Automobile sales down 44pc

Business Desk :
Automobile sales have dropped by almost 44% in the first six months of 2023 compared to the same period last year, according to Bangladesh Road Transport Authority (BRTA) data.
The decline was driven by a number of factors, including difficulties in opening letters of credit (LCs) faced by car importers, the ongoing foreign-exchange reserves crisis and higher cost of vehicles, said sector insiders.

The BRTA data showed that 5,330 cars were registered in the first six months of the current calendar year, down from 9,394 in the same period of 2022.
Car import data over the past couple of years also support the dull trend in the local auto business.

The number of vehicle imports fell to 6,612 in the first half of 2022, from 15,153 in the second half of 2021.
Mohammed Shahidul Islam, secretary-general of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida) and chairman of auto seller HNS Group, said that difficulties in opening letters of credit (LCs) and local currency devaluation are significantly impacting car sales and imports.

He suggested that the automobile import duty structure should be reformed to boost sales, calling for transforming the country from an import-based to a manufacturing one.
The cost of vehicles, including cars, has increased by 20% due to the taka’s devaluation against the US dollar.

Another contributing factor is the government raising all types of fuel prices to a record high in August last year, ranging from at least 42% to the highest 51.7%.
Islam insisted that cars are no longer a luxury good and should be categorized as one.