A local manufacturing firm has initiated a move to produce CNG-run motorcycles, but finds the present tax structure on raw material import as a constraint on its way.

According to industry sources, the RB Group, a manufacturer of electronic, electrical and automobiles, has taken the move, considering the growing demand for motorcycles, reports UNB.

The RB Group has already set up its manufacturing plant at Chandra in Gazipur on a land of about 50 acres.

The group has also started manufacturing liquid fuel-run motorcycles, which the Bangladesh University of Engineering and Technology (BUET) has certified as a quality product.

There is a demand for 0.1 million (1.0 lakh) pieces of motorcycle in Bangladesh a year, the sources said.

Motorcycles are increasingly being used in rural areas with the development of road communication.

But motorcycles are imported from various countries, including India, China, Pakistan and Korea, as there is no manufacturing plant in the country.

Once Japanese motorcycles were very popular in Bangladesh, but Japanese firms are now producing motorcycles through their franchise units in India in joint ventures with local firms.

But, according to experts, the Indian motorcycles are liquid fuel-run and their cost is also very high and that appeared to be a big problem for those who want to buy motorcycles.

Considering it as a great opportunity for local firms, the RB Group has come forward to produce high quality motorcycles in the country.

The company has set up the manufacturing plant in 2004 and now it is producing 300 pieces of motorcycle a day, RB Group Director Mahbubul Alam said.

He said the group, under the brand name of Walton, has planned to launch its products next month on the local market.

About 1,08,000 pieces of 50cc-150cc motorcycles will be produced in the plant per year.

"One of our main targets is to export motorcycles after meeting the domestic demand", the RB group director said adding that now his company has moved to produce CNG-run motorcycles, considering its cheap fuel cost.

He said the duty structure on import of raw materials is a big constraint for the manufacturers.

According to him, the duty on import of raw materials and finished products is almost the same that sometimes discourages the local manufacturers to go for setting up manufacturing plants.

"If the import of materials is made duty free, local firms can easily compete with the international market. Even we can export our motorcycles to neighbouring countries, including India take advantage of the duty-free access under SAFTA in the future", he added.