Vehicle registration declines again in 2024

The issuance of new vehicle registrations in Bangladesh declined for the second straight year in 2024, dropping by 15 percent compared to 2023.

This happened as soaring inflation and rising dollar exchange rates took a toll on the transport sector, said officials and importers, adding that the changed political situation is another reason behind it.

Registrations of most vehicle types, including motorcycles and buses, declined, but registered SUVs increased by 11.45 percent, indicating a shift in consumer preferences among affluent buyers.

In contrast, the registration of buses and minibuses, crucial for public transport, dropped by 33.51 percent year-on-year, shows government data.

This decline highlights the strain on public transport system that relies heavily on these vehicles. This will cause further issues for the already struggling public transport system, experts said.

According to Bangladesh Road Transport Authority (BRTA) data, 3.08 lakh vehicles were registered in 2024, 14.69 percent fewer than in 2023, when 3.61 lakh vehicles were registered.

Vehicle registrations gradually increased from 2013 to 2019 before dropping in 2020 due to the pandemic. The highest number of registrations was in 2022, with 5.78 lakh vehicles, followed by a decline in 2023, shows BRTA data.

The registered vehicles in the country are 62.60 lakh now, of which 45.80 lakh are motorcycles.

REASONS BEHIND THE DECLINE

The decline in motorcycle registrations contributed significantly to the overall drop.

A total of 2.63 lakh motorcycles were registered in 2024, a 15.38 percent decrease from 2023, shows BRTA data.

Biplob Kumar Roy, general secretary of the Bangladesh Motorcycle Assemblers and Manufacturers Association (BMAMA), said high inflation has reduced purchasing power, which is reflected in the declining bike registrations.

Besides, bike dealers used to provide loans to consumers before the pandemic, but poor recovery rate reduced their investment, further affecting the situation, he told The Daily Star yesterday.

Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), cited three reasons for the decline.

First, the rise in the dollar exchange rate increased car prices, discouraging buyers. Second, inflation has impacted people's livelihoods. Third, a political shift has led to the absence of consumers involved in corruption, who were once major car buyers, he told The Daily Star yesterday.

A BRTA official also pointed to inflation and the political situation as causes for the drop.

Replying to question, he said vehicles registration remained suspended for over a month after miscreants set on fire BRTA headquarters amid student protest in July.

According to Bangladesh Road Transport Authority (BRTA) data, 3.08 lakh vehicles were registered in 2024, 14.69 percent fewer than in 2023, when 3.61 lakh vehicles were registered.

"But that may not be a reason because a car owner can register vehicle afterwards," he said.

RISE IN SUVS; FALL IN BUSES, MINIBUSES

Only 1,516 buses were registered in 2024, a 33.51 percent decrease from 2023, when 2,280 buses were registered.

The number of minibuses registered also fell by 22.34 percent, from 287 in 2023 to 220 in 2024.

Buses and minibuses are key elements of public transport, and their shortage has led to an increase in small vehicles like private cars and motorcycles.

According to BRTA data, 8,657 SUVs (BRTA registers such vehicles under "Jeep" category) were registered in 2024, up from 7,765 in 2023, an 11.45 percent increase.

Abdul Haque said SUV assemblers receive tax exemptions when importing parts, allowing them to sell the vehicles at a lower price, which may explain the rise in registrations.