High engine capacity bikes see faster sales

The demand for motorcycles with a higher engine capacity is growing among bike enthusiasts in Bangladesh as these models are becoming increasingly safer and cheaper.

The demand for motorcycles with a cubic capacity (cc) of 150 achieved a 30 per cent growth last year while that of 125cc models grew only 13 per cent.

At the same time, 100cc to 110cc bikes witnessed 16 per cent growth in demand after the market started recovering from coronavirus-induced shocks, according to market players.

But in terms of market share, lower capacity engines still rule the roost with roughly 55 per cent more sales.

"In terms of sales growth, the demand for larger cc motorcycles was high in 2021 compared to other segments," said Subrata Ranjan Das, executive director of ACI Motors Ltd, the local distributor of Yamaha.

The sale of higher engine capacity motorcycles grew thanks to their reduced prices as well as a reduction in registration fees.

Customers prefer 150cc motorcycles due to comfort and extra safety features, Das said.

Besides, customers can now purchase a 150cc motorcycle at the same price as a 125cc bike. The price of a 125cc bike is around Tk 2 lakh while 150cc models basically cost the same.

"The economy returned to normalcy in 2021 and so, sales were better than in 2020," he added.

The executive director of ACI Motors went on to say that, barring any other unforeseen economic disaster, the demand for motorcycles will grow by 20 to 25 per cent annually until 2030.

A total of 375,252 motorcycles were sold in 2021, up 21 per cent compared to 311,016 units the year before, according to data from the Bangladesh Road Transport Authority (BRTA).

On average, monthly sales stood at about 31,271 units in 2021 while it was 25,918 units in 2020.

Market players are optimistic about achieving the growth projection by overcoming the challenges posed by the pandemic, which encouraged people to invest in manufacturing and assembling in Bangladesh.

Market insiders say around 5 lakh motorcycles were sold in 2019, up 25 per cent from 4 lakh units the previous year, but sales fell in 2020 due to the impact of Covid-19.

"All brands of motorcycles achieved good sales growth in 2021 and we are hopeful to continue this trend this year," said Hafizur Rahman Khan, president of the Motorcycle Manufacturers and Exporters Association.

He is optimistic about the market's development as the government has given a 20-year tax holiday for the automobile sector to help it grow.

Nine firms -- Japanese brands Honda, Suzuki and Yamaha, India's Bajaj, TVS and Hero, and Runner Automobiles of Bangladesh, Atlas Bangladesh Limited, and Grameen Motor -- have made the country almost self-sufficient in motorcycle manufacturing and assembly in the fast-growing market.

Of them, Runner Motors, Honda and Hero mainly manufacture personal two-wheelers.

Abdul Matlub Ahmad, chairman of Nitol Niloy Group, which assembles Hero-branded motorcycles, said the market demand of 100cc to 110cc bikes is still large as people purchase motorcycles to meet necessity instead of passion.

Shah Muhammad Ashequr Rahman, head of finance and commercial at Bangladesh Honda Pvt Ltd, said the market share of lower capacity engines is higher compared to that of 125cc and 150cc bikes.