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Motorcycle market sees sales drop

A result of BRTA’s decision on mandatory licence for registration, insiders say
PHOTO: HABIBUR RAHMAN
JAGARAN CHAKMA
Sales growth in the local two-wheeler industry has slowed ever since the government made it mandatory for owners to produce a valid driver’s licence when registering their motorcycle.
In the first two months (July-August) of the current fiscal year, a total of 98,690 motorcycles were sold across the country while it was 89,355 units during the same period in fiscal 2021-22, according to market players.
Now although this indicates an overall growth of 10 per cent, the previous annual hike in sales was 20 per cent on average, they said.
In early July, the Bangladesh Road Transport Authority (BRTA) made it compulsory to have a valid driver’s licence for attaining a motorcycle registration number. The BRTA took this decision in a bid to reduce the number of accidents that occur for allowing inexperienced and untrained drivers on the road.
The rule will be effective from September 15.
Subrata Ranjan Das, executive director of ACI Motors Limited, the local distributor of Japanese brand Yamaha, said motorcycle sales slowed suddenly following the BRTA’s decision.
Another factor which is impeding sales is that the two-wheeler prices have increased by an average of around 8 per cent due to the taka’s depreciation against the US dollar.
Besides, people are reluctant to avail a driver’s licence as it takes around 190 days to get one under the existing process.
“So, this decision had an impact on the motorcycle industry,” he added.
However, Das supported the logic behind the BRTA’s decision as it would indeed help reduce the number of road accidents.
And although the overall sales of two-wheelers have slowed, the sale of high-end motorcycles increased by 28 per cent in the July-August period of the ongoing fiscal year.
Referring to their market assessment report, the executive director of ACI Motors said different motorcycle brands sold a total of 42,599 high-end units in the first two months of fiscal 2021-23 while it was 33,397 units during the same period last year.
Das went on to say that the transport cost of using a two-wheeler is still cheaper than larger vehicles, making it a more suitable way to get around despite the increase in buying cost.
Abdul Matlub Ahmad, chairman of Nitol Niloy Group, the local distributor of India’s Hero MotoCrop, said the temporary slowdown in sales is because people do not understand how the government’s decision is beneficial in the long-run.
“We need to ensure the safety of motorcycle users along with business growth and so, both the bikers and sellers need to follow the rules and regulations to avoid long-term losses,” he added.
Ahmad believes that while motorcycles are not suitable for use on highways or long-haul journeys, they are still hugely beneficial for the general public as it shortens the travel time in congested cities while also providing better fuel economy compared to other vehicles.
So, he thinks the market will not fall further in the future and instead, sales will increase due to the recent hike in energy prices.
“The number of motorcycle users will increase in the future as it is a cheaper mode of transport compared to other vehicles,” he said.
In regards to reducing road accidents, Ahmad suggested practicing careful driving and creating awareness about traffic rules.
Shah Muhammad Ashequr Rahman, head of finance and commercial at Bangladesh Honda Private Limited (BHL), a joint venture between Japan’s Honda Motor Co and the state-owned Bangladesh Steel Engineering Corporation, said overall sales came down by as much as 28 per cent in August compared to the same month last year.
According to BHL estimates, a total of around 44,000 motorcycles were sold in August while it was around 60,000 units at the same time last year.
Professor Md Hadiuzzaman, director of the Accident Research Institute of the Bangladesh University of Engineering and Technology, said making it mandatory to have a valid driver’s licence to register a motorcycle means that the vehicle would only be handed over to a skilled biker.
“This would help save lives so even though the industry will suffer for the time being, the decision will have a positive long-term impact for the industry and the safety of bikers,” he added.
He then stressed on the need for modernising the licensing process of the BRTA to ensure that applicants can get their licence easily rather than having to manage one through unfair means.
Referring to their research, Hadiuzzaman said around 35 per cent of all road accidents in the country involve two-wheelers and 75 per cent of these accidents occur because the motorcycle driver was speeding recklessly.
Subrata Ranjan Das, executive director of ACI Motors Limited, the local distributor of Japanese brand Yamaha, said motorcycle sales slowed suddenly following the BRTA’s decision