Bangladesh Automotive Industry: A Roadmap To The Future
From luxurious sport utility vehicles (SUVs) to small , compact cars, to meet the country’s demands for vehicles, Bangladesh has always been dependent on imported cars. Being one of the most densely populated cities in the world and with great potential to be classified as a smart town, the capital city Dhaka naturally predicted a surge in demand for motorized vehicles.
With increasing government procurement and increasing middle class, the automotive parts market is growing at a increase of 10 to 12 percent in 2019. The rising purchasing power of people enables them to pay for cars and to avoid poor quality public transportation. The increase in ride-sharing services like Uber, Pathao, and other services is as well a factor in this growth in demand. This requires action to create an automotive manufacturing industry within the country which will reduce dependence on imports and boost the local industry by generating jobs for many. When you require a full report about the most trusted car dealer in Bangladesh, browse this site.
Projection of the Automotive Markets in Bangladesh
10 years ago, the automobile market was less than BDT 500 million (USD 58 millions). However the market is predicted to grow to around BDT 1400 crore by the year 2019 which is USD 164 million. The import-dependent market brings many brands of cars from nations like Japan, India, South Korea, China, Germany, France, Malaysia, the UK and the USA. Among them, Japan and India are the major sources for importing vehicles. In Bangladesh there has been a significant rise in registered motor vehicles in the last couple of years. This indicates that there is increasing demand for cars.
Most of the automotive parts including engine, alternator, radiator, brake pads, tire, suspension, body components, etc. They are imported from India, Thailand, China and Taiwan are also available. There are nearly 200 auto parts dealers in the country, but just a few local manufacturers, Pragoti Industries Ltd being the biggest. Locally produced parts fail to ensure high quality when compared to imported ones. Hence, traders have to rely on imported parts.
Car Market Dominated by Japanese Brands
Reconditioned vehicles have been dominating the market for cars with 95 percent of cars come from Japan. Reconditioned cars are typically considered new in Bangladesh which is the reason for 50% of all automobile sales. The 5 percent that are brand-new cars make up the majority of the remaining 45 percent. This is an indication of the healthy second-hand market.
While multiple car assemblers and distributors have been established across the country, Toyota and Hino vehicles are sold by Navana Ltd. In addition, Rangs Ltd, Uttara Motors Ltd and Nitol-Niloy Group remain the sole distributors of Mitsubishi Motors, Suzuki vehicles and Tata vehicles respectively.
In the category of private passenger vehicles of the market, the Japanese brand Toyota has been ruling the market since the 90s. Other well-known brands include Honda, Nissan, Suzuki, BMW, and so on. Bikroy.com’s advertising for vehicles indicate that Toyota holds 80 percent market share in 2018.
The top-selling cars in Bangladesh include a variety of Toyota models. Toyota such as Corolla, Noah, Allion and many more. The version Toyota Corolla is undoubtedly the most well-known due to its high cost-effectiveness. Toyota Noah is the most preferred option for families vehicle, while Mitsubishi Pajero is the top-selling SUV.
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