Terra Motors Corporation, a leader in electric two- and three-wheelers in Japan, has established a joint venture deal with the Runner group of companies, “the most famous motorcycle manufacturer in Bangladesh.” The joint venture will be called Runner Terra EV Ltd. Under this venture, Terra will leverage Runner’s electric manufacturing and sales force.
According to Toru Tokushige, Terra Motors CEO, local production and sales of Terra’s electric rickshaw, the R6, will begin in Bangladesh. From there, Terra will launch a new electric motorcycle in Fall 2015. Tokushige is aiming for 5,000 unit sales by the end of the year, and double that amount by the end of 2016, utilizing Runner’s 400-dealer network in Bangladesh.
Terra believes there’s a strong market in Bangladesh for three reasons:
In Bangladesh, the market for electric tricycles made in China has been expanding since 2010. Because of the decreased cost, many such electric tricycles are rampant in Bangladesh now. However, the Chinese rickshaws malfunction frequently, forcing the relatively poor drivers to make big expenditures to fix it. Terra Motors Corporation contributes to the improved livelihood of drivers by introducing electric tricycles of high quality.
● Preventing air pollution
Bangladesh ranks fourth among countries whose air pollution is progressing, according to the recent WHO investigation. It is said that 15,000 young people are killed by the air pollution annually and several millions of people suffer from bronchitis in this country. The gasoline motorcycles and CNG tricycles, which continue increasing with population growth, greatly contribute to this problem. It can be relieved by the spread of electric motorbikes and tricycles.
● The drying up and price rise of natural gas
In Bangladesh, natural gas prices are increasing by 15% per year because supply can’t keep up with demand. In addition, it is expected that the domestic gas field will decrease from its peak in 2020, and the Bangladeshi government has already decided to import from India and Nepal. So it seems that the price hike will continue in the future.
As fuel prices raise, this is a direct blow to the life of Bangladeshi people, who earn less than 10,000 yen on average as monthly salary, the demand to an electric motorcycle and an electric tricycle are increasing. It’s for these reasons Terra believes it has a captive market in Bangladesh.
For more information, please visit http://www.terra-motors.com/.
[Source: Terra Motors]