The two-wheeler market in Bangladesh is revving up with the steadily increasing demand for the two-wheelers in the country.
Bangladesh two-wheeler market is expected to witness high growth at a CAGR of above 6% in value terms, from 2018 to 2023, owing to the increasing two-wheeler sales in the country over recent years.
Domestic production has pushed down prices of the two-wheelers by nearly half.
Back in 2016, a reputed brand bike costs Tk 149,000, now it costs just Tk 97,000. Low prices have increased the demand for two-wheeled vehicles significantly.
The city-dwellers and office goers prefer using motor-cycles over two-wheelers in a bid to avoid the high congestion.
Two-wheelers are also widely adopted in rural areas due to the poor road infrastructure.
Economic factors such as high economic growth, rising population and increasing spending power of the costumers are attracting the major players in the Bangladesh two-wheeler market.
Bangladesh has turned into a mature market such as India and China.
The arrival of key players such as Honda, Yamaha who are setting up production facilities in the country is likely to act as a driver for the market in the coming years.
Moreover, increasing interest of women as potential customers, lower maintenance services and replacement parts as compared to four-wheelers is expected to drive the growth of the market in the coming years.
Also, the technological advancements in engine capacities, the introduction of newer models by the manufacturers and rising shift towards electrical two-wheelers are expected to drive the growth of the market in the next five years.
Based on the vehicle type, the two-wheeler segment leads the market and is expected to maintain its position during the forecast period, owing to high adoption of two-wheelers due to low-maintenance, easy availability of finance and popularity among office goers to void traffic congestion.
Electric two-wheeler segment is expected to grow due to the rising need for shifting to alternate transportation to control pollution and conserve fossil fuels.