Market Trends of Bangladesh Used Car Industry
Hatchback and Sedan Cars are dominating the Market
Owing to the affordability of hatchbacks, the sales of this segment in the used car market were least disrupted during the pandemic. Hatchbacks are popular for a variety of reasons, including lower taxation than sedans while providing the same performance and comfort. Since so few new models qualify for these tax breaks, the price of used hatchbacks remains unaffected.
According to the source, the volume of passenger cars in the country will almost double by 2025, which in turn is likely to witness significant demand for hatchback and sedan cars during the forecast period.
Major international automakers, including Toyota, Nissan, Ford, Maruti, and Renault, have already penetrated the compact car models to tap the segment's long-term potential in the country. This has also elevated pre-owned vehicle demand for the same.
Sedans offer improved comfort features such as rear AC vents and rear armrests as a result of the additional interior space. In addition to providing additional legroom, the seats also give better support, making your passengers more comfortable. A majority of these features are now standard across all sedans and certain hatchbacks in the country.
The segment is popular with local people, visitors for pilgrimage, and office goers as it offers economic benefits to the people and saves other costs like maintenance costs and others. With the development of the latest projects in the country by the government, there are several innovative ideas launched by both public and private players to enhance growth in the market and provide a major boost in the coming years.
Strengthening of Online Platforms is Driving the Market
With the growing trend in technology, used car vehicle purchase through online sales has become the most preferred choice for customers over the past few years. Moreover, it provides additional facilities to monitor all the required documents, performance, and service records of the vehicle. This has proven beneficial for consumers who can directly compare from a wide variety of choices and apply their desired filter to get the most relevant used car matching their choices.
Many new, used car companies are entering the market, and it will continue in the coming years. Companies are competing with the existing players by providing customized services, new fleets, and low-pricing strategies.
Companies will continue to focus on keeping themselves ahead based on value-added services provided to prospective clients, reducing the service cost and introducing premium and well-maintained vehicle models and features into their fleet to capture a significant share of the market.
With the rise in the penetration of smartphones and the internet in emerging economies, the used car market is getting more organized. Used car retailers are using digitalization to make market offerings attractive. Also, facilities like an enormous number of photos and videos on the online platform and secure online instant finance services attract customers to buy used cars.
The primary reason behind this is that consumers prefer safety, transparency, convenience, and negligible risk while purchasing used cars, which, in turn, gives the organized sector an upper edge compared to the unorganized sector.
A growing number of internet users in the country is likely to increase the use of online sales channels, which in turn is anticipated to boost the market in the coming years. For instance, In 2022, the country witnessed 53.77 million Internet users.
