In the previous months, the government announced that the duties and taxes would be removed from all imported cars less than 2,500cc. This rule would only be implied in the customs duty of some imported vehicles.
However, all the other major taxes are lifted to promote more import of cars. The cost of the maintenance of car bodies, such as welding, repairs, and painting, will be done at a much lower price due to this order passed down by the government.
As the burden of these taxes is lifted, it will say a total of 40% on all body maintenance. Therefore, the cost of keeping a personal car will be very much more feasible than ever before. But despite this development, many problems still stand in the way of growth.
This is just the saving of expenses upon maintenance, and it has been expected that the import of a fully packed hybrid or even gasoline car will benefit about 85% to 125%. The value might be even higher for greater-value vehicles.
The Bangladesh government has taken many initiatives to promote the business in the port of high-quality cars. Moreover, daily commuters will also benefit from this government announcement. Now, purchasing and maintaining imported vehicles will be much more feasible than in previous years.
We might also see the establishment of more manufacturing plants in the country to ensure the growth of the Automobile sector. But the rising fuel prices might pose a great challenge to upgrading Bangladesh’s car market and manufacturing sector.
According to the Bangladesh Auto Industries Management Director, there can be a huge boost in car unit manufacture if the value of normal cars could be brought down enough to be affordable by middle-class people.
If that can be achieved by overcoming the Bangladesh Automobile Market’s challenges, then the annual production of cars will be expected to increase ten times.
The current annual production of the Bangladesh car market is approximately 17k a year. However, if the industries were to be boosted by government initiatives, the production would jump from 17k to 100,000 cars a year, which is ten times more than the current manufacture.
These new policies and initiatives taken by the government are a great step for the expenditure of Bangladesh’s Automobile Sector. Manufacturing more vehicles will give rise to more sales, and the overall GDP of the country will increase.
Currently, the automobile sector constitutes about eight to ten percent of the overall GDP. The car market’s growth will increase this to about 25 to 30 percent, which is double or even triple the existing number.
High demand for cars will also attract the eye of foreign investors and dealers to do business in Bangladesh, which will result in the establishment more factories and manufacturing plants.
