Growing middle-class people, about 7% of the total population in Bangladesh have already expanded their required lifestyle. And, a private car is a now a necessity of each middle-class family rather than the lifestyle.
Around 65 cars are being sold every day in Bangladesh now which is the highest in the country’s history.
The import of passenger cars has increased threefold in the last five years.
According to the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), around 7,353 reconditioned cars were sold in FY 2012-13, and 20,149 cars were sold in FY 2016-17.W
Lack of comfortable public transport
In our city, the comfort issue in public transport is still a question mark. Although public transport service has been improved over the time, there are still complains such as not getting a seat in the sitting-service bus, misbehaviour of the conductors and so forth.
The lack of standard public transport in Dhaka and the affordable price of cars are also reasons for the boost of car sales.
Currently, the market size for reconditioned cars is around Tk 5,000 crore. Each year the size of the market is increasing by 15 to 20%, according to Barvida.
There has been a big jump in the purchasing capacity of the middle class as well as an emergence of easier credit facilities.
Bank officials say that commercial banks cutting interest rates is one of the reasons why more people are buying cars. In 2014 and 2015, a car loan would cost you 15-16% in interest rates, but that has now dropped to 10-11%.
Nine out of ten buyers are using bank loans to get their cars. Generally, a bank pays 50% of the car’s price with the condition that the car would be registered under the bank’s name.
So far, in Bangladesh, ride-sharing is being observed as a tech-oriented business venture, a transformative one to our transportation system.
Yearly, the ride-sharing industry is worth an estimated Tk 2,200 crore. Even then, it makes up only 23% of the transportation and has already grabbed a larger portion of the overall transport industry.
Operators predict that the market would grow many folds in the next two-three years.