In Bangladesh, there is a great increase and development in the automobile market of light commercial vehicles (also commonly known as LCVs) due to the increase in the business run by the young generation of Bangladesh.
In past years, we have seen a great shift from gasoline-powered vehicles to Electric Vehicles (also commonly called EVs).
In the LCV market, many electric variants have made their way toward the top. Light commercial vehicles constitute about 45% of the vehicle market in Bangladesh, and it continues to grow and expand daily.
In the previous two months, there was a 6% increase in the sales of light commercial vehicles. According to a report, 10% more sales were made than the previous year.
Thanks to the growth and development in the light commercial vehicles market, the market has obtained a size of 1,500 crores. The annual sales of these vehicles have also greatly increased; almost 12,000 units were sold last year. According to a report, about a 10% increase in sales was measured the previous year.
The market will continue to grow and expand as there is a rapid increase in business across the country. The pandemic compressed the growth of these businesses. However, as it is no longer present, the business and the market are stretching out to their max extent.
There is also a huge number of young people who are not employed in any company or organization. They make the most of the sales. By purchasing these light commercial vehicles, such as small pickup trucks and Vans, they use them to make their living. Due to this, the demand for light commercial vehicles is increasing daily.
The manufacturing sector must upgrade its production by implementing the latest technologies and more machinery if they want to keep up with the increasing demands of LCVs.
The most common businesses where these light commercial vehicles are used are mainly transportation goods or deliveries. Some other businesses include poultry and the transport of animals (such as cows and goats) within different parts of the country.
Aside from this great development and expenditure of the LCV market, there are still many challenges and difficulties that must be addressed if Bangladesh’s Automobile Sector wants to continue its growth at such great rates. First, more manufacturing plants should be open as there is an ongoing increase in the demand for LCVs.
The country should try to manufacture its vehicles, as there are new policies for importing vehicles (especially cars), making it difficult and costly to import. Also, there should be the adoption of EV technologies in the current market as the high fuel prices have also decreased some of the sales.
Moreover, the country should try to show off the good qualities of its automobile sector to catch the eye of foreign investors looking to invest in their business.
