The auto parts market has more than doubled in a race of a decade driven by rising car users in our country. Importers mostly import the engine, alternator, radiator, air conditioner, suspension, brake pads, spoiler, rim, tyre, trim package, body components, and other spare parts needed to serve this market.
The market size of auto parts was about Tk 1,300 crore to Tk 1,400 crore last year. The annual growth rate of this market was 10 to 12% for the last ten years.
The market size was not more than Tk 500 crore 10 years ago. However, this market is growing rapidly because of the rise of using reconditioned cars on the roads.
Bangladesh is an undisputed growth region for reconditioned cars for the last decades. 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%.
Around 65 reconditioned cars regularly sold in Bangladesh, which is the highest in the country’s history. Barvida says around 20,149 reconditioned cars sold in the FY 2016-17.
There has been a big jump in the purchasing capacity of the middle class. The lack of standard public transport in Dhaka and the affordable price of cars are also reasons for the boost.
Market Insiders said the market for automotive spare parts is unstructured, so any exact data about the industry is not readily available.
Most of the importers fetch reconditioned and new automobile parts from Thailand, China, Indonesia, Taiwan, Dubai and India. However, Thailand and Indonesia are the major sources.
At least 200 traders import auto spare parts and most of them have workshops business here in Bangladesh. More than 2,500 traders are involved in this automotive component business.
The light engineering sector manufactures some auto parts but the quantity is very low. However, all kinds of spare parts of motor cars are available in the market.