Japanese company Mitsubishi Corporation has made a direct investment in automobile manufacturing in Bangladesh. It has made a strategic investment in the factory of Bangladeshi company RANCON Auto Industries Limited. As part of this, Mitsubishi Corporation has acquired a 25% stake in RANCON Auto Industries Limited, a press release said.
Previously, RANCON Auto Industries Limited assembled vehicles in its own factory by importing them from Japan’s Mitsubishi Corporation. Now, Mitsubishi Corporation has become a part of the ownership of RANCON Auto Industries Limited. According to relevant sources, this is the largest Japanese foreign direct investment (FDI) so far in Bangladesh’s four-wheeler transport sector.
The main objective of this partnership is to increase production capacity, strengthen the distribution network, and provide better services to local customers. At the same time, there are plans to expand the business into regional markets.
Speaking as the chief guest at the event, Finance Minister Amir Khasru Mahmud Chowdhury said, “This agreement marks the first major foreign direct investment under the current government, which will send a positive message to international investors. The entry of Mitsubishi Corporation will encourage other global investors to invest in Bangladesh. This partnership with RANCON Auto Industries Limited marks the beginning of a new chapter in the country’s automobile industry, through which I believe local car manufacturing will become possible for the first time.”
Established in 2017, RAIL has focused on multi‑brand vehicle manufacturing and assembly to deliver reliable mobility solutions for Bangladeshi consumers. In line with the Government’s manufacturing policy, RAIL began local production of the Mitsubishi Xpander in June last year. The Xpander is currently Bangladesh’s #1 family SUV. The local production marks a significant step towards deeper localization of automotive manufacturing in the country.
The strategic investment from MC will enhance distribution, sales and marketing functions, and improve supply chain resilience, by leveraging MC’s global expertise and market access.
The announcement was made in the esteemed presence of Amir Khasru Mahmud Chowdhury, Hon’ble Minister, Ministry of Finance & Planning, M. Rashiduzzaman Millat, Hon’ble State Minister, Ministry of Civil Aviation & Tourism and H.E. Saida Shinichi, Ambassador of Japan to Bangladesh.
Speaking on the occasion, Hiroyuki Egami, Senior Vice President and Division COO of Mitsubishi Corporation, reaffirmed MC’s commitment to bringing its expertise and business experience from automotive businesses in other countries into this joint venture.
Romo Rouf Chowdhury, Group Managing Director of RANCON Holdings Limited, said, “This partnership between Mitsubishi Corporation and RANCON, will play a pivotal role in advancing Bangladesh’s automotive industry by integrating global expertise with deep local market insights. This landmark strategic alliance — the first of its kind in the country’s automotive sector — underscores the strength of Bangladesh–Japan trade relations.
Further this strategic investment is anticipated to enhance access to affordable and convenient vehicle financing, expand after-sales service capabilities ensuring affordable spare parts availability, and strengthen nationwide distribution networks. It will also facilitate the transfer of technology and knowledge to develop a highly skilled local workforce, while contributing to government revenue through VAT and Taxes.
