ACI Motors conducted a market assessment, revealing a 28 percent year-on-year decrease in motorcycle sales to 461,805 units in 2023, surpassing the decline witnessed during the COVID-19 pandemic. Subrata Ranjan Das, the executive director of ACI Motors, attributed the overall sales decline to ongoing economic challenges both domestically and internationally.
He explained that the sales downturn was influenced by a 10 percent average increase in two-wheeler prices due to the direct impact of a US dollar shortage coupled with inflationary pressures.
Despite the overall decline, high-end motorcycles experienced a year-on-year growth of approximately 13 percent in 2023, as consumers in the premium segment seemed less affected by the prevailing economic climate.
Das noted that until the overall economic situation improves, there is limited scope for motorcycle manufacturers and retailers to expand their market.
While ACI Motors, the local distributor of the Japanese brand Yamaha, saw a 12 percent year-on-year growth in sales to 70,046 units in 2023, other brands, including TVS, Honda, and Runner, experienced an average decline ranging from 22 to 44 percent during the same period.
Shah Muhammad Ashequr Rahman, head of finance and commercial at Bangladesh Honda Private Limited (BHL), expressed skepticism about achieving adequate sales revival within the first half of 2024.
The motorcycle registration fee is currently at Tk 10,000 for two years and Tk 22,000 for 10 years. Additionally, he advocated for lowering the import duty on scooters from 113 percent to 89 percent to address affordability issues.
Biplob Kumar Roy, CEO of TVS Auto Bangladesh Limited, the local distributor of India’s TVS Motor Company, reported a 41 percent sales decline to 60,596 units in 2023. He highlighted the challenging market conditions and hinted at potential layoffs if the situation persists.
