Car sale hit 13 year low amid economic strain

Bangladesh's automobile industry is facing one of its toughest periods in recent history, with vehicle sales dropping to their lowest level in 13 years.

Industry leaders attribute the sharp decline to a combination of economic stress, political uncertainty, high interest rates, and rising vehicle prices.

According to Bangladesh Bank data, consumer loan rates have surged to 12–15% in 2025, compared to 8–9% in 2022, making car financing significantly more expensive. At the same time, the depreciation of the taka against the US dollar has driven up import costs, causing vehicle prices to rise by as much as 30–40% over the past two years.

Industry insiders say an entry-level vehicle that previously sold for around Tk 16 lakh now costs nearly Tk 24 lakh, placing car ownership beyond the reach of many middle-income consumers. Higher import duties, tight liquidity in the banking sector, and weakened consumer confidence have further slowed demand.

The reconditioned vehicle market has also been affected by supply shortages from Japan, Bangladesh’s primary source of imported used cars. Production disruptions during the Covid-19 pandemic have reduced the availability of vehicles that meet Bangladesh’s import age requirements, pushing prices even higher.

Business leaders say that political instability, supply chain disruptions, and uncertainty surrounding the economy have encouraged consumers to postpone major purchases, contributing to the prolonged slowdown across the automotive sector.