Over the last decades, Bangladesh has been emerging as a developing country, offering significant growth opportunities across diverse industry segments including automotive.
As an automotive component segment, tyre market is growing too on the back of growth in automobile sales, advancements in public infrastructure, and development-seeking government policies.
The government has already emphasized on the road infrastructure of the country, which has been instrumental in driving vehicle sales in the country.
Segment wise, two-wheeler tyre remains the dominant segment in overall tyre market in Bangladesh.
Also, the two-wheeler fleet exceeds other vehicle fleets by a significant margin. On account of the largest population as well as vehicle fleet, Dhaka remains the leading geography witnessing tyre sales across Bangladesh.
Despite rising automobile sales, replacement segment continues to dominate the market, holding a significant majority share in tyre sales in the country.
Tyre sales in Bangladesh are expected to grow with the rising in purchasing power of people as well as growing investments and joint ventures of foreign market players. The country might become the exporting destination for global tyre manufacturers.
However, Bangladesh largely lacks in tyre manufacturing setups, which leads to tyre imports from other countries as the only feasible option to cater to the growing demand.
The company largely imports tyre from China, India, Indonesia, Thailand and Japan.
Several global tyre giants have also expressed interest in making significant investments by setting up their manufacturing units in the country.
This reflects an opportunity for local companies to set up an indigenous manufacturing base in Bangladesh and also enables foreign players to set up their localized production facilities to capture a significant market.
Increase in local manufacturing units will generate employment as well as help Bangladesh’s infrastructure and economy to grow.
However, the scenario is expected to witness a paradigm shift in the coming years as several global leading tyre companies intend to set up their manufacturing plants in the country.
Major companies like MRF, Dunlop, CEAT, and Goodyear have been selling their tyres in the country through their exclusive distributors.