Mostly, the middle-class lifestyle, available car loans, and the growth of ride-sharing model are acting as a driving force to increase the number of passenger cars in the road.
A private car is a now a necessity of each middle-class family which is beyond the lifestyle.
Around 65 cars are being sold every day now in our country and the import of passenger cars has increased threefold in the last five years.
Public transport service has not improved in a significant level. There are still complains such as not getting a seat in the sitting-service bus, misbehavior 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.
Moreover, the purchasing capacity of the middle class has increased because of the emergence of easier credit facilities.
Private banks are 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, the ride-sharing model has started to transform our transportation system. 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.
These are the next factors which will drive the passenger car market in the near future. Yearly, the current growth of this market is about now 15% to 20%.