TVS Motors is planning to assemble vehicles in Bangladesh in partnership with state-owned Atlas Bangladesh Limited. Outside India, TVS Motor currently manufactures vehicles only in Indonesia, through which it caters to both domestic and international markets.
While TVS Motor did not comment for the development immediately, Atlas Bangladesh confirmed it stating that a Corporate Partner Compromise Memorandum (MOU) was signed between Atlas Bangladesh Limited and TVS Auto Bangladesh Limited.
Under the agreement Atlas Bangladesh Ltd and TVS Auto Bangladesh Ltd will work for two years as corporate partners, and the former will assemble 15,000-20,000 units of TVS-branded motorcycles every year.
Apart from this, the two parties will also be signing an MoU soon, to produce important spare parts for Bangladesh Motorcycles, Atlas Bangladesh said.
Atlas Bangladesh Limited has access to government, semi-government, autonomous organisations, government procurement mechanisms (DPM) and open tender mode (OTM) motorcycle facilities. As a result of today's MoU, Atlas Bangladesh will be able to supply motorcycles directly to such entities.
Besides TVS, a number of Indian brands such as Hero and Ashok Leyland have started assembling vehicles of their brands in Bangladesh mainly to grab the tax incentives the country is giving for manufacturing products there.
Atlas Bangladesh assembled Hero-branded motorcycles for some time before Hero MotoCorp signed an agreement with Nitol Niloy Group in April 2014. The state-owned entity is now manufacturing motorcycles for a Chinese brand, the report added.