Import of 17,500 cars amid the dollar crisis

In Bangladesh, starting from the next fiscal year, people who own more than one car may have to pay an extra charge as a means of protecting the environment. The government aims to discourage excessive vehicle usage in order to combat carbon emissions and air pollution. The proposed surcharge will be based on the engine capacity of the cars and will apply to passenger cars, jeeps, and microbuses. The finance ministry is considering implementing a carbon tax, similar to other countries, as a means of discouraging the growing use of personal vehicles and reducing pollution.

Bangladesh Bank imposed restrictions on the import of luxury goods on July 4, 2022, in an effort to prevent the decline of foreign exchange reserves. The restrictions required importers to pay a 100% cash margin on all luxury goods, including cars, electrical and electronics home appliances, and gold ornaments. However, the restrictions did not have a significant impact on the import of cars. In the 11 months after the restrictions were imposed, 17,509 cars were imported, an average of 1,591 cars per month. This is only slightly lower than the 23,000 cars that were imported in the previous financial year.

Government officials and foreign delegates emphasized the need for local manufacturers to produce certified motorcycle helmets in order to increase accessibility and affordability, ensuring road safety. The World Bank, in collaboration with the Bangladesh government and BRAC, organized an advocacy event to promote the use of standard helmets during the UN Road Safety Week. Currently, all certified helmets are imported, and local manufacturers lack certification from the Bangladesh Standards and Testing Institution (BSTI).

The demand for cars has witnessed a significant transformation in the past decade, with consumers now preferring sports utility vehicles (SUVs) over sedans, according to car importers and traders in Bangladesh. Factors such as increased purchasing power, enhanced travel comfort, a feeling of safety on highways, and improved road conditions have contributed to this shift in consumer preference. Professionals, politicians, businesspeople, and top executives who frequently travel outside Dhaka are increasingly opting for crossover, hybrid, basic, and compact SUV models. The market share of SUVs has grown significantly, capturing around 40% of annual sales compared to a mere 10% several years ago.

Tata Motors together with its authorized distributor Nitol Motors Ltd, launched the Tata LPO 1616 Bus Chassis in Bangladesh. The vehicle is designed for intercity and route applications and offers superior performance, excellent passenger comfort, and the best total cost of ownership (TCO) in its class. With a focus on performance and drivability, the Tata LPO 1616 has high fuel efficiency, provides a comfortable ride for both passengers and drivers, and increases fleet owner’s profit potential.

Runner Automobiles PLC has announced plans to issue a bond worth Tk 265 crore, aimed at expanding its customer base and constructing a rooftop solar plant for its three-wheeler manufacturing facility. The company revealed that its board has approved the proposal for raising funds through the issuance of the "Runner Auto Internationally Certified Sustainability Bond". The indicative issue size of the bond is $25 million or Tk 265 crore and it will be an unsecured, redeemable, non-convertible, guaranteed and sustainability bond.