Bangladesh Two Wheeler Market – Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Scooter/Moped, Motorcycles), By Engine Capacity (0-150cc, 150-250cc & Above 250cc), By Region, By Competition, 2020-2030F

Market Overview

The Bangladesh Two Wheeler Market was valued at USD 1.4 Billion in 2024 and is expected to reach USD 2.2 Billion by 2030 with a CAGR of 3.3% during the forecast period. The Bangladesh two-wheeler market is experiencing significant momentum due to evolving consumer preferences, rising urban congestion, and the increasing need for cost-effective personal mobility. The market is dominated by motorcycles, particularly commuter bikes in the 100cc–125cc range, favored for their fuel efficiency and affordability. A younger population base with growing purchasing power is also contributing to rising sales. Domestic manufacturing is strengthening, as global and regional brands invest in local production units to meet growing demand and reduce dependency on imports. The government's emphasis on industrial growth and support for local assembly has further encouraged market expansion.

The market is being shaped by several key trends, such as the shift toward electric two-wheelers and the integration of smart features in newer models. Rising fuel prices are encouraging consumers to consider battery-powered alternatives, prompting manufacturers to expand their electric offerings. Connected vehicle technologies, such as Bluetooth-enabled displays and mobile app integration, are gaining traction among urban users. Financing options and digital sales platforms have made it easier for consumers to access two-wheelers, which is especially relevant for first-time buyers. Brand competition remains intense, with companies focusing on aggressive pricing, product variety, and enhanced after-sales service to capture market share.

The Bangladeshi government has implemented policies to encourage local manufacturing and reduce import duties on Completely Knocked Down (CKD) units. For instance, the import duty on CKD motorcycle units was reduced by 25 percentage points to 20% in 2016–17 to promote local assembly. These initiatives have led to approximately 99% of two-wheelers being locally manufactured or assembled, saving valuable foreign currencies and creating thousands of jobs.

Market Drivers

Rising Demand for Affordable Mobility:

With increasing traffic congestion in urban and semi-urban areas, two-wheelers offer an efficient and low-cost transportation alternative. Consumers, particularly from lower and middle-income segments, are drawn to motorcycles and scooters due to their affordability, low maintenance cost, and superior fuel efficiency. The two-wheeler remains a primary choice for personal transport as it meets essential commuting needs while remaining within budget. This cost-effectiveness has led to steady demand growth, especially among first-time buyers and small business owners who rely on two-wheelers for daily mobility and delivery tasks.

Youth Population and Lifestyle Shifts:

A significant portion of Bangladesh’s population is under 35, a demographic group that values convenience, independence, and mobility. This young consumer base is more likely to choose personal vehicles for comfort and time-saving, leading to growing two-wheeler ownership. Lifestyle shifts, including the rise of gig economy jobs and food delivery services, are also accelerating demand. Two-wheelers offer practical solutions for work and leisure, and many young buyers are now prioritizing compact, stylish, and tech-enabled models, driving innovation in product offerings. With approximately 35.16% of the population aged between 15 and 34 years as of 2024. This demographic is increasingly adopting motorcycles for commuting, leisure, and delivery services, reflecting a shift towards more independent and mobile lifestyles. The country's median age is 27.3 years, indicating a youthful population that is tech-savvy and open to modern transportation solutions.

Improved Access to Financing and Credit:

Financial institutions and non-banking entities have made purchasing two-wheelers more accessible by offering flexible loan options with low down payments. This allows individuals without substantial savings to afford motorcycles and scooters. The rise of digital banking and mobile loan applications has enhanced credit availability, particularly for rural and unbanked populations. These advancements have been crucial in turning potential demand into actual sales, while fostering brand loyalty through partnerships with manufacturers and dealers. For example, BRAC Bank provides loans up to BDT 500,000, with interest rates between 11.75% and 12% annually, varying by gender. Loan tenures range from 1 to 3 years, with processing fees set at 1% for male and 0.5% for female borrowers, alongside a required down payment of 10% to 20%. Similarly, Prime Bank offers loans up to BDT 500,000, covering up to 80% of the vehicle’s price, with repayment terms extending up to 36 months and competitive interest and fees.

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Key Market Challenges

Insufficient Charging and Service Infrastructure

While electric two-wheelers are gaining interest, the supporting infrastructure remains underdeveloped. A limited number of public charging stations restricts the feasibility of long-distance travel for electric bikes. The lack of widespread service centers for both electric and traditional two-wheelers creates challenges in maintenance, especially in less accessible areas. This gap reduces consumer confidence in adopting new technologies and slows down the overall market transformation.

High Component Costs and Import Dependency

Despite a push for local manufacturing, many essential components are still imported. Fluctuations in foreign currency exchange rates and international logistics costs significantly impact the final retail prices. Import duties on parts also increase production expenses, affecting competitiveness and limiting access to advanced technologies. This dependency reduces the ability of local players to scale production efficiently and respond swiftly to changes in consumer demand.

Regulatory Gaps and Policy Uncertainty

The absence of consistent policies regarding emissions, safety standards, and registration norms creates confusion in the market. Manufacturers often hesitate to invest in advanced product lines due to potential changes in regulations. Inconsistent enforcement of existing traffic and vehicle laws also impacts the growth of organized retail and resale markets. Clarity and stability in regulation are crucial for encouraging long-term investment and building consumer trust.

Key Market Trends

Adoption of Electric Two-Wheelers:

Environmental concerns and rising fuel prices are pushing both consumers and manufacturers toward electric vehicles. Although the current volume remains low, increased awareness and interest in eco-friendly alternatives are prompting brands to launch electric scooters and bikes. These models are gradually becoming more affordable, and government discussions on incentives are further generating curiosity. As battery technology improves, the adoption rate is expected to rise steadily. The electric two-wheeler segment is gaining traction, with government incentives and improving charging infrastructure supporting this shift. The Asia-Pacific region, including Bangladesh, has seen a 262% increase in the quantity of two-wheeled electric vehicles from 17,000 units in 2022 to 62,000 units in 2023.

Rise in Digitally Enabled Purchases:

E-commerce and mobile apps have transformed how consumers research, compare, and purchase two-wheelers. Online booking, virtual showrooms, and digital financing have shortened the buying cycle and improved convenience. Buyers are increasingly relying on digital tools to access deals, customer reviews, and after-sales support. This shift is compelling manufacturers and dealers to strengthen their online presence and digital customer service capabilities. As of December 2024, Bangladesh Bank reported over 39.5 million issued debit cards and approximately 2.7 million credit cards, reflecting a steady increase in cashless transactions.

Incorporation of Smart Technologies:

Consumers are demanding more from their vehicles in terms of connectivity and functionality. Features like GPS tracking, mobile integration, anti-theft systems, and ride diagnostics are being integrated into newer models. These smart enhancements cater especially to tech-savvy youth and urban riders. Smart technologies are also being used to optimize fleet management in delivery and logistics businesses, enhancing the business appeal of two-wheelers.

Segmental Insights

Engine Capacity Insights

The Bangladesh two-wheeler market is segmented by engine capacity into four primary categories: up to 125cc, 126–250cc, 250–500cc, and above 500cc. Two-wheelers with engine capacities up to 125cc are typically chosen for their practicality and efficiency. They are popular among daily commuters, delivery service riders, and budget-conscious users who prioritize fuel economy and low operating costs. These vehicles are generally lightweight, easy to maneuver in traffic, and relatively inexpensive to maintain, which makes them suitable for short-distance urban and semi-urban mobility. Two-wheelers in the 126–250cc range attract consumers seeking a balance between performance and fuel efficiency. These motorcycles and scooters are often used for longer commutes or intercity travel, offering improved power and comfort compared to lower-capacity models.

Vehicles with engine capacities between 250cc and 500cc cater to a more niche group of users who value performance, style, and long-distance travel capability. These models offer higher torque, enhanced build quality, and more sophisticated handling characteristics. They are often purchased by enthusiasts and those who view riding as more than just a means of transportation. The above 500cc segment represents the premium end of the market, attracting riders who seek advanced engineering, superior ride quality, and premium design. These high-capacity bikes are typically used for specialized purposes, including long-distance touring and performance biking. Riders in this category often invest in their vehicles for the experience and status they provide, with emphasis on features like powerful engines, advanced electronics, and high-end materials. While the buyer base for this segment is smaller in number, it reflects growing lifestyle aspirations and interest in global motorcycle trends. Each engine capacity segment reflects different motivations and usage patterns, contributing to the market’s diverse landscape.

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Regional Insights

Dhaka

Dhaka, the capital city, stands as the dominant force in the two-wheeler market. In 2023, motorcycles comprised half of Dhaka's registered vehicles, with over 1.06 million units, reflecting the city's reliance on two-wheelers for daily commuting. The rapid urbanization and severe traffic congestion in Dhaka make motorcycles an attractive option for navigating narrow and crowded streets efficiently. The city's infrastructure, characterized by a dense network of roads and highways, facilitates the widespread use of two-wheelers. Economic factors also play a crucial role; Dhaka's status as the economic center of Bangladesh, with a significant portion of the nation's GDP generated here, provides residents with higher disposable incomes, enabling them to afford motorcycles. The introduction of ride-sharing services has further increased the demand for two-wheelers, as they offer an affordable and flexible mode of transportation.

Chattogram

Chattogram, the second-largest city, holds a significant share of the two-wheeler market. As the main commercial and industrial hub of Bangladesh, Chattogram's economy is bolstered by its status as the country's busiest port, handling a substantial portion of the nation's imports and exports. This economic activity has led to increased industrial growth and urbanization, driving the demand for personal and commercial transportation. Motorcycles serve as an efficient means of transport for workers and entrepreneurs, offering flexibility and cost-effectiveness. The city's infrastructure, including a dense network of roads and proximity to industrial zones, supports the widespread use of two-wheelers. The growing middle class and increasing disposable incomes in Chattogram further contribute to the rising demand for motorcycles.

Recent Developments

• In September 2024, Bangladesh Honda Private Limited (BHL) commenced exporting motorcycles from its Gazaria, Munshiganj plant. The initial shipment included 14 Honda X-Blade 160 units sent to Guatemala. This move marked a significant step in enhancing the country's foreign exchange reserves and showcased Bangladesh's growing capabilities in motorcycle manufacturing.
• Runner Automobiles, a prominent local manufacturer, has been focusing on the electric vehicle (EV) segment. In early 2024, the company announced plans to establish a nationwide charging infrastructure to support the adoption of electric motorcycles. This initiative aligns with global trends towards sustainable transportation and positions Runner as a forward-thinking player in the Bangladeshi market.
• In 2024, Yamaha secured a 20.13% share in wholesale sales and a 19.52% share in retail sales in Bangladesh's motorcycle market. This performance underscores Yamaha's strong market presence and effective distribution strategies, contributing to its position as a leading brand in the country.
• In December 2024, Mitsui & Co., a Japanese conglomerate, acquired an 18.5% stake in ACI Motors Limited for USD 22.75 million. This investment aims to leverage Mitsui's global network to help ACI Motors expand internationally and diversify its product range to include rice processing equipment and electric and passenger vehicles.

Key Market Players

• Uttara Motors Limited
• Walton Hi-Tech Industries Limited
• Atlas Bangladesh Limited
• Runner Automobiles Limited
• TVS Auto Bangladesh Limited
• Bangladesh Honda Private Limited
• Niloy Motors Limited
• Rancon Motorbikes Limited
• Speedoz Limited
• Karnaphuli Industries Limited

Report Scope:

In this report, the Bangladesh Two Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Bangladesh Two Wheeler Market, By Vehicle Type:

o    Scooter/Moped

o    Motorcycles

·         Bangladesh Two Wheeler Market, By Engine Capacity:

o    0-150cc

o    150-250cc

o    Above 250cc

·         Bangladesh Two Wheeler Market, By Region:

o    Barisal

o    Chittagong

o    Dhaka

o    Khulna

o    Rajshahi

o    Sylhet

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Bangladesh Two Wheeler Market.

Available Customizations:

Bangladesh Two Wheeler Market report with the given market data, Tech Sci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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