Bangladesh Automotive Industry: A Roadmap For The Future
To fulfill its automotive needs, Bangladesh has been dependent on imported vehicles for a long time. The capital city Dhaka is among the world's largest and most densely populated places, has high potential to become a smart-city. This means that there is an increasing demand for motorized vehicles.
With increasing government procurement and rising middle-class populations and the market for automotive parts was growing at an annual growth rate of between 10 and 12 percent in 2019. People are enjoying a higher purchasing power that allows people to buy cars for themselves and avoid the poor quality of public transport. Additionally, the rise of ride-sharing platforms including Uber, Pathao and others are also contributing to the rising demand. This demands that the country creates an auto manufacturing industry. This will reduce import dependence and create jobs for many. Whether you desire additional resources on the most trusted car dealer in Bangladesh,
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Projection of Automotive Markets Bangladesh
Ten years ago, the automobile market was smaller than BDT 500 million (USD 58 millions). However, the market is expected to grow to around BDT 1400 crore in 2019 approximately USD 164 million. Import-dependent markets host a variety of vehicle brands from many countries such as Japan, South Korea and China, Germany, France (Malaysia) and the UK, and the USA. Of these, Japan and India are the major sources for importing vehicles. Bangladesh is witnessing an increase in registered motor vehicles over the past few years, which indicates increasing demand for automobiles.
A majority of the parts for cars such as alternator, engine, radiator, brake pads tires, suspension, body components and so on. are also imports from Thailand, China, Taiwan, Indonesia, Dubai and India. There are more than 200 auto parts dealers across the country, but only a few local companies, Pragoti Industries Ltd being the largest. Locally manufactured parts are not exactly as good as imported ones. Therefore, the traders have to rely on imported parts.
Car Market Ruled by Japanese Brands
Reconditioned cars have been predominantly ruling over the car market while 95 percent of the cars are imported from Japan. Reconditioned cars are usually considered to be brand new in Bangladesh and account for 50 percent of total car sales. While 5 percent of the cars are brand new, the rest is a majority of used cars which refers to the existence of a thriving second-hand car market.
Navana Ltd. distributes Toyota and Hino cars, despite the existence of a number of automobile assemblers across the country. In addition to Rangs Ltd, Uttara Motors Ltd, and Nitol-Niloy Group, they remain the exclusive distributors of Mitsubishi Motors and Suzuki vehicles as well as Suzuki vehicles.
Within the class of private passenger cars among the private passenger cars, the Japanese brand Toyota has been ruling the market since the 90s. Other well-known brands are Honda, Nissan, Suzuki, BMW, and so on. According to the advertisement for vehicles data of Bikroy.com in the year 2018, Toyota has more than 80% of market's popularity.
Different Toyota models, including the Corolla, Noah and Allion are among the most sought-after in Bangladesh. Due to its affordability, the Toyota Corolla is undoubtedly most loved. Toyota Noah is the most popular choice as family vehicle and Mitsubishi Pajero leads among the SUVs.
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