The country’s car market has witnessed a rapid growth for last several years as money flow has increased in the hands of a certain group of people in recent times, experts said.
They opined the automobile industry is enjoying their best time due to increasing ridesharing, easy financing from banks and developing road infrastructure in the country.
Both the reconditioned and brand new car market stood at Tk 50 billion in 2017, according to market insiders.
Toyota dominated the automobile market with 90 percent market share. It was followed by Japanese automotive manufacturers Nissan, Honda and Mitsubishi respectively.
On the other hand, the reconditioned vehicle import stood at 23,102 which were 214 percent or 15,749 higher over the last six years in the last fiscal year (FY18).
The reconditioned vehicles were 7,353 in FY13, 14,427 in FY14, 17,055 in FY15, 19,467 in FY16, and 20,149 in FY17 respectively, according to the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA). BARVIDA president Habib Ullah Dawn said the car demands rising in the country due to rising ridesharing services, developing of road infrastructure and low interest of car loans. Many people are purchasing cars for ridesharing, which helped them earn some extra money after personal use, he said.
He said, “Automobile industry has a huge prospect in the country. Hence, the government should improve road infrastructure further to boost this sector.”
The government has earned Tk 37 billion in last fiscal year.
If the government provides proper policy support to this sector, the revenue earnings will go up further.
Former BARVIDA president Abdul Hamid Sharif told this correspondent that the cars’ demand has increased over the time as the country’s economic growth rose significantly.
“Besides, the purchasing power of the people has recently increased. At the same time, country’s road infrastructure, especially in Dhaka, has been developed more which has helped flourish this sector.”
Sharif put emphasis on the need for establishing commercial multi-storied car parking systems as well as adopting modern technology to reduce traffic congestion in the city, which will also help to boost this sector.
He further said car elevator parking systems can also be introduced in the country where large areas are unavailable to set up multi-storied car parking systems.