Steelbird-TVS joint venture stalled amid Bangladesh’s political crisis

The ongoing political disruption in Bangladesh has disrupted the launch of Steelbird Auto Bangladesh, a joint venture between Steelbird International and TVS Bangladesh.

The plant, intended to manufacture automotive filters, was slated for inauguration on September 14, 2024. But plans unraveled due to civil unrest that forced the then Prime Minister Sheikh Hasina to flee to India and left the political and business environment in disarray.

Steelbird’s executive director, Manav Kapur, described the sudden turn of events: "So, we had the inauguration date on 14th September. And, 10 days before that, all this happened."

The company now faces difficult decisions. A recent board meeting between the joint venture partners concluded with a cautious approach to operations in Bangladesh. “Considering the situation in Bangladesh, we do not want to send people there at the moment,” said Kapur.

The disruption raises broader questions for the automotive industry: How should manufacturers balance the opportunity of expanding into new markets against the risks posed by volatile political climates?