Pragoti Industries, a state-run enterprise, marked a significant milestone today by entering into a memorandum of understanding (MoU) with STX Corporation, an authorized representative of Kia Corporation of South Korea. The agreement aims to assemble and distribute Cerato, one of Kia’s popular sedans, within the local market of Bangladesh. Currently, the 1600cc vehicle is predominantly available in reconditioned formats, fetching approximately Tk 38 lakh.
Abul Kalam Azad, the Managing Director of Pragoti Industries, expressed optimism about the collaboration, emphasizing that it would enable the provision of brand new Cerato sedans at competitive prices to both government entities and private organizations by December 2024. Initially, the assembly line is slated to produce 200 units annually, leveraging existing infrastructure and facilities.
Azad highlighted the appeal of Cerato to Bangladeshi consumers, citing features such as sunroofs, a 10-inch screen, and advanced safety functionalities based on market surveys. Pragoti Industries, a subsidiary of the Bangladesh Steel and Engineering Corporation (BSEC), currently specializes in assembling sport utility vehicles, active sport crossovers, double-cabin pickups of Japanese brands, and buses in collaboration with Tata Motors from India.
For nearly a decade, Pragoti has pursued approval to assemble sedans with engine capacities within the 1600cc range, aiming to enhance affordability for local buyers. According to data from the Bangladesh Road Transport Authority, the annual demand for sedans in the country is around 16,000 units, with approximately 83 percent currently met through imports of reconditioned vehicles from Japan.
Industries Minister Nurul Majid Mahmud Humayun, present as the chief guest at the signing ceremony, lauded the potential of Pragoti to leverage its Chattogram factory’s proximity to the Chattogram port for efficient operations. He envisioned a progression from sedan assembly to eventual manufacturing under Pragoti’s own brand, calling upon Kia Corporation for technical expertise and potential investment.
Key figures from both Bangladesh and South Korea graced the occasion, including BSEC Chairman Md Moniruzzaman, Additional Secretary to the Industries Ministry SM Alam, Ambassador of Bangladesh to South Korea Delwar Hossain, Kia Bangladesh Representative Anisuzzaman Chowdhury, Executive Director of Meghna Automobile Sang Ho (Stevin) Park, and Managing Director of STX Corporation Sang Nam Kim, signaling the collaborative spirit driving this venture forward.