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Country’s Car Market Is Growing

Apr 13 • Market Analysis • 48 Views • No Comments on Country’s Car Market Is Growing

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The country’s car market has witnessed rapid growth in the last several years due to the rapid economic growth and a rise in the purchasing power of consumers.

The comfort issue in public transport has already put a question mark. Although public transport service has been improved over time, there are still complains such as not getting a seat in the sitting-service bus, misbehaviour of the conductors and so forth.

Also, the affordable price of cars is also reasons for the boost in car sales.

Till now, this growing demand is fulfilled by the imported reconditioned car as we don’t have our own four-wheeler-manufacturing plants in our country.

If the government formulates policy for establishing four-wheeler-manufacturing plants, current prices will ultimately come down, said Habib Ullah Dawn, president of the Bangladesh Reconditioned Vehicles Importers’ and Dealers’ Association (Barvida).

In the inauguration of the 14th Dhaka Motor Show, Industries Minister Nurul Majid Mahmud Humayun said that Bangladesh will not import cars in the near future.

“We do not want to rely on others. We will manufacture our own cars,” the minister said.

Industries Minister said the local market has a huge demand of automobiles so “It has to be retained by manufacturing cars locally”.

He also said, “Handing over this market to others is illogical and we cannot only depend on imported cars.”

Putting emphasis on developing “own brand” instead of assembling and importing cars, he said imported reconditioned cars would lose the market soon in the country due to the evolving modern automobile industry.

The industries minister said his ministry would provide all types of cooperation including land allocation to the entrepreneurs who come forward for local automobile brands.

According to the Barvida, around 7,353 reconditioned cars were sold in FY 2012-13, and 20,149 cars were sold in FY 2016-17.

The country imported around 23,000 cars last year to fulfil the growing public demand.

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.

“Around 63 cars are sold in our country every day. The number of imported cars has increased threefold now,” said AKM Tawhidur Rahman, head of the sales division of Rancon Motorbikes Limited.

“The current market size of reconditioned cars and brand new cars is 25,000 units, in which 5000 units are brand new,” he added.

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