Bangladesh Crisis News Indian 2 wheeler companies will face hit as exports may tumble

Neighboring country Bangladesh is currently going through an internal crisis. The government led by former Prime Minister Sheikh Hasina has collapsed and the process of forming a caretaker government is underway. This internal crisis in the neighboring country can affect the operations of many Indian companies. Especially the business of many companies in the auto sector can be affected by this crisis.

Factories have been shut down for three days

There is a fear that due to the crisis in Bangladesh, the export of two-wheelers, trucks, buses etc. from India may be affected. Bangladesh had a good share in the total exports of many Indian automobile companies. Two-wheelers from Bajaj to Hero have been very popular in the Bangladesh market. The current crisis has posed a threat to this market. On the other hand, due to the crisis, factories in Bangladesh have been closed for three days.

Two-wheeler exports to Bangladesh

According to a report by ET, Bangladesh contributes about 3.6 per cent to the total monthly exports of Bajaj Auto, the largest Indian automaker exporting two-wheelers and three-wheelers. Now, this could be affected. In the case of Hero MotoCorp, the impact could be bigger, as Bangladesh accounts for 20 to 30 per cent of its global exports.

Bajaj-Hero has a big market in Bangladesh

In Bangladesh, 4.5 to 5 lakh two-wheelers are sold annually. Bajaj Auto has the highest share of 20-23 percent. Hero MotoCorp has 15-20 percent share in the two-wheeler market of Bangladesh. Both Bajaj and Hero have been present in the Bangladesh market for more than a decade. Hero MotoCorp has also set up a manufacturing plant in Jessore, Bangladesh. TVS Motor has also set up a plant in the neighboring country through a JV.

Exports worth Rs 1,500 crore affected

Apart from two-wheelers, commercial vehicle companies like Tata Motors, Ashok Leyland, Eicher Motors may also be affected by the crisis. Before the Covid pandemic, 34-35 thousand commercial vehicles were being exported from India to Bangladesh. In the subsequent years, there was a steady decline in it and in 2023-24, the export was only 6 thousand vehicles. However, after that the export started improving again. In the financial year 2023-24, India exported vehicles worth about Rs 1,500 crore to Bangladesh.

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