Auto parts market swells on rising demand
- Market size was Tk 1,300cr-Tk 1,400cr last year
- Annual growth rate 10-12pc
- Market size was below Tk 500cr 10 years ago
- At least 200 traders import auto parts
- Of the spare parts, 80pc are for Toyota cars
The automotive component market in Bangladesh has more than doubled in a space of a decade driven by rising car users, said industry people.
Importers bring in engine, alternator, radiator, air conditioner, suspension, brake pads, spoiler, rim, tyre, trim package, body components, among other spare parts needed to serve the booming automotive market.
The market size of automotive components was about Tk 1,300 crore to Tk 1,400 crore last year with an annual growth rate of 10 to 12 percent in the last one decade, said Mosharraf Hossain Manik, one of the major importers.
The market size was not more than Tk 500 crore 10 years ago, he said.
“The market is not big compared to other sectors, but it is growing rapidly.”
Manik, also the owner of Junaid Enterprise, said the market for automotive spare parts is unorganised, so any exact data about the industry is not readily available. Most of the importers fetch reconditioned and new automobile parts from Thailand, China, Indonesia, Taiwan, Dubai and India, with Thailand and Indonesia being the major sources, he said.
At least 200 traders import auto spare parts and most of them have workshops, said Farhad Hossain, another importer. More than 2,500 traders are involved in the component business. Hossain, the owner of The Implementers, said although the sector is growing, no trader has the capacity to set up plants to make spare parts.
However, he said, the light engineering sector manufactures some auto parts but the quantity is very low.
Mushfiqur Rahman, manager of Auto Zone Bangladesh, said spare parts of all kinds of motor cars are available in the market. Among the spare parts, 80 percent are for Toyota cars and the rest for other brands.
Rahman said customers think that only the spare parts of Toyota cars are available in Bangladesh, but the scenario has changed in the last one decade as people use different brands of cars.
The spare parts of many other brands are available in Bangladesh, he added.
Farzana Khan, deputy director for sales at Hyundai Motors Bangladesh Ltd, said the company plans to set up an auto spare parts and automobile manufacturing plant at its existing assembly plant in Kalurghat, Chattogram.
“We have applied for permission to establish the manufacturing plant to make auto spare parts and cars.”
