Although dltlcrcnt companies have been assembling nioiorryc les m the oonnlrv sum r long, the demand is still loo low to go lor two-wheeler manufacturing.

I lie poor demand, ac cording io industry people*, is due lo high value added tax (VAT) and registration fee.

According to the Motor Cycle Dealers Association (MCDA), only about 27.000 motorcycles were sold In the connin’ last year. However, in a connin* of over 12 crore people, the sales figure is lar too short ot the 11idust n s expectations. Insiders \i w that given the size of the population, at least loo.(MX) lllllts should hr sold pvimv vpar

Lui unless a singl brand an ptdl an annual demand of ii least 50.000 units, n would not be viable t set up production plants, assemblers say

Domestk demand in Sri Lanka India and Pakistan prompted ompanies lik«* Honda. Yamaha and Suzuki to set up joint venture production plants m those countries.

( iirreiilly. moior v les are im|)ortcd in completely knocked down (CKDI form Iron) India. Pakistan and China and then assembled locally. Earlier. Ja-|)an was the main source of hil.es which importers later mostly discarded due to high yen appreciation

Allas, an enterprise ol the

Bangladesh Steel and Engineering orjMnaiion. still mi-pnris motor cycles m CKD form from Japan In addition from India and Pakistan The Ja panes* motor cycles that are assembled In Alias art- C-50-SWR. CD-8O-P CG-125 and XL-185

With 7000 units annual sales. Atlas commands 26 per t ent ol the market

1 he state-owned enterprise also assembles Indian Hern Honda CD I oo Splendour and CD 100 SS. Recently Atlas has also started assembling two models of Pakistan-made Honda motor rye les -- CD-80 DK and CG-125 PK

Private sector companies including Karnaphuli. (Jttara Motors. Rian Motors ami Niloy Motors sell some 20.000 nulls* per year. j

Although the demand is too ’ low to set up production plant. Nilol Group ret ently announced that it would go for local manutac taring. However, the company did not sjwll out any spdie time limit to implement us project. Company insiders said that before going for manulact tiring two wheelers it has io create a demand in the country’.

To achieve its target. Nftol recently launched tts own brand motor bikes mi|xrted trom China. If has extended credit facilities to end-users w ith die ami to create demand \H! sell', three ly|es of mtuuf bikes -- Nitul Rider 125cc. Nilol «.l C. |i|lu ,md \ltol himle I Ol •