Runner Automobiles plans to reduce its short- and long-term loans by focusing on manufacturing electric vehicles. The company wants to become profitable and has set a goal to be the leader in electric vehicles. They are experiencing losses due to currency depreciation and high finance costs.
The company has outstanding loans of over Tk 13 billion and finance costs that makeup 21% of its revenue. To ease the burden, Runner Automobiles will reduce bank loans and cut operating costs. They also plan to issue preference shares and sell assets to repay bank loans. The company is testing electric two-wheelers and aims to sell 500 per month. They have collected funds through sustainability bonds and are building a rooftop solar plant for their manufacturing plant. While the manufacturing process is not eco-friendly, the company is working to reduce carbon emissions and is recycling solid waste.
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