Md.

Nahid Ali Mosleh, Id# 2005-3-10-068 Business Communication, BUS 231(2) Journal# 5, 29 July 2008

Motorcycle sales drop 30pc in FY 08

The Sale of Motorcycles have gone down by 30 percent in the 2007-08 fiscal year because of increasing fuel prices and erosion in consumers' buying capacity. Kazi Abul Basher, General Secretary of Bangladesh Motor Cycle Dealers Association (BMCDA) said that Motorcycle sales have dropped mainly due to hiking fuel price, increasing bike registration costs and overall economic slowdown in the last fiscal year. He, in addition, said that comparing to previous years, Motorcycle sales have dropped by 30 percent in last two years. He also mentioned that they (Seller of Motorcycle) are still experiencing a slump in selling of motorcycle since January 2007 when the present caretaker government took over. The most up-to-date petroleum price hike that was activated on July 1 was a new blow to the Tk 700 crore industry when the industry had just proceeded to the way of taking over its overall trade depression. Bangladesh's motorcycle market is mainly dominate by brands such as Mainly Honda, Hero Honda, Yamaha, and Bajaj are the popular brands which dominates the whole motorcycle market of Bangladesh. According to the BMCDA, in each year about 1 lakh (0.1million) units of motorcycles are sold in the local market. Sonargaon Motors, a Dhakas motorcycle sales hub, monthly sales figure was 40 in FY 2006-07 but the average monthly sales of the dealer came down to 15 -20 in FY 200-08, said an official of Sonargaon Motor's on New Eskaton Road.Officials of Halim Brothers, another motorcycle seller, also said that their sales have reduced this year. Among the buyers of motorcycles, representatives of pharmaceutical companies, shrimp and agro-businessmen are the major in the motorcycle market, according to the market source. Industry insiders have mentioned that sales of motorcycle can increase ahead of the national elections beacause Political party activists will use motorcycles during polls campaigns. According to a high official of Atlas Bangladesh Ltd, one of the country's major market players of the twowheeler auto industry, manly lower middle class and middle class people buy motorcycles. The recent hike on fuel price is a 'headache' for them and pushing them not motorcycles, he mentioned. He also said that his company is now selling about 3000 motorcycles in a month but before it used to sell 4000 motorcycles. In the local market, the price range of a motorcycle is from Tk 60,000 to Tk150,000. Last June, the government made petroleum price adjustment, in result, the price of diesel and kerosene is Tk 55 a litre from Tk 40 a litre. The price of octane is Tk 90 a litre now but it was Tk 67 a litre. The price of Petrol has increased by 34 percent or Tk 22 to TK 87 from its previous price Tk 65 a litre. Bangladesh Roads and Transport Authority (BRTA) recently increases motorcycle registration fee to Tk 13,000 from Tk11,000 to Tk 13,000 this fiscal year.

Source: The Daily Star, 22 June 2008