Car market slump: Buyers drop for BMW, Mercedes, Prado

The Dhaka Times Desk Buyers have decreased in all types of car market, including luxury ones. The sale of famous cars like BMW, Mercedes Benz, Prado is not half as compared to last year this year. There are no buyers of old cars in the market. Poor economic conditions are to blame - so do businessmen.

Other times, due to the political situation of the country, there was a slowdown in buying and selling, but this time it is exactly the opposite. There is no general strike this time, the situation in the country is fairly normal, yet several businessmen related to the car market have said that due to the increase in customs duties in the budget, the increase in the price of the dollar, the decrease in the value of the rupee, the discouragement of Bangladesh Bank in lending and the increase in the interest rate on loans. This is a sad situation in the market. High and middle class car buying dreams have been dashed due to increase in car duty and reduction in bank loans. Dealers are frustrated with not selling half as many cars as last year.

Research shows that German-made BMW has sold 50 cars till November. Importers are struggling to sell an average of 5 BMW brand cars every month since 2012. 130 cars were sold last year. It sold 11 cars per month. BMW 5 series model cars are very well liked by buyers in Bangladesh. The price is like 1 crore 55 lakh rupees. This series consists of 520D and 520I models. Asif Sultan, Marketing Manager of Executive Motors said. Their showrooms have cars priced at a minimum of Tk 95 lakh to Tk 170 lakh. There are new models of 3 series (320i and 328i) cars. That run on octane. 7 series cars (730L and 730I) models. They do not work in Bangladesh. The price will be 4 crore rupees.

He commented that the collapse in car sales was due to the tax hike in the budget, dollar prices and discouragement of bank loans. 2000 cc car duty is 290 percent. Bangladesh Bank is strict in getting bank loans to buy cars above the price of Tk 13 million. Mercedes Benz has sold 6 cars so far. An average of one car of this brand is being sold every two months this year. The brand sold 25 cars last year. An average of 2 per month, said Sakib, deputy marketing manager of Rencon Motors, the local representative of the Mercedes Benz importer.

He also said that their company is selling cars worth 8 million to 12 million taka in Bangladesh. Lutful Karim, assistant marketing manager of Prado car importer local agent Navana Limited, said that last year they sold 31 cars. On an average, more than two cars were sold per month. Only 9 cars have been sold so far. Which in an average month does not fall even one. There are no buyers. People who thought of buying a low cc reconditioned car are no longer able to. Reconditioned cars were sold at 40 last year from 100 last year. Saifuddin Bhuiyan, the manager of Auto Museum, a large showroom of reconditioned cars in Nayapaltan of the capital, said. Now struggling to sell 4 cars a month. Their three showrooms have vehicles priced at a minimum of 15 lakhs and a maximum of 28 lakhs. Japanese Toyota sells more.

Earlier, the interest rate of bank loan for car purchase was 12 percent. The bank used to give 80 percent financial support to the buyer. But that interest rate is now 19 percent and support is only 20 percent. According to sources, previously those who are buying a car on the condition of payment in 60 to 70 installments for a period of 5 years had to pay 10 to 17 percent profit to the bank. This is how most cars are sold and bought. Meanwhile, 100 luxury cars have created a lot of excitement in Chittagong port. They have been lying in Chittagong port for more than one year. All of them are worth more than crores of rupees. Which was brought from outside the country in duty free facility. Caught trying to sell later. And which has been caught while importing by making false declarations. Currently, most of the owners are not looking for these cars. Many of the original owners are not coming to redeem them for fear of ACC. Some have been caught trying to extort them with fake documents. A businessman named Rafiq from old Dhaka came to Nayapaltan showroom to buy a car. He is interested in buying a reconditioned Toyota car. But he stopped after hearing the price. He said, he will refrain from buying a car if it does not fall within his own budget.

On the other hand, a broker named Rony from a showroom in Nayapaltan said that he has been associated with this car business for about 12-13 years. He said that he had never seen such a slowdown in the car business before. Now the market is so bad that he is in big trouble for his professional association with cars. He said that since the situation in the country is fairly good now, the market situation is still so bad. If a situation like hartal-strike arises in the future, then he is very worried about the situation in business.