Sri Lanka, Bangladesh, Nepal and Bhutan Automotive Market 2021 Upcoming Trends, Industry Size, Market Growth, Demand and Forecast Research Report to 2027: Ken Research

How is South Asian Automotive Market Positioned?

Asian countries vary greatly in terms of automobile manufacturing and market demand. It includes Bangladesh which is the third largest automotive market in Asia.

The countries that we have considered in this research are Nepal, Bhutan, Bangladesh and Sri Lanka. Except Bangladesh, all the countries are heavily reliant on the import of automotive vehicles. Most popular means of transport is two wheeler in these countries since it is easy to transport and will be more affordable than four wheelers, except Sri Lanka. Out of the Heavy weight vehicles, ambulance are most popular, followed by Buses and Trucks. Pre-COVID, Bangladesh saw the Automotive Industry growing as a result of its government schemes.

Market: The automotive Industry has seen significant growth in the last few years, recording a CAGR of ~% during 2016-2020 primarily due to strong economic growth, increased consumer spending, increased consumer and business confidence in the economy and affirmative government policies.

Apart from these factors, other indirect factors have played a major role as well, like condition of public transport, geography and terrains of the countries, accessibility to micro-chip manufacturing centres and trade agreements that have facilitated strong growth and increased sales in units.

Nepal Automotive Market

By Type of Vehicle: 70% of the vehicle consists of two wheelers in the country as they are more affordable and easy to replace along with they fit fairly well with geography and terrain of Nepal. With pandemic, there was a massive increase in sales for 2 wheelers as people were hesitant to travel in any mode of public transport.
While two-wheelers recorded encouraging sales when the lockdown was lifted, the same wasn’t the case for four-wheelers. Unlike two-wheelers, buying a four-wheeler—the least expensive of which cost two million rupees—in Nepal is a high-value investment.

By Region (Zone): Bagmati and Lumbini are the leading regions in Nepal representing lion’s share of sales in Automotive Industry. In 2019, the country was hit with a nationwide lockdown due to COVID and this was implemented in the peak sales season..

Bhutan Automotive Market

Bhutan has witnessed a massive increase in the sales of cars in the past 5 years. Estimates say that now there is one car for every 7 people in Bhutan. However, Bhutan has always been well known for its efforts to attain complete sustainable development. Keeping these goals in mind, the country is pushing towards EVs or electric vehicles. It aims to become a hub for electric vehicles. To discourage the use of vehicles (pre-COVID) in order to keep in track with the happiness index (which the Bhutanese prioritise), the government also increased taxes on vehicles. However, car buyers were not discouraged from obtaining loads and hence financing this purchase was easy.

Power tillers are a highly growing segment in Bhutan with a CAGR of 14% for 2020-2025. It is the sign of the growing agriculture in the country. Another leading segment is the light weight vehicles.

Sri Lanka Automotive Market

Sri Lanka is an import based country when it comes to automotive. The decline in the automotive sales started when there was a terrorist attack on the country which was followed by a ban on imports to save the much needed foreign exchange. To make matters worse, the government revised and increased the excise duty for automotive vehicles in Sri Lanka which slowed down the imports. The ban took a toll on the entire market as this ban was imposed at a time where public transport was not convenient and there was a demand for two wheelers.

Companies have been selling vehicles from their inventory but they do not have any inventory to sell after 2020. Many small dealerships have shut shop during this period as they did not have enough inventory to stay in business and this has also led to massive unemployment.

By OEM : We have divided this segmentation into two sections, one for motor cars and the other for motorcycles. The most popular OEMs in two wheeler segment are Indian companies whereas in the four wheeler segment it is the Japanese that take the largest share.

Bangladesh automotive Market

With a population of 167 million people and an annual GDP growth averaging over 7% in the last five years, and high remittance from expatriates, Bangladesh represents one of the World’s Top 5 emerging economy for the next decade. Despite doubled in the last five years, the per capita income is still among the lowest in the World (US$1.829 in the 2019), but it is projected to double within the next five years. Pre-COVID, Bangladesh saw the Automotive Industry grow as a result of its government schemes. There was a decrease in automotive taxes which led to an increase in mobility and sales. Similar to other countries, sales were down during the year 2019-2020, owing to COVID. However, post the lifting of lockdown, Bangladesh saw a rise in the demand for 2 wheelers as public transport was not convenient for everyone and the most affordable option in the market was a 2 wheeler. The government has been very supportive of the industry and has schemes in place to promote the industry in a post-COVID world.

Request For Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NDc2NDk5

Nepal Bhutan Sri Lanka and Bangladesh Automotive Market Future Outlook and Projections

Nepal Bhutan Sri Lanka and Bangladesh Automotive Market is expected to increase at a CAGR of double digit during 2021 to 2026 basis volume. After the pandemic there will be a push and rebound growth in the manufacturing sector of the country and consumer demand rebound in the countries, pushing the growth. There will be a boast in various low share segments like Taxi and Power Tillers due to rebound of the commercial activities in country. Government Policies and taxation policies provide a foundational support for the growth of this industry.

Key Factors Considered in the Report