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Runner plans to export motorcycles next year

Star Business Report
Runner Automobiles Ltd, a concern of the local Runner Group, intends to export motorcycles from the middle of next year.
Its potential markets include the north-eastern states of India, Nepal and some African countries.
The company yesterday signed an agreement with China's Dayang Motorcycles Ltd for technical support for the next 10 years.
Runner, which started assembling motorcycles at its plant at Bhaluka in 2007, will start designing its own motorcycles in 2014, said Hafizur
Rahman Khan, the chairman of Runner Automobiles Ltd, at the agreement signing ceremony.
For the local market the company will use the brand name of Dayang-Runner, while for overseas markets it will be the brand name of Runner, Khan said.
Annually, Bangladesh imports motorcycles and spare parts worth $300 million, and according to Khan, the demand is on a steady rise.
“If our plant can start designing and manufacturing of motorcycles, the country will be able to save the dollars,”
he said.
At present, the company produces 200 motorcycles a day, with plans to hit the three lakh-mark motorcycles annually from 2015.
The company currently manufactures headlights, backlights and other parts of a motorcycle, and has plans in place to manufacture motorcycle seats and chains as well.
In 2011 the company sold a total of 48,000 pieces of motorcycles in Bangladesh, Mamunur Rashid, Runner's head of sales, revealed.
Annually, a total of 3.5 lakh pieces of motorcycles are sold in the country, according to Rashid, with the growth of motorcycles business year-on-year in Bangladesh being 25 percent.
Runnerhasal5 percent market share of the motorcycle market in Bangladesh, while the market leader Uttara Motorcycle which sells the Indian Bajaj-branded motorcycles has a 35 percent market share.
Rashid predicts the sales of motorcycles will be low in 2012, with the sales figure to be around the region of 2.5 lakh cycles.
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“We need a long-term policy support from the government for the growth of motorcycle industry in the country,” said Khan.
The newly-appointed State Minister for Industries Omor Faruk Chowdhury said the country needs more than one industrial policy.
“We also need regional industrial policy,” he added.
Liu Botao, chief executive officer of Dayang Motorcycles, said the agreement heralds a new era of cooperation between the two companies.
Runner Automobiles started its business as a distributing company of Dayang Motors with only Tk 1.5 crore paid-up capital in 2000.
In 2011, the company won recognition from the government as a full-fledged manufacturing plant