Bogura emerging as a hub for used automobiles

A major hub for the sale and repair of motor vehicles has gradually emerged in Bogura over the past two years, drawing an estimated investment of Tk 1,000 crore.

At least 15 showrooms and 20 workshops offering repairing services have been established along a five-kilometre stretch on the Baragola-Matidali highway.

New and reconditioned vehicles of renowned brands, including BMW and Mercedes-Benz, are also available here.

However, cars that have changed ownership multiple times are a big draw, with overall monthly sales reaching at least Tk 10 crore.

Moreover, around 2,000 people have found direct employment in this hub.

For this, many of the local investors now term Bogura as the heart of North Bengal's motor vehicle business.

Due to the global economic recession following the Covid-19 pandemic and a crisis of US dollars in Bangladesh, automobile sales have declined in Dhaka.

Many businesspeople believe Bogura offers an alternative investment destination for showrooms to keep their business running at reduced costs.

Photo: Mostafa Shabuj

The latest to open shop here is world-renowned South Korean automobile giant Hyundai.

"Hyundai has three service centres in Dhaka…an outlet was opened in Chattogram last November and this one in Bogura last March," Delowar Hossain, service manager of the outlet, told The Daily Star.

"We have not officially inaugurated the Bogura outlet yet. But we launched all services last March, including paint booths. We have already received orders for two cars," he said.

Asked why Hyundai chose the location for an outlet, Hossain said: "In short…to capture the North Bengal market."

He added: "Moreover, we have already sold over 50 cars in the northern districts. So those cars can easily avail servicing. Now Hyundai car owners in North Bengal no longer have to go to Dhaka for servicing."

Monowar Islam, owner of Jara Car House in Bogura, said: "I opened the business on a very small scale in 2019. Now I sell 12 to 14 cars every month."

"Nowadays businesspeople from many parts of the country come to Bogura to start a car business. So far, the investment here has exceeded Tk 1,000 crore," he said.

Regarding the buyers, Monowar said: "Generally, I sell cars in 64 districts of the country through brokers and my online platforms."

Mezbaul Jannat Piyas, owner of Bogura Active Auto Care Showroom, said: "I have been doing business here for one and a half years. I am now selling six to eight reconditioned cars a month and making a profit of Tk 3 lakh to Tk 5 lakh."

Regarding the rise of Bogura's vehicle trading hub, he said operational costs were lower here than in Dhaka while prices can be anywhere from Tk 1 lakh to Tk 3 lakh cheaper.

"The security deposit for a showroom in Dhaka is over Tk 1 crore. But it is possible to set up a new business with such a huge amount. That's why Bogura has become a promising place in North Bengal for the automobile business," he said.

Moreover, traders from Dhaka have opened workshops and are doing very good business in Bogura, Piyas added.

Alamgir Hossain, manager of Dhaka Auto Space in Bogura, said: "We came here from Dhaka in 2023…We are doing well…The business is growing rapidly and our workload is increasing too."

Bogra Toyota Motors showroom owner Abu Nasir told The Daily Star: "Two years ago there were only two car showrooms in Bogura. I started the business in 2022. I am selling around 7 to 10 cars every month. I mainly sell old cars."

Mehdi Hasan Anik, a customer arriving from Dhaka's Tangail last Sunday to buy a used microbus, told The Daily Star: "Car prices are lower in Bogura than in Dhaka. Moreover, there are a lot of additional facilities."

"Almost all the showrooms in Bogura offer instalment facilities. We are also selling cars at zero down payment. Besides, we give loans to buyers at 11 percent to 13 percent interest," Nasir said.

Aminur Rahman, general secretary of the Bogura Chamber of Commerce and Industry, said: "In the last two to three years, many automobile showrooms have been established in Bogura."

"Businesspeople from various parts of the country are investing money in the car business, which is a milestone for Bogura's economy," he added.