Motorcycle sales slowly gaining momentum

As the economy is slowly recovering after being under lockdown for months, motorcycle sales have also increased. Last year, the number of motorcycle registrations went down by almost 10%, according to data published by Bangladesh Road Transport Authority (BRTA).

However, their sales are gradually reaching pre-pandemic figures. As of May this year, the number of registrations has gone up and already reached 133,044 units. It is likely that with the vaccination process gaining momentum, many are likely to avoid public transport as much as possible if they can afford a personal vehicle which is more preferred for social distancing, pushing up the demand for two-wheelers.

After the sales dropped last year to 311,016 units, from 401,452 units the year before, the authorities came up with a 50% cut on registration duty that has been effective since earlier this year. According to industry insiders, this has helped gain momentum and encouraged customers to purchase.

Currently, the registration cost of motorcycles with engine capacity up to 100cc is Tk 2,000, which is down from Tk 4,200 in the previous year.  For engine capacities above 100cc, the registration cost is Tk 3,000, down from Tk 5,600.

On top of that, the motorcycle industry has benefited from a lower VAT rate since 2018.

With the entire world under the grasp of the novel coronavirus, the global market itself went down 14% from the previous year to 56.5 million in 2020. Almost all the motorcycle markets in different countries around the world were faced with a similar fate.

For comparison, the Indian motorcycle market has also reacted in a similar manner, with sales increasing this year compared to that of 2020. But still, both the countries have not yet been able to reach the pre-pandemic figures.

During 2020, India witnessed a fall in sales by 5 million units, Indonesia, the Philippines and Vietnam too experienced a decline with 2.9 million, 0.7 million, and 0.5 million, respectively.

According to Hafizur Rahman Khan, the president of Motorcycle Manufacturers and Exporters Association, almost all brands are gaining momentum in sales and manufacturers are hopeful that businesses will soon recover from the losses incurred in the past year.