Terra Motors JV with Bangladesh’ Runner Group
Terra Motors joint venture with Dhaka based, Runner Group, noted motorbike manufacturers in Bangladesh will cater to manufacturing and sales of electric vehicles. The deal was sealed on 27th January, 2015. Toru Tokushige, CEO of Terra Motors says the company will begin local production in Bangladesh. Operations will begin with sales of the electric tricycle R6. On full charge, R6 goes a 100 kms. R6 has been tested in India for durability, and is scheduled for launch in 2015.
Terra electric motorbikes will be launched in Bangladesh in autumn. Terra Motors aims for 5,000 unit sales by 2015 end, and 10,000 unit sales by 2016 end. Business will benefit from Runner`s 400 sales stores in Bangladesh. While Bangladesh has a supply of natural gas, it’s not sufficient for the demand generated. Resultantly, price is increasing by about 15 pct a year.
In addition, it is expected that the domestic gas field will not be supplying as much from 2020. As such, Bangladeshi government looks to import from India and Nepal, which means price hike continues. Demand for electric motorcycles and rickshaws continues to rise. Electric tuktuks made in China are a popular market in here since 2010. Being less expensive to operate as compared to the existing CNG three wheelers. As such, a growing number of Chinese made electric autos are seen as a mode of public transport.
Terra Motors looks to offer high quality electric tricycles that do not malfunction like Chinese electric vehicles acquired from an un-organised market, thereby reducing the financial burden operators bear for repair costs. Bangladesh is placed high up when ranked based on air pollution by WHO. Reports suggest 15,000 young people are killed by air pollution annually, and many more suffer. Use of petrol powered motorcycle and CNG tricycle market continues to grow to keep pace with population growth, thereby contributing to air pollution. Electric vehicles will help resolve the air pollution burden.