Motorcycle sales in the slow lane ahead of Eid
Sales of motorcycles, particularly low-end ones, were disappointing ahead of the upcoming Eid-ul-Azha as the ongoing inflationary pressure has limited peoples' purchasing power, according to market players.
However, the demand for high-end models remains impressive, they said.
As such, overall sales dipped by around 28 per cent during the July-May period of the outgoing fiscal year (FY) while the high-end segment registered sales growth of about 18.5 per cent.
Of the high-end bike retailers, Yamaha and Suzuki achieved sales growth of 15 per cent and 12 per cent respectively during the 11-month period.
Other two-wheeler brands saw their sales drop by 15 to 42 per cent with a total of 420,922 units being sold in the July-May period, down from 586,650 units during the corresponding period of FY 2021-22.
Biplob Kumar Roy, chief executive officer of TVS Auto Bangladesh, said the situation is unimaginable as their sales declined by around 38 per cent year-on-year during the July-May period.
"We have yet to sell 60,000 units on the occasion of Eid-ul-Azha even though sales would normally cross 100,000 during this time," he added.
Roy blamed inflationary pressure for the lower sales as people are focusing on purchasing essential items rather than luxury products such as motorbikes amid the economic crisis.
"We do not have a clear idea on when the industry might get relief from these challenges," he said.
Roy believes the government should reduce the value-added tax on motorcycles by at least 5 per cent from the existing 15 per cent as it would encourage buyers and thereby give some relief to sellers.
"Sales of high-end motorcycles increased ahead of this Eid –as well as we made record in last Eid-ul-Fitr. But complete data regarding sales is yet to compile," said Subrata Ranjan Das, executive director of ACI Motors, the local distributor of Japanese brand Yamaha, citing the sales may be slight slow in this Eid.
"Our sales increased 15 per cent in the July-May period of the current fiscal," he added.
And while exact sales data for the month of June is yet to be compiled, the company expects a roughly 30 per cent increase.
Das said they were concerned about a potential fall in sales due to the ongoing inflationary pressure and US dollar shortage.
"But our sales record is healthy compared to other brands due to our good reputation and services," he added.
Shah Muhammad Ashequr Rahman, chief marketing officer of Bangladesh Honda Private Limited, said the overall market size is decreasing due to ongoing economic tension but sales were good ahead of Eid.
According to him, any further hikes in motorcycle prices could significantly deter potential buyers, particularly in the low-end segment, where price sensitivity is higher.
Motorcycle prices have risen by around 15 to 18 per cent as imports have become costlier amid the taka's devaluation against the US dollar during the past year.
But as more and more people are using motorcycles for their daily commute, the company expects demand will eventually increase once again, Rahman added.
"Around 45,000 units of high-end motorcycles could be sold ahead of Eid-ul-Azha this year while it was more than 41,000 units ahead of Eid-ul-Fitr," said AKM Touhidur Rahman, chief operating officer of Suzuki Bangladesh, a concern of Rancon Motorbikes Ltd.
"Overall, motorcycle sales are slower compared to last year," he added.
However, the company is seeing better sales than others brand as customers prefer Japanese products considering their quality.
Still, sales of all seven high-end models retailed by Suzuki have been slow this year, Rahman said.
Comments