Bangladesh: Vehicle registration drops 15% to a decade low in 2024

In Bangladesh, vehicle registration dropped 15% to a decade low in 2024. Registration of almost all types of vehicles including private car, bus, truck, motorcycle and pickup van has declined for the second straight year in 2024, according to a Bangladesh Road Transport Authority (BRTA) report. The sluggish economy, high inflation and rising dollar exchange rates took a toll on the transport sector, said car dealers and importers. They also blame the changed political situation and political uncertainty behind this drop.Segments including buses, minibuses, trucks, mini trucks, auto rickshaws, tankers, tractors, and motorcycles were the most affected. The BRTA registers vehicles under 20 segments, and no major segment saw sales near those of two years ago.
According to BRTA data, 3.08 lakh vehicles were registered in 2024, 14.69 percent fewer than in 2023, when 3.61 lakh vehicles were registered. The decline in motorcycle registrations contributed significantly to the overall drop and that shows the struggles of the inflation-hit middle class. Only 2.62 lakh new motorcycles were registered in 2024 – the lowest since 2015 and nearly half of the peak in 2022. The rising borrowing costs also played a major role in sluggish demand for vehicles. Post August 5, the new regime in Bangladesh hiked policy rate to curb inflation which led to rise in vehicle loan interest rate to over 14 percent.