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New Growth Strategies to Push New Vehicle Sales at a CAGR of 17%
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The two-wheeler industry in Bangladesh has grown significantly because of the demographic dividend, higher purchasing power, the growing economy, and the rising popularity of ridesharing services in the country. In cities like Dhaka, traffic-congested roads make two-wheelers the only time- and cost-efficient mode of transport. Bangladesh 2W industry is driven by international brands; however, local brands have begun competing with international brands and are striving to gain market share. The government has been supporting the international brands to set up manufacturing plants in the country, which would help the OEM as well as the consumers in terms of reducing operational cost and the overall cost of the vehicle. To support the growth of the 2W market, the Bangladesh government formulated the Motorcycle Industry Development Policy 2018 and reduced supplementary duty. However, more incentive programs will boost production and further the sales of two-wheelers in the country. With government support for foreign investment in the automotive sector, international OEMs are considering the possibility of local parts sourcing through collaboration or partnership with local manufacturers.
Author: Viroop Narla
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