The demand for motorcycles is expected to continue growing rapidly in Bangladesh.
- Low penetration ratio of 19 per 1,000 population indicates
potential for further growth.
- Growing middle-income population: Sustained economic growth
over the last decade has enhanced consumers’ purchasing power and
affordability, leading to the rise in demand for consumer durables.
According to the Boston Consulting Group, 30 to 40 million people will join
entry-level middle-income class by 2025, while another 34 million will move
to a higher middle-income bracket, enabling them to reach a higher standard
- Rising popularity of ride sharing and ecommerce and
consequently logistics/home delivery service industry
- Motorcycle provides quicker mode of transport in the traffic
laden Dhaka city.
- Reduced corporate income tax of 5% for local
manufactures of motorcycles till June 2021 and 10% from July
- 10-year exemption of corporate income tax for
newly established industries engaged in manufacturing of
parts and components produced by light engineering industry
used in industries (effective from July 1, 2021-June 30,
2030) (SRO 166/Law/Income Tax/2021)
- Cash incentive of 10% is provided for export of
- SRO Order (SRO 155/2016/17) which defines the
progressive manufacturers and allows duty reduction on their
imported parts/ materials
- SRO (155/2017/41) which defines the local
(category-1) manufacturers and allow duty reduction or
exemption on their imported parts/ materials (also to the
- SRO (207/2018/810) which allows VAT exemption
to local manufacturers and parts suppliers on their imported
- SRO (69/2019/05) which redefines the
progressive (termed as category-2) manufacturers and duty
exemption on their imported parts
- Motorcycle development policy 2018
Government is encouraging manufacturing of motorcycles. Current assemblers are
encouraged to progressively shift to manufacturing through duty reductions on import
of raw materials.
The Government of Bangladesh is encouraging investment in parts and components
manufacturing. The linkage formation is one of the key agendas of the National
motorcycle policy 2018. In addition, there are tax incentives for manufacturing of
part and components.