Bangladesh Car Market Is Growing

Bangladesh Car Market Is Growing

Growing middle-class people, about 7% of the total
population in Bangladesh have already expanded their required lifestyle. And, a
private car is a now a necessity of each middle-class family rather than the
lifestyle.

Around 65 cars are being sold every day in Bangladesh now
which is the highest in the country’s history.

The import of passenger cars has increased threefold in the
last five years.

According to the Bangladesh Reconditioned Vehicles Importers
and Dealers Association (Barvida), around 7,353 reconditioned cars were sold in
FY 2012-13, and 20,149 cars were sold in FY 2016-17.

Why are car sales increasing in Bangladesh?

Lack of comfortable public transport

In our city, the comfort issue in public transport is still
a question mark. Although public transport service has been improved over the
time, there are still complains such as not getting a seat in the
sitting-service bus, misbehaviour of the conductors and so forth.

The lack of standard public transport in Dhaka and the
affordable price of cars are also reasons for the boost of car sales.

Currently, the market size for reconditioned cars is around
Tk 5,000 crore. Each year the size of the market is increasing by 15 to 20%,
according to Barvida.




Car loans

There has been a big jump in the purchasing capacity of the
middle class as well as an emergence of easier credit facilities.

Bank officials say that commercial banks cutting interest
rates is one of the reasons why more people are buying cars. In 2014 and 2015,
a car loan would cost you 15-16% in interest rates, but that has now dropped to
10-11%.

Nine out of ten buyers are using bank loans to get their
cars. Generally, a bank pays 50% of the car’s price with the condition that the
car would be registered under the bank’s name.

Ride-Sharing

So far, in Bangladesh, ride-sharing is being observed as a
tech-oriented business venture, a transformative one to our transportation
system.

Yearly, the ride-sharing industry is worth an estimated Tk
2,200 crore. Even then, it makes up only 23% of the transportation and has
already grabbed a larger portion of the overall transport industry.



Operators predict that the market would grow many folds in
the next two-three years.




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