BIDA

Automobile

Bangladesh Automobile Industry

One of the sunrise industries, the four wheeled automobile industry is attracting investments with the recent entrance of several global brands. Bangladesh's automobile ecosystem offers huge opportunities for investments with stimulating growth in the demand for passenger and commercial vehicles, favorable economic policies, and attractive fiscal incentives.

Overview

Bangladesh is one of the most promising markets for the expansion of four-wheeled automobiles. The number of annual registered automobiles has more than doubled since 2013, amounting to about 26,000 units for passenger vehicles and 37,000 units for commercial ones (excluding auto-rickshaw, human hauler) in 2019.

Although commercial vehicles are dominant, the growing purchasing power of middle-income population has spurred passenger vehicle registration. Due to steadily increasing per capita income as well increasing economic activity, the demand for both passenger and commercial vehicles is expected to grow at a rapid pace.

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Automobile Policy 2020-Encourages local automobile assembly manufacturing

Annual market demand expected to cross 100,000 vehicles by 2024

SUV and Hybrid vehicles are the fastest growing segments

10 %
Passenger vehicle growth rate (2014-2019)
12%
Commercial vehicle growth rate (2014-2019)
6per 1,000 population
Penetration ratio
1082245
Commercial and passenger vehicles registered till 2019
63477
Passenger and commercial vehicles registered in 2019
80311
Passenger and commercial vehicles registered in 2017
28 %
Growth in SUVs registration 2013-2019
30
Share of hybrid vehicles in import 2018-19
37,389
Commercial Vehicle registered in 2019
26,088
Passenger vehicle registered in 2019

Key Players