Introduction of ride-sharing services in Dhaka in recent years has contributed a lot to a rise in demand for motorbikes.
Due to the absence of proper traffic management and adequate public transport facilities, Dhaka city dwellers continue to endure traffic jams.
Traffic congestion, according to the World Bank, eats up 3.2 million working hours per day in Dhaka and average traffic speed has dropped from 21kmph to 7kmph in the last 10 years.
With the rise of traffic congestion in Dhaka, the number of ride-sharing services involving bikes also saw a gradual rise in the last three years.
Terming introduction of ride-sharing service as one of the main reasons behind the influx of motorbikes in the city.
According to Bangladesh Road Transport Authority, total 1,04,064 motorcycles were registered in Dhaka in 2018 while the number was 75,251 in 2017 and 53,738 in 2016.
However, motorbike and ride-sharing services have brought some relief to this situation. It has also created employment opportunities for motorcycle riders.
Ride-sharing services were launched in 2015, and over two dozen service providers are now available in the city.
Last year, the cabinet approved the “Ride-sharing Service Guidelines 2017” to bring the companies under regulation.
Overview: Bangladesh Motorcycle Industry
Here the motorcycle industry is growing with exponential growth.
Besides faster mobility, rising income, a steady growth of the economy and favourable government policies that encourage local production are contributing to this prosperous market.
“The motorcycle market is estimated to sell approximately 6 lakh units by the end of 2019,” informs Subrata Ranjan Das, Executive Director, ACI Motors Ltd.
Market insiders said around 5 lakh motorcycles were sold in FY2018-19, up 25% from 4 lakh a year ago. It means nearly 1,500 motorcycles are being purchased every day.
Assuming the price of a motorbike is Tk 100,000 on average, total market size in monetary terms would be around Tk 5,000 crore, which is almost equivalent to the four-wheeler market.
This growing demand has encouraged market players to set up either manufacturing facilities or assembling plants to grab the market share.
Around 80% of motorcycles running in the country have either been locally manufactured or assembled.
Brands like Bajaj, TVS and Hero are dominating in the pace, but other players such as Runner, Honda, Yamaha, Suzuki and Mahindra are also making a mark.
Sector players said annual sales would cross 15 lakh units by 2025.