Local production to cut Hyundai SUV price by 21%

Fair Technology Limited, the assembler of Hyundai in Bangladesh, said it would offer locally made Creta, a sport utility vehicle (SUV), at Tk 34.50 lakh to customers, nearly 21 per cent lower than the price of the imported ones.

Fair Technology initiated the production at the Hyundai automobile factory in Dhaka's northern district of Gazipur last week and the cars have already hit the showroom.

The company, which has formed a strategic partnership with the South Korean car maker to establish the manufacturing facility in Bangladesh, made the disclosure at a press conference at Hyundai 3S Center in the capital.

"The price is very competitive," said Mutassim Daiaan, director and CEO of Fair Technology.

Hyundai Creta customers will get warranty benefits for five years or up to one lakh kilometres mileage, up from three years for imported cars. The company is also offering a buy-back facility in order to boost customer confidence.

Fair Technology guarantees a buy-back facility of up to 60 per cent of the purchase price within three years of the buying of the car or if the customer has driven it less than 40,000 kilometres, Daiaan said.

Hyundai is the third automobile brand that began making cars in Bangladesh in the last couple of years thanks to VAT and tax benefits offered by the National Board of Revenue aimed at promoting domestic manufacturing and speeding up industrialisation. Japanese Mitsubishi and Malaysian Proton-branded cars are currently being assembled here.

Rangs Group assembles Japanese brand Mitsubishi Outlander while state-run Pragoti Industries makes Mitsubishi Pajero. Chattogram-based PHP Family manufacturers Malaysian Proton cars. 

Fair Tech has set up the factory on two industrial plots at the Bangabandhu Hi-Tech Park in Kaliakoir of Gazipur. It has already produced 100 units of Hyundai Creta, officials said earlier.

Each Hyundai Creta was manufactured using more than 1,000 parts imported from nine countries. Other designs of Hyundai SUVs and sedans will be gradually produced as well.

Initially, the factory will produce 3,000 Hyundai Creta SUVs each year. The number will gradually increase to 10,000 units.