The car price in Bangladesh still in 2018 is affordable for most citizens. The automotive industry in Bangladesh is the third largest in South Asia as the structure of car price in BD hasn’t changed drastically.
In the Fiscal Year’17-18
The proposed budget has not increased the supplementary duty placed on cars but significant changes are noticed in reductions in the SD. The important change takes place in the slab for Hybrid vehicles.
Hybrid vehicles with petrol engines that ranges from 1600cc to 2000cc gets 45% supplementary duty (down from 60%) where as 2000cc to 3000cc gets 60% SD (down from 150%).Meanwhile 3000cc to 4000cc gets 100% (down from 300%) and those exceeding 4000cc gets 300% supplementary duty (down from 500%).
Environment-friendly hybrid cars are helping in reducing carbon emissions. So, Bangladesh car sale bazar is selling hybrid cars more often now. The depreciation structure change made a noteworthy increase in the car price in bd of regular vehicles but it has also opened the doors for hybrids to come in and show its benefits and positive outcomes.
Reconditioned cars of more or less 4 to 5 years of age are brought to Bangladesh from Japan with a depreciation rate of 45 percent. The rate would come down to 40 percent from next fiscal year.
For Example, a reconditioned car which was used for four years in Japan. The reconditioned car was sold at $10,000 and brought to Bangladesh. The tax on that reconditioned car would be determined by accounting for 45 percent depreciation which means the new bd car price would be considered to be $5,500. Now after the cut in depreciation rate, the car price in Bangladesh would be $6,000.
Why are car bd car sales increasing?
Most car importers, vendors, and banks think that a big jump is noticed in the purchasing capacity of the middle class and the arrival of easier credit facilities.
The deficiency of standard public transport in Dhaka and the affordable price of cars are also reasons which led even the common man into buying a car, according to most car importers.
Bank official’s states that commercial banks are cutting interest rates which is one of the reasons why more people are buying cars and nine out of ten people are taking the benefit of bank loans.
A study conducted by a US-based global management consulting firm Boston Consulting Group (BCG) revealed an important fact that every year; 2 million Bangladeshis are achieving a middle-class economic status.
About 63 cars sold in Bangladesh every day, the highest in the country’s history with the number of imported cars having threefold increased since the 2012-13 fiscal year. In 2014 and 2015, a car loan would cost you 15-16% in interest rates, but that has now dropped to 10-11% in recent years.
The sale of cars in bd has witnessed huge a rise over the last few years, for the emergence of easy access to automobile loans with low interests.
A total number of 20,304 new cars have been registered with Bangladesh Road Transport Authority (BRTA) in 2016 which indicates over 55 new cars run in the streets of Bangladesh every day, according to the latest official data.
The number of total private passenger cars in the country is 3, 24,701 and that of these cars, 2, 55,622 are in Dhaka metropolitan area, according to the data of BRTA updated in August 2017.
37 percent (as high as 55 percent excluding the motorcycles) of the total motor vehicles registered in the country is in the streets of Dhaka alone has about; and about 70 percent and 80 percent of the country’s total buses and private cars, respectively. The mega city Dhaka is the most crowded and congested cities of the world.
In Bangladesh most of the car lovers prefer Toyota. Also, Bangladesh has good demand in recondition car as the car price in Bangladesh is low for reconditioned cars. Bangladesh car sale bazaar is ruled by reconditioned cars, therefore, the move to cut the depreciation rate will make car ownership difficult for the middle-class.
Today, the car price in Bangladesh is much more affordable than it was before. The middle class can easily afford reliable cars for their daily usage.