Like other lubricants oil segments, the motorcycle oil market is eyeing significant growth because of the favourable that encourages motorcycle assembling, leading to the eventual manufacturing in our country.
The cabinet already has given the nod to Motorcycle Industry Development Policy 2018 to facilitate the motorcycle manufacturing process to meet the domestic demand. The draft policy aims to locally manufacture 5 lakh motorcycles a year by 2021 and double that by 2027.
Operators now predict that the market would grow many folds in the next two-three years. So, the motorcycle manufacturing policy already created a future market for the motorcycle engine oil.
Besides, the popularity of ride-sharing has already increased the two-wheeled traffic in Dhaka. Especially, the motorcycle population focused on ride-sharing has increased a 44% uptake in the sale of motorbikes.
On average about 1,000 units of two-wheelers are being sold in the country as the demand is rising. Five years ago the number was around 550.
So, the motorcycle oil market is on the cusp of significant change triggered by forces shaping the future of mobility.
The ride-sharing companies like Pathao, Uber Moto has already initiated a mobility revolution, impacting motorcycle oil demand due to more frequent oil drain intervals in the near term.
However, opportunities for partnerships to this market or use it as a new channel to market is among the positive factors.
In the ride-sharing model, major motorcycle oil brands need to look to the future, as questions such as who will be making the decision on the ‘brand’ of 4T oil at the time of an oil change will be raised.
Therefore, the motorcycle oil market of Bangladesh is looking at the motorcycle industry development policy as well as the ride-sharing services, and the impact of these factors on 4T oil demand.