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Honda Signs Joint Venture in Bangladesh

Friday, September 28, 2012
Honda expects to sell 220 000 of its new little Twister annually.
Honda Motor Co. has signed a joint venture agreement to establish a motorcycle subsidiary in Bangladesh.
Honda has signed a joint venture agreement to establish a motorcycle subsidiary in Bangladesh. The Japanese company will partner up with Bangladesh Steel and Engineering Corporation (BSEC), with plans to create the JV by the end of 2012.

Bangladesh is the eighth most populated country in the world, with Honda citing annual motorcycle sales at 180,000 units in 2011, an 11% increase from 2010. India, its geographic neighbor to the west, has an annual sales tally of more than 11 million.

Honda states in its joint venture announcement that it envisions “collaboration with other Honda operations among Southwest Asian countries including India and Pakistan.”

Honda operates a wholly owned subsidiary in the high-volume Indian market, Honda Motorcycle & Scooter India (HMSI), which it created in 1999. As HMSI grew, it competed with Honda’s own joint venture in India, Hero Honda. In December 2010 Honda withdrew from its JV agreement with Hero, divesting its 26% share. (Hero has since gone on to forge a strategic partnership with Erik Buell, and his reborn company - Erik Buell Racing.)

Honda’s previous access to the Bangladesh market was through Atlas Bangladesh Limited, a subsidiary of BSEC, the new joint venture partner. Atlas distributed models from both HMSI and Hero Honda.

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