Rancon Auto Industries Limited has brought in Japan’s Mitsubishi Corporation as a strategic investor with a 25 per cent equity stake to strengthen local vehicle manufacturing and distribution, the company said in a press release.
The parties did not disclose the deal value, but sources told TIMES of Bangladesh the Bangladeshi carmaker is receiving $10 million for the stake, with a further $20 million investment from Mitsubishi Corporation expected in the next round.
The partnership aims to improve manufacturing efficiency and distribution networks by leveraging Mitsubishi Corporation’s global expertise and market access to serve Bangladeshi consumers and regional markets.
Founded in 2017, Rancon Auto Industries Limited focuses on multi-brand vehicle manufacturing and assembly and began local production of Mitsubishi Xpander in June last year in line with government policy.
Rancon said the Xpander is currently the top-selling family sport utility vehicle in Bangladesh, with local production marking a step towards deeper industrial localisation in the automotive sector.
The investment is expected to strengthen distribution, sales and marketing functions and improve supply chain resilience through integration with Mitsubishi Corporation’s global network.
The announcement was made on Wednesday at a city hotel in the presence of Finance and Planning Minister Amir Khasru Mahmud Chowdhury, Civil Aviation and Tourism State Minister M Rashiduzzaman Millat and Japan Ambassador to Bangladesh Saida Shinichi.
Mitsubishi Corporation Senior Vice President and Division Chief Operating Officer Hiroyuki Egami said the company will bring its automotive expertise from global operations into the partnership.
Rancon Holdings Group Managing Director Romo Rouf Chowdhury said the partnership will combine global expertise with local market knowledge to advance Bangladesh’s automotive industry.
He said the alliance, the first of its kind in the country’s automotive sector, reflects growing Bangladesh-Japan trade relations and is expected to expand access to vehicle financing, improve after-sales services and ensure affordable spare parts availability.
He added that it will also strengthen nationwide distribution networks, support technology transfer and help build a skilled local workforce while contributing to government revenue through value-added tax and other taxes.
