High-end motorcycle sales slower this Eid
Sales of motorcycles, particularly high-end ones, ahead of Eid-ul-Fitr were impressive over the last one decade but this year is quite different as demand is low due to an increase in inflationary pressure, economic crisis and an increase in prices of the two-wheelers.
High-end motorcycle sales declined by 20 per cent year-on-year in Bangladesh ahead of Eid due to the current slowdown in demand, according to industry insiders.
Even attractive offers of discounts ahead of Ramadan and Eid festival could not help motorcycle sales grow, said market insiders.
As per Bangladesh's context, motorcycles with engine capacities between 150cc and 165cc are considered high-end motorcycles, according to market insiders.
"Around 19,000 units of high-end motorcycles could end up being sold this year ahead of Eid while it was over 27,000 units last year," said AKM Touhidur Rahman, chief operating officer of Suzuki Bangladesh of Rancon Motorbikes Ltd.
He made this prediction on the basis of previous records as sales of motorcycles were higher during this period compared to the rest of the year.
"Overall motorcycle sales will come down to 45,000 units during Ramadan and ahead of Eid this time whereas it was 65,000 units last year due to sales being slow in coming about," he said.
Now sale of high-end motorcycles accounts for around 42 per cent of the overall sales of the two-wheelers, he said.
According to him, Suzuki retails seven models of high-end two-wheelers and sales of all models have been slow this year.
According to market insiders, average monthly high-end motorcycle sales stood at around 20,000 units whereas it came down to 14,000 units per month during the last three months.
He also said the price of motorcycles increased by around 18 per cent during the past one year due to a dollar price hike but the retailers increased it by at best 8 per cent to give relief to customers from the extra expenditure.
"Sales of high-end motorcycles may decline by 20 per cent in Ramadan and Eid compared to that last year due to the ongoing economic crisis, increase of dollar price and higher inflationary pressure," said Subrata Ranjan Das, executive director of ACI Motors, the local distributor of the Japanese brand Yamaha.
"We have six high-end models between 150cc and 165cc," he said.
Purchasing power of people has declined as living costs rose due to the price hike of all essential products, Das said.
Besides, the prices of motorcycles increased by around 18 per cent because of the rise in the prices of the dollar over the past year.
Inflation in Bangladesh jumped to a seven-month high of 9.33 per cent in March as food prices rose and the adjustment of oil, gas, and electricity prices took hold, highlighting the pains low-income households are going through.
The American greenback has strengthened by about 25 per cent against the taka in the last one year, making imports costlier for Bangladesh.
Dileep Banerjee, chief executive officer of Uttara Motors Limited, the distributor of Indian motorcycle giant Bajaj, said high-end motorcycle sales were comparatively better than that of the other models but the overall market was dull.
Basically, customers who purchase high-end motorcycles make the purchase with the income of their guardians, which was why they did not bother with how much money was being spent and so for this reason sales have been slightly better than the low-end ones, he said.
Shah Muhammad Ashequr Rahman, CFO of Bangladesh Honda Private Limited, a joint venture between Japan's Honda Motor Co and state-owned Bangladesh Steel Engineering Corporation, said they have two models of high-end motorcycles, X blade and Hornet, of 150cc and 165cc respectively whose sales were also coming about slow.
Meanwhile, the Bangladesh Motorcycle Assemblers and Manufacturers Association applied to the ministry of road transport and highways on April 5 to allow motorcycles to ply the highways ahead of Eid.
Rahman said the young generation usually target to purchase a motorcycle ahead of Eid, but this year was different due to the ongoing overall economic situation.
Biplob Kumar Roy, chief executive officer of TVS Auto Bangladesh, said sales of motorcycles were coming about very slowly ahead of Eid which could not be imagined in other years.
Usually, there is high demand for motorcycles, especially those of higher engine capacities, but this year sales of all motorcycles were dull.
According to him, the demand for motorcycles had declined by around 30 per cent to 40 per cent year-on-year during the first quarter of this year.
TVS is offering Tk 18,000 to Tk 26,000 in cashbacks on the basis of the model of two-wheeler being purchased.
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