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Runner allowed to make 500cc bikes

Sohel Parvez
The government has given the go-ahead to Runner Automobiles to import raw materials and components to make motorcycles of over 165cc to 500cc, widening export opportunities for the local company.
“We are very happy. The move will help us expand our export market and meet the growing demand of the international customers to a great extent,’ said Hafizur Rahman Khan, chairman of the company.
The commerce ministry gave the import permission to Runner through a letter issued on August 30.
However, the letter attached a condition that no motorcycle above 165cc can be sold in the domestic market and none of the imported parts can be handed over to other companies.
Runner was also asked to take adequate safety measures to prevent sale of the higher capacity motorcycles and their components, according to the letter issued to the chief controller of the Office of the Chief Controller of Imports and Exports. Runner started manufacturing two-wheelers in the country in 2010 and made its first shipment in January 2017.
"We have seen that there is demand for higher engine capacity motorcycles in Nepal, Bhutan, Sri Lanka and even in Myanmar,’ Khan said. "There is demand for higher capacity bikes in African countries also."
Khan said his company would be able to manufacture motorcycles of over 165cc from early next year to cater to the annual global demand of 2 crore units of two-wheelers.
“We will primarily focus on making 200cc to 250cc bikes.’
“It is a big achievement actually," said Mukesh Sharma, managing director and chief executive of Runner Automobiles.
Runner has exported more than 1,000 units of motorcycles last fiscal year and aims to ship 2,000 units of higher capacity motorcycles by the end of 2019, Sharma said.
The withdrawal of the cap on import of components of over 165cc bikes came from the government as part of its efforts to diversify the export basket, an official of the commerce ministry said.
The government has cut supplementary duty on import of components for motorcycles by 25 percentage points to 20 percent in 2016-17 and framed a policy to develop a local industry for motorcycle manufacturing. Prices of motorcycles fell in Bangladesh thanks to the duty cut, which ultimately encouraged customers to buy more of such vehicles. The sale of motorcycles doubled to nearly 4 lakh units in the last five years,
according to industry estimates.
Khan said five companies have already taken up bike manufacturing and five more plan to begin production.
He said Runner has a 14 percent share in the domestic market.