In Bangladesh, the auto-components market has experienced healthy growth over the last few years. Market Insider says the auto parts market has more than doubled mostly because of the rise of car users.
The auto-components market of Bangladesh has expanded by 10% to reach a level of Tk 1,400 crore in FY 2016-17.
A business-friendly policy over the automotive sector, the increased purchasing power, growing domestic market, and an ever increasing number of the reconditioned car have made Bangladesh a favourable destination for the automotive market.
Importers mostly import the engine, alternator, radiator, air conditioner, suspension, brake pads, spoiler, rim, tyre, trim package, body components, and other spare parts needed to serve this market.
The annual growth of this auto-components market was on an average of 10% to 12% for the last decade.
The market for automotive components is still unorganized, so any exact data about the industry is not readily available.
Most of the importers fetch reconditioned and new automobile parts from Thailand, China, Indonesia, Taiwan, Dubai and India. At least 200 traders import auto spare parts and most of them have workshops. More than 2,500 traders are involved in the components business.
All most, all kinds of spare parts of various motor cars are available in Bangladesh. Among the spare parts, 80% are for Toyota cars and the rest for other brands.
The rapidly globalizing world is opening up newer avenues for the transportation industry, especially while it makes a shift towards hybrid cars, which are deemed more efficient, safe and reliable modes of transportation.
Over the next decade, this will lead to newer verticals and opportunities for auto-components importers, who would need to adapt to the change via domestic requirement.
Bangladesh auto-components importers are well positioned to benefit from the globalization of the sector as manufacturing potential.