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Jammed road networks getting crammed with bike boom

FE Report | Sunday, 5 April 2015



Motorbike has become popular option for professionals and working people across the country thanks to its size and price.
Industry people and bikers pointed out nagging traffic jams in Dhaka and other cities, growing trend in per-capita income, positive changes in rural economy, passion for speed among youths and affordable prices as the key components behind the business boom.
They also identified lack of bike-friendly roads infrastructure, some unfriendly revenue measures, absence of retail bank financing for the potential buyers, not having proper vendor-development scheme, political turbulence and inadequate awareness among the bikers about road safety as the main barriers to the business.
"Yes, the market of motorbikes has gradually been going up. Now, the vehicle is no longer a luxury item here even for the middle-income group as per-capita income has gone up significantly," said Maksumul Azim, Deputy Head of Operations and Logistics of Uttara Motors.
Uttara Motors is a sister concern of Uttara Group of Companies that supplies bikes of Bajaj Group in Bangladesh.
He said Bangladesh has seen its economy expand at an annual rate of more than 6 per cent over the past several years, while per-capita income is close to $1,200 -- seen necessary for motorbikes to be widely adopted.
He said the market for motorbikes is expected to expand from the current 0.2 million (two lakh) units to 0.5 million (five lakh) over the next four to five years in accordance with the average annual growth of 20 per cent.
Talking about the move for setting up manufacturing plant, he said their company registered with the Board of Investment (BoI) to this effect but turned back from installation of manufacturing plant because of an SRO (Statutory Regulatory Order) issued in 2010.
Explaining the SRO, he said a manufacturer will have to install capital machinery compulsorily fixed by the government to manufacture parts and machinery, which is not financially viable and is unexpected.
Head of Two-wheeler of TVS Auto Bangladesh Biplob Kumar Roy said the motorcycle sale could have been much more if there had been no political impasse and no frustration for growers in getting fair prices of their products in the remotest areas of the country.
He said there are many executives and employees in the country who could not afford a bike of minimum standard by making full payment of Tk 150,000 at a time.
"If there is retail bank financing facility like other countries for those people, many people will definitely throng the banks to have the option and it would be a great thing for buyers, bankers and suppliers," he added.
There is another restriction: assemblers could not bring a bike of over 155cc size despite having immense interest of young buyers.
Talking about the motorbike business, Adidur Rahman, deputy manager of Karnaphuli Industries Ltd that supplies Japanese-brand Yamaha and Chinese-brand Haojue, said a good number of officials and employees, especially in private offices, come to have their bikes only to reach office in time in this mushrooming city of traffic jam.
"People used to think too much and take decision in their families before buying a motorcycle just five to six years ago. Now, affording a bike is nothing for most families as it has become an essential item," he said.
He informed that Karnaphuli Industries like other companies already has taken initiative for investing in manufacturing unit for bikes in view of its growing market size.
Director for International Operations of Runner Group Anwarul Azim sees many reasons why the bike market is growing.
"Remittance is one of them as you cannot find any family in rural areas which receive money from abroad without motorcycle," he said.
The companies are now focusing on 125cc, 135cc and 150cc products instead of 80cc, 100cc and 110cc because of growing market demands.     
Manik Sanyal, a student of Dhaka University who has a pulsar, said he bought the bike five months ago from a showroom in Mirpur to leapfrog traffic jams in the capital.
"You'll not be surprised in coming days when you find bike as the dominant mode of transport in Dhaka. Roads-and even footpaths-have almost gone under the occupation of bikers although it is not proper practice," he added.   
The industry also turned into a great source of employment as nearly 0.5 million people have been engaged in jobs that include sales, service and spares.
According to Bangladesh Road Transport Authority (BRTA) statistics, a total of 90,684 bikes were registered with the licensing authority in 2014. The number grew from 85,808 of the previous year.
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