Celebrating a milestone: Yamaha and ACI Motors' 7-Year journey in Bangladesh

ACI Motors, a subsidiary of ACI Limited since 2007, and Yamaha, a global leader in the motorcycle industry, recently celebrated a significant milestone: seven years of successful partnership in Bangladesh. This collaboration, marked by innovation and customer-centric approaches, has seen ACI Motors grow to become Yamaha's sole distributor and technical collaborator in the nation. 

With over 116 Yamaha 3S (Sales, Service, and Spares) dealer points, they've consistently driven customer satisfaction and rider awareness. Commemorating this partnership, a grand event was organised on November 11, 2023, in Dhaka, graced by Mr. Subrata Ranjan Das, Executive Director of ACI Motors, and Mr. Hiroshi Setogawa, Sr. General Manager, Yamaha Motor Co. Ltd., alongside other distinguished officials.

In an exclusive interview with The Daily Star, Shubrata Ranjan Das sheds light on the partnership's journey and future aspirations.

Yamaha and ACI Motors have had a long-standing partnership. Can you tell us about the key milestones and achievements in this collaboration over the past few years?
SRD: We started our journey with Yamaha back in 2016. In these 7 years, the major highlight is that we are the only distributor for having technical collaboration with Yamaha manufacturing. We are also the largest distributor of Yamaha in the world by business size. If we talk about business quality, we have established the best after-purchase service network throughout the country. With Fi (Fuel Injection) cleaning stations, computer detection systems, and updated product lines in Bangladesh, we have created the updated industry of bikes in the country. We have launched Fi bikes, ABS (Anti-lock braking) bikes, and developed our services throughout the country. We also have a Guinness Book of World Records creating the largest motorcycle logo. We also host many events like Dhaka Bike Carnival.

What are the most successful Yamaha motorcycle models that ACI Motors has introduced to the Bangladeshi market, and what factors contributed to their success?
SRD: We are the market leaders when it comes to 150 cc product lines. The FZ-S v2 is the best-selling model of Yamaha. And while the volume is less, we have received the best feedback about the MT-15 of Yamaha. With 116 dealers, we have one of the most updated service and sales networks. All the dealers get the same facilities which is crucial for a good customer satisfaction level. We also have a 30-minute service commitment. It means anyone who comes for servicing bikes must receive service within 30 minutes. This feature is monitored centrally through our systems. Furthermore, we regularly research based on market potential, service requirements, etc.

After Covid-19, the bike industry saw some challenges and setbacks. What is happening right now?
SRD: The current situation is not the impact of Covid-19 but rather the impact of the dollar crisis and economic stress. The inflation rate has increased, especially the stress in city life. In bike sales, cities play a bigger role. So, the bike industry is showing about 33 to 34 percent negative growth. Some recovery has happened due to the price cuts of the manufacturing conditions. But the dollar crisis, inflation, and economic stress is showing some negatives in the bike industry. If considered quarter by quarter, it is slowing down.

Bangladesh is entering the era of 350 cc (Cubic capacity) motorcycles as of September 7. What are the plans regarding this change?
SRD: First of all, 350 cc bikes might only be 2% of the market. I do not know how many companies will play there, maybe 5 or 6 companies. This is not a big market, however, Yamaha has one of the strongest product lines in the higher cc arena. We are somewhat interested in this market but we need to consult with Yamaha which will take some time. We will go slowly on this matter.

ACI Motors' corporate policies and values play a crucial role in its success. How does the company ensure product quality, customer satisfaction, and sustainability in its operations?
SRD: We are always hearing the riders and their concerns. We value safe riding and excellent customer satisfaction over anything else. We have 21 dedicated training centres for learning about bikes and traffic rules. As about 50% of our population are women, 10 centres are solely dedicated for the female riders. We have encouraged everyone in biking which has made more women interested in riding which was not the case back in 2016, before our partnership.

What are the sales figures and growth trends for Yamaha motorcycles in the Bangladesh market, and how do they compare to industry averages?
SRD: We sell about 6,000 to 7,000 bikes in a month. We have made larger showrooms which are imitated by others as it provides very good feedback to the customers' expectations. We have set trends in the market.

Can you give us some data related to revenue, profitability, or investments that highlight the financial success and stability of ACI Motors?
SRD: Yamaha is a cash-generating business. Last year, we sold motorcycles worth about BDT 1,500 crore. However, due to the recent dollar crisis, we are struggling. We invest our money in a very specific manner which helps overall. Our marketing activities are the dominant in the industry which results in a high volume level of sales. 82% of our customers switched bike brands before coming to Yamaha.

Could you provide insights into the company's Corporate Social Responsibility (CSR) initiatives and its contributions to the local community?
SRD: We have a community named 'Yamaha Riders Club'. It is the most organised riding club in the country. In the Yamaha global map, it is also regarded as one of the most successful clubs when it comes to community engagement. We also embark on many social activities like sending reliefs to flooded places, donating blankets in the winter, etc.

With the government's initiative and global automotive industry shifting towards electric and sustainable vehicles, what are ACI Motors' plans and initiatives in line with this trend?
SRD: Personally, I believe that e-bikes will soon take over Dhaka city. We need to talk to Yamaha before launching electric options. As Yamaha also has made a commitment towards zero carbon emission, I think it will happen sooner rather than later.

Lastly, as a leader, what are the three pieces of advice you would give to young entrepreneurs and professionals looking to make a mark in the business world?
SRD: Number one, thorough knowledge of the market before investing or starting anything in any particular sector. It is important to understand the failures as well as the success stories. Number two, financial calculation. While there is emotion in doing something on your own. One must understand that business is calculation. Number three, the right attitude and commitment. Commitment to all the stakeholders, especially the customers.