Bangladesh is experiencing a rapid economic growth. It is now a market which demands its own individual plan of action from global top brands. Regardless of the industry, Bangladesh is showing its true potential as a developing economy in the 21st century!
The automotive industry in Bangladesh is such an example. Although tiny in comparison to other countries across the globe, it is making an impact. For a developing nation, Bangladesh is performing incredibly well where approximately 70 cars are being sold daily. This is a new milestone in the country’s short vehicle industry, but it is sure to create new records every year. The number of cars sold has tripled in the last 5 years since 2013.
Bangladesh imports popular cars from top brands, as well as, cost effective cars considering the high taxes levied on imported cars. The public demand is growing rapidly for globally popular cars by the upper class. The upper–middle class shows rising interest in moderately priced reconditioned cars. Due to the introduction of credit facilities, the middle class is now experiencing in increased purchasing power. This coupled with the lack of proper public transportation has seen a massive spike in the sale of reconditioned, cost effective cars in Bangladesh.
Let’s have a quick snapshot of the most popular cars in Bangladesh:
|Make & Model||Price Range|
|10 to 13+ Lakhs BDT|
|20 to 25+ Lakhs BDT|
70 to 90+ Lakhs BDT
20 to 25+ Lakhs BDT
10 to 15+ Lakhs BDT
7 to 10+ Lakhs BDT
12 to 17+ Lakhs BDT
Let’s look at some of the factors which have contributed to this boost in purchasing power of the consumers in Bangladesh.
Boost in Purchasing Power
Bangladesh Bureau of Statistics (BBS) reports that the per capita income of Bangladesh just a decade ago was below 500 US Dollars. According to the most recent reports by 2017, that rose to over 1,700 US Dollars. The Boston Consulting Group (BCG) conducted a study and reports that every year approximately 2 million more enter the middles class economic status in Bangladesh.
Needless to say, the numbers speak for themselves as the nation is going through an economic revival. In terms of the motor vehicle industry of Bangladesh, one of the most influencing factors has been bank loans. More and more consumer banking institutions are allowing car loans at better rates. A standard car loan in 2015 was above 15% which today is less than 10%. Commercial banks are cutting interest rates and this has boosted consumer spending on vehicles. A commercial bank states that a staggering 15 thousand car loans were granted by their institution this year, beating the previous year by almost 20%. A large percentage of consumers are using car loans for their new or used vehicles in Bangladesh.
The rate of loan defaulters are increasing and the rate of timely payments are also increasing. Due to better ways to track cars with registration, model & other traffic improvements, it has become an influencing factor. This is one of the most successful consumer lending industries in Bangladesh today, in terms of success in loans returned, payments made, etc.
So what are some of the most popular cars in Bangladesh? What is the standard car price in Bangladesh? How are some of the top brands performing in this market? Are luxury cars the only option or are there cost effective cars in Bangladesh for the rising numbers of the middle class?
All the questions that may pop into your head will be answered. But first, let’s look at which cars are trending in this market. Let’s look at the top five most selling cars in Bangladesh:
It will be of no surprise to anyone in the world that Toyota Corolla is simply one of the best selling cars worldwide. Regardless, it is most definitely the top selling car in Bangladesh. In fact, as you will realize as you look through this short Top 5 list, Toyota offers most of the popular & cost effective cars in Bangladesh. You are more than likely to spot the Toyota Corolla model in every street here. Since the introduction of the first Toyota Corolla in November 1966, it continues to the model which is sold mostly in every part of Bangladesh.
You will be able to find a decent Toyota Corolla X in Dhaka well within 13 lakhs BDT. New or pristine condition, reconditioned models will cost you more.
The next car on our list is another Toyota bestseller, the Toyota Noah. While Corolla is the compact sedan which is most popular, Noah is the minivan or the big car for the Bangladeshi roads. Just like the Corolla, a Noah of every year & model can spotted either parked or running in every street of Bangladesh since its introduction in 2001. The most popular car in Bangladesh for family trips, picnics & sightseeing offering seating for up to 10 people.
Noah is mostly used in Bangladesh as family cars. While older models can be found for much cheaper as little as 10 lakhs BDT, it is inappropriate for everyday family usage. Newer models will cost you 20 plus lakhs BDT.
The Mitsubishi Pajero is a name associated with luxury & power. Since its introduction in 1982, it continues to parade the roads of Bangladesh with pride. Making its name in the top 5 most selling cars, Pajero shows the purchasing power on display by the elites in Bangladesh. It is a big car, an SUV which is most closely linked to the financial, political, or spending power of its owners. While not considered to be a luxury car such as the likes of Mercedes–Benz & BMW, it has created its own reputation in the streets of Bangladesh.
A monstrous Pajero of an older model can be found well within 50 lakhs BDT. But if you are looking to enjoy the perks of these truly luxury car than consider shelling out as much 90 plus lakhs BDT.
Toyota Allion is easily one of the best of luxurious yet not too costly option available in Bangladesh. Introduced in 2001, it was the car that moved past the Toyota Carina. It is a hybrid of luxury & economy, a sedan that is stylish and comfortable. It is appealing to the eye and the versions such as the Premio, A15, etc. are upgrades with more added features to appeal to the demands of the current generation. It is easily one of the smoothest rides, which is both reliable and stylish.
There are many versions of the Allion and a used model is available for a little over 15 lakhs BDT. But newer models of the Premio will cost you much more.
In the fifth & final ranking of this list, we have a tie between some of the other popular & the most selling Toyotas in Bangladesh. These 3 cars, the Axio, Probox & Fielder are on the same level in terms of sales, popularity, functionality and affordability.
Toyota Axio falls in the broader Corolla category. In most countries it is known as one of the generations or version of just Corolla. But it was introduced and continues to be Axio in Bangladesh and some other developing Asian countries. The compact sedan is one of the cheaper alternatives to the Toyota Allion.
In price, Axio is around the same exact range of Corolla, so a decent model can be found within 12 lakhs BDT, but newer models or the hatchback can cost a bit more.
Toyota Probox is a great hatchback which is most definitely one of the most cost effective cars in Bangladesh. While giving plenty of space like a sedan, the extended length with its hatchback allows for additional boot storage. Given the majority of vehicles in Bangladesh operate with a CNG tank, the extra space is very handy for the tank and then you normal cargo.
Probox is easily one of the most cost effective cars in Bangladesh or at least in this particular list. An older model could easily be bought for less than 10 lakhs BDT.
Toyota Fielder is another hatchback which is a more stylish version of the Probox. While it offers similar features, spacing and benefits, it is in a more sleek design with more updated features. It is much more expensive than the Probox but given its look, that is justified.
A nice Fielder can be found in the local market for around 17 lakhs BDT and newer models especially in the color Black will cost you north of 20 lakhs BDT.
It should not come as a surprise that there is a lack of other top brands except one of the top brands globally, Toyota. Simply because of the fact that, Toyota parts are more widely available making it more cost effective considering car prices in Bangladesh. Compared to other makes such as Hyundai, Mitsubishi or any other top brands, Toyota is easily the most cost effective and most available.
Toyota also offers other luxurious models which have not been made part of this list because of they are not the most selling in the local Bangladeshi market. Cars are required to be cost effective considering fuel consumption, compact, rough roads, etc. to be popular in this region. Toyota offers a good mix of luxury and practicality considering the streets of the region, and that is why it is one of the most sold top brands of cars in Bangladesh.
Hopefully this article has given you some new information and if not, then reassured you of what you know already regarding the motor vehicle industry of Bangladesh. Share your thoughts on the topic and if you agree or disagree with what was stated here.
I hope that you find your favorite car by exploring the locality and if you are serious about it then visit online marketplaces such as Bikroy.com/vehicles today. You will find thousands of listings to find the best car for you, considering your price range, make and model, not just in Dhaka but all over the country.
I have presented my personal thoughts regarding the automobile industry as per my best knowledge and research. I recommend that you do your research before buying your next car. So, don’t just use resources available online, but you can also make a few visits to car showrooms.
I highly recommend making the most of online resources such as social networks, and specialized marketplaces such as Bikroy.com.