In the past decade, Bangladesh has become the undisputed growth region for reconditioned cars. Around 65 cars are sold in Bangladesh on an average now.
Currently, the market size for reconditioned cars is around Tk 5,000 cr. Each year the size of the market is increasing by 15 to 20%.
During July 2017 to December 2017, Bangladesh imported around 11,476 cars to fulfil the growing public demand.
Furthermore, the increasing motorization rate in Bangladesh, fueled by rising average household incomes over the years, has formed the bedrock for automotive lubricants in the passenger cars segment (“PCMO”).
The distribution structure of PCMO in Bangladesh traditionally covers the following channels: primary and secondary distributors, servicing workshops, gas stations, automotive retail shops, and localized retail shops.
Due to the need to serve a large market base across diverse geographical landscapes, end-users typically purchase their lubricants from servicing workshops—many of which are operated by small businesses—followed by petrol stations and localized retail shops.