38pc fall in bike sales in H1 2023

Motorbike sales in Bangladesh have seen a 38-percent drop in the first six months of 2023 than the same period last year, according to the road-transport body.
The number of registered motorcycles countrywide was 247,642 from January to June 2022 while 155,029 got registered from January to June 2023, disclosed the Bangladesh Road Transport Authority (BRTA) data.
Industry insiders, too, claimed the overall growth of the two-wheelers fell by 28 per cent in fiscal year (FY) 2022-2023 than FY2022.
The decline was driven by factors like higher living costs, fluid microeconomics, dwindling foreign-exchange reserves and an uptrend in two-wheeler vehicle prices, they said.
Difficulty in opening letters of credit (LCs) and inflation are also putting a strain on consumer spending, making it more difficult for people to afford to buy new motorcycles.
The government's policy support and retail financing facility to customers can retain sales growth in the coming days, according to trade insiders.
The local market is dominated by seven brands-Japanese Honda, Suzuki and Yamaha, Indian Bajaj, TVS and Hero, and Bangladeshi Runner.
Multiple app-based on-demand motorbike ride-sharing services also played a crucial role in expanding the two-wheeler vehicle market here.
According to a 2018 study by the Policy Research Institute, the ride-sharing industry in Bangladesh was worth Tk 22 billion, thereby accounting for 23 per cent of the transport sector.
The cost of two-wheelers has increased by 10-12 per cent caused by taka's depreciation against US dollar.
A Bangladesh Trade and Tariff Commission report reveals that the country aims to produce 1.0-million motorcycles by 2027 in line with to the government's motorcycle industry development policy.
A Yamaha survey shows one in 161 persons in Bangladesh using a motorbike, one in 20 in India and one in 17 in Pakistan in their day-to-day life.
On the other hand, the proportion is so close in Malaysia, Thailand and Vietnam-one in 4-5 uses a bike.
Dr FH Ansarey, managing director of ACI Motors that distributes Yamaha, said overall growth fell by 28 per cent mainly due to current microeconomic situation, increased bike costs, difficulty in LC opening and troubled commercial banks.
However, the sales of Yamaha surged by 31 per cent as the demand for the high-end bike rose enormously, he pointed out.
Yamaha has already been able to grab a 15 per cent market share, according to Dr Ansarey.
Yamaha 150cc motorcycle is in great demand as witnessed by a substantial sales volume.
Dr Ansarey also pointed out complexity at the port that ultimately hurts business.
Biplob Kumar Roy, CEO of TVS Auto Bangladesh Ltd, suggested that the government provide policy support as foreign investment is available now.
As many as 3.0-million people are directly and indirectly involved with the sector, he said.
VAT for customers should be waived to increase the sales volume, suggested Mr Roy, also general secretary of the Bangladesh Motorcycle Assemblers and Manufacturers' Association.
TVS has registered a 40-per cent drop in the sales of different motorcycles, he said, adding that the current economic climate, inflation and poor purchasing power of people are hitting the industry hard.
There should be retail financing support to make the industry vibrant again, Roy said.
Bangladesh Motorcycle Dealers' Association president Abdul Halim spoke about customers' disinterest in motorcycle purchase amid inflation.
He has seen an 80-90 per cent fall in bike sales in the past six months.
The demand for 100cc and 110cc bikes is much higher, said Mr Halim, also the proprietor of M/S Abul Halim & Brothers that sells brands like Bajaj, TVS and Hero.
Wahid Murad, head of media and PR, Runner Group, said Runner's market share in the industry declined by 7.0-8.0 per cent from 11 per cent.
On the other hand, the two-wheeler sales reduced by 15 per cent amid the current economic fluidity, he said.
Higher living costs, rising fatalities in bike crashes and mandatory driving licence are also affecting the growth of the industry, he observed.
However, rural people tend to buy Runner's 80cc bikes.
Bajaj, TVS, Hero, Honda, Yamaha, Suzuki, Mahindra and a few other Chinese brands are imported by local traders.
On the other hand, Runner and Jamuna bike brands are manufactured locally.
Fifteen well-established brands are making their business in Bangladesh. Of them, importers control 86 per cent and local companies have a 14-per cent share.

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