The motorcycle population in Bangladesh is estimated to grow 17 times faster than the corresponding figures for passenger cars within the next 5 years, driven mainly by its rising demand.
Now more than 1,000 motorcycles are sold daily, which was just half of the daily sales five years ago, according to data collected from industry insiders.
Operators now predict that the market would grow many folds in the next two-three years mostly because of the favourable policy and tariff structure that encourages assembling, leading to eventual manufacturing.
The cabinet already has given the nod to Motorcycle Industry Development Policy 2018 to facilitate the motorcycle manufacturing process to meet the domestic demand for low-cost modes of transport as well as to expand the export basket.
The policy has targeted to locally manufacture 5 lakh motorcycles a year by 2021 and double the number by 2027.
The increasing biker rate in Bangladesh has formed the bedrock for 4T lubricants in the motorcycles segment (“MCO”). By 2020, the MCO market is projected to reach 400– 450 million litres per year, will turn into a dominant market.
The distribution structure of MCO in Bangladesh traditionally covers the following channels: primary and secondary distributors, servicing workshops, automotive retail shops, and localized retail shops.
Due to the need to serve a large market base across diverse geographical landscapes, end-users typically purchase their lubricants from servicing workshops—followed by the automotive/ localized retail shops.