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Download PDF Auto sales dropped by half thanks to the ongoing anti-corruption drive, reconditioned and new car sellers have said.
They said customers currently fear to visit showrooms and buy cars due to government queries about buyers’ sources of income launched after proclamation of the state of emergency.
“Overall sale of reconditioned vehicles dropped by more than 50 percent since last month,” Abdul Haque, president of Bangladesh Reconditioned Vehicles Importers and Dealers Association (Barvida), told The Daily Star. “Dhaka, Chittagong and Sylhet car markets presents the same spectacle.”
M Salahuddin, president of Bangladesh Automobiles Distributors Association (Bada), an association of new car importers, echoed Haque saying, “New car sales witnessed drastic fall since January.”
This correspondent visited different car showrooms in the city a few days ago and found salesmen wearing a glum look on their faces.
Describing the current market trend as ‘traumatic’ the sellers said they were expecting a boom in business as they thought all problems will be solved after declaration of the emergency.
Barvida president said the law enforcers could collect customers’ sources of income and other information from Bangladesh Road Transport Authority (BRTA) as the sellers send buyers’ purchase details to the BRTA daily.
“We are not sellers of confiscated cars,” he said adding, “The government should adopt business friendly measures so that customers can purchase autos without any fear.”
He said foreign exporters of reconditioned vehicles are also worried about drastic business fall in Bangladesh.
Barvida president said his company, Haq’a Bay Automobiles Ltd, sold 27 reconditioned cars in February from its Naya Paltan showroom whereas the number was 60 per month on an average earlier.
Another seller, Md Anwar Hossain, managing director of AH Autos Ltd, experienced a drastic fall in business. He sold seven cars in February and only one in first 21 days of the current month.
Sellers of reconditioned vehicles have been facing dull business due to imposition of high import duty during the immediate past government’s tenure.
According to Barvida estimate, the market share of reconditioned vehicles in Bangladesh is 85 percent.
Talking to The Daily Star, importers of brand new cars also expressed views similar to the reconditioned vehicles sellers.
However, they appreciated the government move against tax-free car imports by the former lawmakers.
Tayabul Bahar, director of REL Motors Ltd, said he sold 24 brand new Japanese Subaru vehicles in November last year. But the number was two in January, one in February and three in the current month so far, Bahar said.
He said, “Customers have become very cautious about buying brand new cars. I don’t know what the actual reasons are. But the flow of buyers dropped sharply after the proclamation of emergency.”
Ariful Azim, general manager (operation) of Executive Motors Ltd, BMW’s sole distributor in Bangladesh, however, said they did not experience any shortfall in sales.
April 4th, 2008 at 8:08 pm
dear sir can you give me barvida webside number