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Motorcycle sales drop amid high inflation, political changeover
JAGARAN CHAKMA
Motorcycle sales in Bangladesh have declined significantly as people are uncertain about buying luxury products amid the recent political changeover and higher inflation in the country, according to industry people.
As per a market assessment by ACI Motors, overall motorcycles sales fell by 12 percent year-on-year to 252,094 units during the January-August period of 2024.
Data of the Bangladesh Road Transport Authority (BRTA) shows that an average of 22,769 motorcycles were registered each month during the first half of this year while it was 25,868 units per month in 2023.
But aside from poor demand, the two-wheeler market is facing a product shortage as most local manufactures could not import the necessary components for difficulties in opening letters of credit.
Subrata Ranjan Das, executive director of ACI Motors, said both the regular and high-end motorcycle segments posted degrowth in sales during this year’s January-August period.
He added that motorcycle manufacturers and retailers in Bangladesh will have no scope to expand their markets until the country’s economy returns to complete normalcy.
Sales of ACI Motors, the local distributor of Japanese brand Yamaha, declined by about 4 percent year-on-year to 46,943 units during the eight-month period, as per the company’s market assessment.
Market data shows that the two-wheeler sales of other brands, such as TVS, Honda and Runner, also fell by an average of 12 percent at the same time.
Shah Muhammad Ashequr Rahman, chief marketing officer at Bangladesh Honda Private Limited, said although sales were in the slow lane throughout this year’s first half, demand fortunately increased in September.
According to him, sales of Honda motorcycles have increased in northern Bangladesh as peoples’ income in the region has grown. So, Rahman is hopeful that sales will grow further in coming days.
“We are trying to reach the doorsteps of people in rural areas as motorcycles are more necessary for them to commute compared to those living in urban areas,” he said.
While pointing out how Honda makes motorcycles for both regular and high-end segments, Rahman said they are gaining more customers’ trust each day by providing quality products at competitive prices.
Biplob Kumar Roy, chief executive officer of TVS Auto Bangladesh Limited, the local distributor of India’s TVS Motor Company, said their sales have fallen by around 20 percent this year.
“People are in uncertainty about the upcoming situation regrading politics and the economy,” he added.
TVS Auto sold only 15,000 motorcycles this August while it was 27,000 units the same month last year.
“We are witnessing a dull market as sales have been tight since second half of 2023,” Roy said.
“It is really tough for the business to survive in such a situation,” he added.
Roy also said people are unwilling to purchase luxury products such as motorcycles in the face of ongoing economic uncertainty.
Officials of Suzuki Bangladesh said their sales in the premium segment grew 11 percent year-on-year in the January-August period thanks increased demand for 150cc to 160cc bikes, particularly in the Gixxer series.
However, sales in the regular segment failed to meet expectations.
Overall sales of Suzuki motorcycles increased to 52,159 units during first eight months of the current year from 46,927 units during the same period of 2023.