Sales of commercial vehicles are growing rapidly in Bangladesh. The economic growth and moving transport activities in the last decade have made Bangladesh a potential market for commercial vehicles.
The rapid sales growth of commercial vehicles began in 2014 and it is increasing.
At present, the market size of the commercial vehicle is about Tk 4,200 crore whereas it was about Tk 2,000 crore a decade ago.
At least 35,000 units of commercial vehicles such as bus, truck, auto-rickshaw, cargo van, human-haulier, pickup and tanker were sold last year. It is higher than 2,000 units 10 years ago. And, this growing demand will continue to grow more in the next 10 years at this current pace.
The market size of commercial vehicles grew 15% to 20% every year over the last decade.
Bangladesh Road Transport Authority (BRTA) showed it registered 7,808 unit of trucks in the seven months to July this year.
The number was 7,275 units in 2016, and 6,330 units in 2015.
The automotive industry in Bangladesh is largely dominated by imports of reconditioned and new vehicles, mostly from Japan, China, and India and a few from Europe and the US. Now, commercial vehicles are imported from India mainly due to competitive pricing and availability of spare parts.
The automobile manufacturing and assembling industries have not grown in Bangladesh in the last three decades because of a lack of raw materials and the backward linkage.
But, it is expected that the local entrepreneurs will soon go for automobile manufacturing in the country.
Bangladesh is a small country with huge possibilities in South Asia. Keeping pace with the automotive world, the demand for commercial vehicles in Bangladesh will rise.
In 2015, the sales of global automotive vehicles were very close to 89 million dollars.
From 2012, the emerging markets’ share of global sales is projected to rise up to 60% by 2020, while their share of global profits is also set to rise by 10%. And, when it comes to new vehicles, purchase intent is always strongest in Asia.