Hello everyone
Today ivam goingvto talk about market condition of cars
The price of reconditioned cars is increasing in the country, while the price of new cars is decreasing. The difference in price between the two is less than at any time in the past. Sales of brand new cars, SUVs and microbuses now account for 20 percent of the country's total market share, up from just 10 percent a decade ago. The traders are hoping that the sales of new cars will increase to 50 per cent of the total market in the next five years.
Reconditioned cars controlled a large part of the automobile market in Bangladesh. But overcoming that trend, sales of brand new cars are now increasing in the country. If this trend continues, new car sales in the country's market will be able to control the lion's share of the total market.
Industry insiders say sales of new cars in the automobile market have risen from 10 per cent to 20 per cent in the past decade. A growing number of buyers who used to buy reconditioned cars at affordable prices are now turning to buying new cars as their first choice.
The number of reconditioned car sales in the country has declined over the last three years, in contrast to the steady growth achieved by selling new cars. During this time, new car sales are up 56 percent. This number has come up in the aggregate data provided by the car dealers in the country's market.
According to the data, 19 out of every 100 vehicles sold in the country are new. In 2016, the market representation of such vehicles was only 12 percent.
Behind all this, the revised import policy has had an effect. Under the new policy, the price gap between brand new cars and reconditioned cars imported from Japan has been reduced.
Vendors feel that the market for brand new cars is growing as the difference with reconditioning is reduced and the price of new cars is within the reach of many. Considering the price gap is small, consumers think that buying a new car is the right decision rather than an old reconditioned car.
The reason for the change in market trends
Importing and selling new cars is also a lot of hassle for the sellers. After buying reconditioned cars from Japan at auction, many consumers face various mechanical faults.
This is not a problem when buying a new car, but also a variety of after-sales servicing services. The sellers said that even if they spend a little more money, consumers are now more interested in getting a guarantee of a sustainable car.
Navana Limited, the only importer of brand new Toyota cars in the country's market, said senior deputy manager. Lutful Karim said middle-class employees no longer even try to buy old, used smartphones or computers as their financial capacity has increased and prices have become affordable. This is the case in the car market.
Also, due to the impact of the annual budget policy, consumers have reduced the purchase of reconditioned cars much more than before. For two years in a row, the government has reduced the allowable depreciation figure on the import price of reconditioned cars from Japan. It discourages importers as well as raises car prices.
Earlier, a discount of 45 per cent of the total import price was given as depreciation cost, which has now been reduced to 35 per cent. The price of reconditioned cars has gone up after the last two budgets as tariffs were paid at the same rate on the basis of increased import value.
As well as reconditioned car importers' organization Barvida has been complaining that many new car importers are now bringing cars into the country at a lower import price than the actual price.