Objective	Identifies Threats & Opportunities	Select Target Market	Develop Marketing Strategies		Design Action Plan	Execute Plan
				Measure Results & take action

Strategy :

Strategic planning – making intelligent decisions.

Strategic planning is the process of determining objective, deciding on strategies & implementing the tactics. This process occurs within a specified time frame. Intelligent decision making means weighing these alternative & choosing the best approach.

Develop Marketing strategies : An important port of planning is identifying the key strategic decision that will give the product a competitive advantage in the market. Strategy selection begins with several assumptions that the marketer make about the market. These assumptions deformine  the relationship between each of the marketing mix & lead to the next stage of the planning process.

Example : 4 pcs : Product : whether the customer needs the product ? Price : whether the price of the product is worthwhile ? Place : whether the place is right for the product ? Promotion : whether we are using right media / persons / message / time etc. to promote the product ?

Design Action Plan : Uttara Motors Ltd develop specific action plan each element of the marketing strategy must be dissected.

Executing Plans : Implementation or executing the typical marketing plan requires a great number of decision. Poor execution has been downfall of many excellent marketing plan. Uttara Motors Ltd. few the following points for executing a plan.

Making sure vehicle in the showroom at right time.

Ads are running on schedule.

Sales people are receiving the right & enough support materials like catalog.

All above should be tracking day by day.

Measure Results & take action :

Every marketing plan must include an evaluation components that compares actual performance with planned performance. It the marketer determines the gap between objective & performance is significant enough, corrective action must be take. Uttara Motors Ltd. also follow the above strategy.

Some other plans :

Uttara Motors Ltd. will be opened minimum one new show room in Dhaka City within short time for attacking customer.

Finding new dealer for Suzuki vehicle marketing.

Appoint new sales force for covering whole Dhaka City & all segment of customer.

Signed a MOU with BRAC bank & Uttara Finance And Investments Ltd. for sale of Suzuki vehicle without 0% down payment.

Introducing new Suzuki Liana Hatchback model car within this year.

7.0 Recommendation :

After all the study on Bajaj Motor Byke and  Suzuki vehicle in Bangladesh on Uttara Motors Ltd.,  I can say that mainly middle class,upper middle class & few higher class peoples are valued customer for Bajaj Motor Bike and Suzuki vehicle. So, competitive price, better after sales service, establish brand image & customer awareness can develop the market of Bajaj Motor Bike and Suzuki vehicle in Bangladesh.

Beside require more advertisement about highlight advantage & benefit of new car so that general people can compare with other brand new & recondition vehicles.

We know AD through news paper can reach to every corner of the country & also special interest group. Same paper way have ADS for similar but different brand car. So customer has option to choose the right one.

Require also TV ADS, so that TV is wide reach million of people watch TV at a time.

Needs remands sales promotion, because objective of sales promotion can be increase short term sales help build long term market share, motivate customer to try new product.

More conducting advertising compare. Advertise campaign tell the market about a new product & suggesting new users for a product. Encourage to switch to Suzuki brand, Building brand image & persuade customers to purchase now or pursuer them to make a purchase call.

Must be use direct mail. A direct mail provides enough space to tell a complete & detail sales store. Direct mail allows the marketer to reach audience who are inaccessible by other media.

Require more direct marketing, like face to face. Because direct marketing refers direct communication with carefully targeted individual consumers to obtain an immediate response. Direct marketing allows sellers to focus efficiency with offers that better match specific customer needs & Direct marketing also grown rapidly in business to business marketing.

8.0 Conclusion :

As the day is passing the age is getting faster. People are getting busy day by day. “Time is money” for every body and cope us with the speed of life people need motor bike, car. Not only in private life but also for business. So the demand of motorbike car & jeep would go on increasing in the coming years. Greater mobility of  people & for lack of well planned. Systematic public transportation network, demand for motorbike and cars in general would continue to increase.  As the purchasing capacity of the vast majority of the people in the country inhabits the range of the new  price, there are certain niches that would prefer to have their own vehicle, if it is readily available & affordable. The distinct segments that come to mind are the Lower, Doctor, Entrepreneurs, University’s, Teacher, High Official etc. who need a personal transport to be mobile. Uttara Motors Ltd. is coping up with the situation & there sales promotion. Advertising plan & strategy based on to capture  customer with Bajaj Motor Bike and Suzuki vehicle.

9.0 Bibliography:

Business Profile, Uttara Motors Limited, 2002-2005.

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Prentice-Hall

Mr. A Haque Masud, Survey on Two-Wheeler Market in Bangladesh, 2001-2002. Naresh K. Malhotra (2003), Marketing Research, 3^rd Edition, 109-160,292-350. Philip Kotler and Gary Armstrong (1997), "Principles of Marketing", Eight Edition,

Prentice- Hall of India Private Limited. Philip Kotler (1999), "Marketing Management", The Millennium Edition, Prentice- Hall

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