Bangladesh’s automotive scenario is evolving at a rapid pace. There is a fast growth of the SUV segment relative to sedans, with SUVs segment growing at CAGR 31.28 percent from 2014 to 2018 and sedans growing at CAGR 5.6 percent during the same period.
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Consumer behaviour of suv at bangladesh
1. Bangladesh Consumer Profile
Consumer Mindset
1. Preference of SUV over Sedan:
Bangladesh’s automotive scenario is evolving at a rapid pace. There is a fast growth of the SUV
segment relative to sedans, with SUVs segment growing at CAGR 31.281
percent from 2014 to
2018 and sedans growing at CAGR 5.6 percent during the same period.
Local consumers tend to prefer SUV over Sedan for various reasons, such as;
Ground clearance: Considering Bangladesh’s road condition, Vehicle height or ground
clearance is an important feature while making a buying decision. It allows to easily spot
1
https://brta.portal.gov.bd/site/page/74b2a5c3-60cb-4d3c-a699-
e2988fed84b2/%E0%A6%B8%E0%A6%BE%E0%A6%B0%E0%A6%BE-
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87-%E0%A6%AE%E0%A7%8B%E0%A6%9F%E0%A6%B0%E0%A6%AF%E0%A6%BE%E0%A6%A8-
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Preference of SUV over Sedan and
Hatchback
Positive association with Japanese and
European brands
Less preference for non-Japanese & non-
European brands
Automatic Transmission Preferred
Available and Affordable Spare Parts and
Service
2. any potholes or cracks on the road and avoid them just in time. This also helps ensure
that the car stays in good condition for as long as possible.
More Space: As SUV’s have more space than sedans, Bangladeshi consumers always
preferred a big car while making a purchase decision. As price point becomes a constraint
while purchasing an SUV, if they can get a good SUV deal in an affordable price point,
consumers will surely reconsider their buying decision from reconditioned cars.
Reliability off-road: Again considering the road condition of Bangladesh, People
travelling to distant locations and also inside the city need off-road viability. With a
population of over 170 million people, the country only has 20,948 kms of road surface
area suitable for vehicular transportation.
2. Preference of Japanese and European brands: Consumers are predisposed to
Japanese and European due to historical establishment of these brands in the market.
Toyota boasts a lion share of vehicles on the roads whilst upper middle class and above
type consumers are recently showing an inclination towards high end European brands.
3. Less Preference of non-Japanese and non-European brands: Conversely, other
brands have developed a reputation of being cheap and unreliable due to previous market
players releasing faulty products in the market. However, Bangladesh has had great
success with Indian motorcycles and Chinese commercial vehicles. Haval, in particular,
has experienced good return and growing market share due to changing perceptions in
recent times.
4. Automatic Transmission Preferred: The general consumer prefers automatic
transmission due to the ease and comfort of driving. They are also hesitant in learning to
operate manual transmission and find it tedious particularly due to traffic congestion.
Bangladesh is strong potential market as the population income is rising at a fast pace along
with the country’s high GDP growth rate along with the dense population in the main cities with
a strong sense of entrepreneurship and resilience in the country.
3. Consumer Demographics
• In a study conducted by the Bangladesh Bureau of Statistics in 2011, around 80 percent
of the men, aged 20-49, are married; approximately 45.5 million men. We can equate that
to potentially 45 million households2
in Bangladesh of varying incomes.
• Additionally, 7 percent of the population in 2015 were middle and affluent consumers
(MAC)3
; equalling approximately 12 million. MAC includes Bangladeshis whose monthly
household income is USD 401 on average. The growth rate of MAC is around 11 percent
every year; estimating the MAC population to be 16.5 million in 2018 and 20.4 million
people in 2020.
2
http://dspace.bracu.ac.bd:8080/xmlui/bitstream/handle/10361/5082/The%20Financial%20Express%2016th%20J
an.pdf?sequence=1
3
https://www.bcg.com/publications/2015/bangladesh-the-surging-consumer-market-nobody-saw-coming.aspx