Motorcycle industry has emerged as one of the fastest growing industries in Bangladesh. Motorcycle offers an alternative and cheaper mode of transportation to the large population of Bangladesh with increasing purchasing power. As a result, the market of motorcycles in Bangladesh has been expanding rapidly. Today more than 1,000 units of motorcycle are sold daily. Annual local registration of motorcycle stood over 400,000 units in 2019, growing at the rate of 35% per annum since 2014.
The motorcycle market size stands at approximately $476 million as of 2017 in Bangladesh. The local industry has seen very healthy sales growth rates over the last few years. With an average growth rate of roughly 60% as of 2017, this trend is expected to carry through 2019 and into the foreseeable future.
The motorcycle industry needs more than 700 components to manufacture a bike. The local light engineering industry can make four components, namely drive chain, seat, stand, and battery.
Nearly 90 per cent of the motor bike parts are currently being imported from India, Japan, South Korea, china etc.
The government has reduced supplementary duties on imported parts to 20% from 25% used in local manufacturing of motorbikes, which has greatly reduced the cost of production. Given that 70% of the parts used in motorbike assembling and manufacturing are imported, while only 30% are sourced locally.
The motorbike parts industry has great potential to become a source of growth in the country. However, if the government gives in to BGMEA’s demands for the competitive devaluation of the currency, the local motorcycle industry will be hit hard.
The best fair organizer Eco Expo playing a great role to increase the potentiality of this sector.
