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Against this backdrop, Rancon initiated discussions with Mitsubishi Corporation to leverage its manufacturing and distribution expertise. The talks culminated in the joint venture, under which Mitsubishi Corporation acquired a 25 percent stake in Rancon Auto Industries through direct foreign investment.

“This is a proud moment for us,” Chowdhury said, adding that the partnership reflects growing international confidence in Bangladesh’s industrial prospects.

He said it could be the first instance of direct foreign investment in four-wheel vehicle manufacturing in the country.

Chowdhury expressed hope that the move would encourage other global players to invest, helping build a stronger automotive manufacturing ecosystem capable of generating employment and eventually developing into an export hub.

He also pointed to regional examples such as Indonesia, Thailand, Malaysia, Vietnam, India and Pakistan, which have developed established automotive industries with export capacity.

Japanese Ambassador to Bangladesh Saida Shinichi described the joint venture between Mitsubishi and Rancon as a “significant milestone”, crediting engineers, technicians and government officials for their roles in bringing the project to fruition.

He said Mitsubishi had begun training Rancon engineers in 2024, followed by the launch of Xpander assembly in June last year, calling it evidence of strong collaboration between the two sides.

The envoy also highlighted Bangladesh’s efforts to improve the investment climate, including its first Economic Partnership Agreement (EPA) with Japan, signed in February, and initiatives such as the “Investment Gateway”.

He said the Mitsubishi Xpander is the only locally assembled Japanese-brand vehicle in Bangladesh, calling it the country’s first “made-in-Bangladesh” Japanese car.

He added that local assembly could support wider industrial development, including technology transfer, job creation and growth in upstream industries such as parts manufacturing.

Hiroyuki Egami, senior vice-president and division COO of Mitsubishi Corporation, reaffirmed the company’s commitment to bringing its global automotive expertise to the partnership.

In his speech, Finance Minister Amir Khosru Mahmud Chowdhury described the Mitsubishi-Rancon joint venture as a “refreshing change” for an automobile sector long dependent on imported vehicles.

“Bangladesh has traditionally depended on cars imported from Japan, Europe and the United States, a pattern that had become a way of life,” he said, adding that local assembly with a global brand like Mitsubishi marks a significant turning point.

He said Rancon’s experience in the automobile market makes it a suitable partner and expressed confidence that the collaboration would grow “from strength to strength”.

The minister highlighted the venture’s wider economic impact, pointing to its potential to raise value addition, create jobs and support industrial development, particularly in light engineering.

He added that the government is planning a dedicated zone for light engineering industries to support such initiatives.

At the programme, State Minister for Civil Aviation M Rashiduzzaman Millat announced that direct flights between Dhaka and Tokyo would resume next month, restoring a key air link between Bangladesh and Japan after a prolonged suspension.

He said the resumption would strengthen connectivity, facilitate trade and business, and deepen people-to-people ties between the two countries.

“You will be happy to know that we are starting flights to Tokyo from next month,” he said, adding that the move was expected to boost bilateral engagement on multiple fronts.