Survey on Two-Wheeler Market in Bangladesh(2004)
Executive Summary
In recent year rural road communications mainly connecting roads from Thana to important Hat, Bazar and villages have been increased significantly. Consequently agriculture, agriculture related business and other economical activities have been increased and side-by-side mobilization of people also increased. As an easy and affordable transport, Two-wheeler becomes a very popular vehicle in rural and semi urban area in our country.
Objective of the study
The main objective of the study is included:
(i) An analysis of the present situation of two-wheeler market in Bangladesh,
(ii) An analysis of sales trend of two-wheeler and estimation of their future demand.
(iii) An analysis to find the proper marketing and sales tools to marketing the products.
(iv) An analysis to measure the potentiality of Bajaj products.
Market size and growth rate of Two- Wheeler:
Two-Wheeler market in Bangladesh is very optimistic and demand is increasing rapidly. At the moment market size of Two-Wheeler is about 35,000 units per year. In l2002-03 financial year growth rate was 44%. Growth rate mainly depends on socio economic environment and Government policy of our country. Average growth rate of Two- Wheeler market in last six years was
Existing brand in Bangladesh market:
At present following makes and models of Two- Wheelers are available in Bangladesh market-
| Brand/ Make | Country of Origin |
| Bajaj | India |
| Honda | Japan |
| Hero Honda | India |
| Honda Pak | Pakistan |
| Xinfu | China |
| Jialing | China |
| Yamaha | India/ Japan |
| Suzuki | India |
| Zongshen | China |
| Dayang | China |
| Qjiang | China |
Position of Uttara Motors Ltd in Two- Wheeler market:
Uttara Motors Ltd., sole distributor of Bajaj Auto has achieved highest market share in financial year 2001-02 for the first time, and it was only 19% of total market size. Achieving 19 % Share Company had to face tuff competition. About number of 12 automobile companies are involved with Tow- Wheeler marketing and they are offering attractive package of price and features to their potential customers.
The main competitors of Bajaj are Hero Honda, Yamaha, Honda Pak, Dayang etc. and their market share is very closed to Bajaj. Beside these several number of Chinese brands are available in Two- Wheeler market and are achieved a remarkable market share.
As a highest market share holder all of we have try to grip the share first position and try to increase it to 25 % of total market. We can achieve the expected market share by taking special marketing activities and offering special price, features, benefits to the potential customers.
Because of important profit earning source, we have to emphasis on Two- Wheeler marketing with full concentration. It is little bit difficult to us to achieve the expected target alone. We believe Bajaj will actively participate with us and give all possible financial and technical support from their side to successfully complete our mission
Market size of Two- Wheeler in last six years:
| Financial Year | Market Size (Units) | Market Share of UML |
| 1996-97 | 14,316 | 2528 |
| 1997-98 | 19,784 | 1168 |
| 1998-99 | 19,224 | 806 |
| 1999-00 | 22,506 | 2429 |
| 2000-01 | 22,622 | 2920 |
| 2001-02 | 32,573 | 5945 |
| 2002-03 | 43,000 | 7805 |
Growth Rate of Two- Wheeler Market in last 5 years:
| Financial Year | Growth Rate of Market | Growth Rate of UML |
| 1997-98 | 38 % | -54% |
| 1998-99 | – 3 % | -31% |
| 1999-00 | 17 % | 300% |
| 2000-01 | .5 % | 20% |
| 2001-02 | 44 % | 210% |
| 2002-03 | 32% | 31% |
Growth rate calculated based on previous year. Base year is 1996-97.
Two-Wheeler sales trend of Uttara Motors Ltd. in last four years:
| Financial Year | Unit | Amount in lac |
| 1998-99 | 806 | 813 |
| 1999-00 | 2429 | 1569 |
| 2000-01 | 2920 | 1990 |
| 2001-02 | 5945 | 3714 |
| 2002-03 | 7805 | 4922 |
| 2003-04 | 10,000 |
Two- Wheeler Marketing Company in Bangladesh:
Marketing Company | Make and Model | Market Share | % |
| Uttara Motors Ltd. | Bajaj | 7805 | 18.15% |
| Atlas Bangladesh Ltd. | Honda Pak/ Honda (In/Ja) | 12442 | 28.89% |
| H.S. Enterprise Ltd. | 3733 | 8.7%% | |
| Rupsha Trading | Zongshen | 2490 | |
| Karnaphuli | Yamaha | 1605 | |
| Bangladesh Auto Manu. Co. | Jialing/ Qjiang | 460 | |
| Emma Motors | Jialing/ Xingfu | 1025 | |
| Rian Motors | TVS/ Suzuki | 2320 | |
| Runner | Dayang/ LML | 9720 | |
| Singer Bangladesh Ltd. | Singer | 1602 | |
| Road Master | Challenger/ Kinetic Boss | 879 |
Market share of different brands of Two- Wheeler market in 2002-03
| SL No. | Brand / Make& Model | Units | Percentage |
| 1. | Bajaj | 7805 | |
| 2. | Hero Honda | 7017 | |
| 3. | Honda Pak | 2700 | |
| 4. | Honda (Japan) | 2725 | |
| 5. | Xingfu | 465 | |
| 6. | Jialing | 3435 | |
| 7. | Jincheng | 250 | |
| 8. | Jianshe | ||
| 9. | Singer | ||
| 10. | Emma | ||
| 11. | Yamaha | ||
| 12. | Yamaha (Japan) | ||
| 13. | LML | ||
| 14. | Qjiang | ||
| 15. | S. Suzuki | ||
| 16. | Suzuki | ||
| 17. | Zongshen | ||
| 18. | Quinky | ||
| 19. | Dayang | ||
| 20. | Nitol |
Market share of different brands of Two- Wheeler market in 2001-02:
| SL No. | Brand / Make& Model | Units | Percentage |
| 1. | Bajaj | 6127 | 19 |
| 2. | Hero Honda | 4987 | 15.3 |
| 3. | Honda Pak | 2900 | 8.9 |
| 4. | Honda (Japan) | 1550 | 4.76 |
| 5. | Xingfu | 405 | 1.23 |
| 6. | Jialing | 1575 | 4.83 |
| 7. | Jincheng | 245 | .75 |
| 8. | Jianshe | 450 | 1.38 |
| 9. | Singer | 744 | 2.28 |
| 10. | Emma | 285 | .87 |
| 11. | Yamaha | 3835 | 11.77 |
| 12. | Yamaha (Japan) | 1200 | 3.68 |
| 13. | LML | 300 | .92 |
| 14. | Qjiang | 510 | 1.56 |
| 15. | S. Suzuki | 900 | 2.76 |
| 16. | Suzuki | 150 | .46 |
| 17. | Zongshen | 1750 | 5.37 |
| 18. | Quinky | 280 | .86 |
| 19. | Dayang | 4140 | 12.71 |
| 20. | Nitol | 240 | .72 |
Market share of different brands in Two- Wheeler market in 2000-2001:
| SL No. | Brand / Make& Model | Units | Percentage |
| 1. | Baja | 2920 | 13 |
| 2. | Hero Honda | 2176 | 9.61 |
| 3. | Honda Pak | 2000 | 9 |
| 4. | Honda (Japan) | 1100 | 4.86 |
| 5. | Xingfu | 1625 | 7.17 |
| 6. | Jialing | 3049 | 13.46 |
| 7. | Jincheng | 1000 | 4.41 |
| 8. | Jianshe | 445 | 1.96 |
| 9. | Emma | 20 | .09 |
| 10. | Yamaha | 3241 | 14.31 |
| 11. | Yamaha (Japan) | 1000 | 4.41 |
| 12. | LML | 150 | .66 |
| 13. | S. Suzuki | 600 | 2.65 |
| 14. | Suzuki (Japan) | 430 | 1.90 |
| 15. | Zongshen | 1200 | 5.3 |
| 16. | Dayang | 1521 | 6.71 |
| 17. | Others | 175 | .77 |
Market share of different brands in Two- Wheeler market in 1999-2000:
| SL No. | Brand/ Make& Model | Units | Percentage |
| 1. | Baja | 2305 | 11 |
| 2. | Zongshen | 1340 | 6.4 |
| 3. | Jianshe | 300 | 1.42 |
| 4. | Xingfu | 899 | 4.28 |
| 5. | Honda Pak | 3212 | 15.29 |
| 6. | Jialing | 2260 | 10.75 |
| 7. | Jincheng | 600 | 2.85 |
| 8. | Yamaha | 4700 | 22.37 |
| 9. | Hero Honda | 2084 | 10 |
| 10. | Samurai Suzuki | 490 | 2.33 |
| 11. | Yamaha (Japan) | 1150 | 5.47 |
| 12. | LML | 450 | 2.14 |
| 13. | Dayang | 1220 | 5.8 |
Market share of different brands in Two- Wheeler market in 1998-1999:
| SL No. | Brand/ Make& Model | Units | Percentage |
| 1. | Bajaj | 806 | 4.77 |
| 2. | Zongshen | 840 | 4.97 |
| 3. | Jianshe | 150 | .89 |
| 4. | Xingfu | 1320 | 7.81 |
| 5. | Honda Pak | 3800 | 22.49 |
| 6. | Jialing | 1124 | 6.65 |
| 7. | Jincheng | 1300 | 7.69 |
| 8. | Yamaha | 2700 | 16 |
| 9. | Hero Honda | 2032 | 12.03 |
| 10. | Samurai Suzuki | 360 | 2.13 |
| 11. | Yamaha (Japan) | 900 | 6.57 |
| 12. | Dayang | 1110 | 5.33 |
| 13. | LML | 450 | 2.66 |
Sales trend of main competitors in Two Wheeler market in Bangladesh:
| Brand | 98-99 | % | 99-00 | % | 00-01 | % | 01-02 | % | 02-03 | % |
| Bajaj | 806 | 5 | 2305 | 11 | 2920 | 13 | 6127 | 19 | ||
| Hero Honda | 2032 | 12 | 2084 | 10 | 2176 | 9.6 | 4987 | 15 | ||
| Honda Pak | 3800 | 22 | 3212 | 15 | 2000 | 9 | 2900 | 9 | ||
| Jialing | 1124 | 6.6 | 2260 | 11 | 3049 | 13 | 1575 | 5 | ||
| Yamaha | 2700 | 16 | 4700 | 22 | 3241 | 14 | 3835 | 12 | ||
| Zongshen | 840 | 5 | 1340 | 6.4 | 1200 | 5.3 | 1750 | 5.4 | ||
| Dayang | 1110 | 6.5 | 1220 | 6 | 1521 | 6.7 | 4140 | 13 | ||
| Honda (Japan) | – | – | – | – | 1100 | 5 | 1550 | 5 | ||
| Yamaha (Japan) | 900 | 5.3 | 1150 | 5.5 | 1000 | 4.4 | 1200 | 3.7 | ||
| S. Suzuki | 360 | 2 | 490 | 2.3 | 600 | 2.6 | 900 | 2.8 |
Present price of different brands & models of Two- Wheeler:
| Marketer | Brand | Model | CC | Price |
| Uttara Motors Limited | Bajaj | Croma | 112 | 77,500 |
| ‘’ | ‘’ | Caliber | 112 | 73,500 |
| ‘’ | ‘’ | Champion | 100 | 71,500 |
| ‘’ | ‘’ | Aspire | 112 | 69,500 |
| ‘’ | ‘’ | Boxer CT | 100 | 61,500 |
| ‘’ | ‘’ | Boxer AT | 100 | 57,500 |
| ‘’ | ‘’ | KB-125 | 125 | 60,000 |
| ‘’ | ‘’ | M-80 | 80 | 41,500 |
| ‘’ | ‘’ | Legend | 150 | 69,500 |
| ‘’ | ‘’ | Classic SL (ES) | 150 | 64,500 |
| ‘’ | ‘’ | Classic SL | 150 | 60,500 |
| ‘’ | ‘’ | Chetak | 150 | 54,500 |
| ‘’ | ‘’ | Super | 125 | 42,500 |
| Atlas Bangladesh Ltd. | Honda | Passion | 100 | 76,500 |
| ‘’ | ‘’ | Hero 100ss | 100 | 70,000 |
| ‘’ | ‘’ | Hero Sple. | 100 | 74,000 |
| ‘’ | ‘’ | CG 125 | 125 | 1,32,000 |
| ‘’ | ‘’ | Honda XL | 185 | 1,56,000 |
| ‘’ | ‘’ | CD 80P | 80 | 1,05,000 |
| ‘’ | ‘’ | C-50 SWR | 50 | 80,000 |
| H.S. Enterprise | Jialing | JH 100 | 100 | 64,000 |
| ‘’ | ‘’ | JH125L | 125 | 70,000 |
| ‘’ | ‘’ | JH 80 | 80 | 48,000 |
| ‘’ | Jincheng | AX 100 | 100 | 64,000 |
| ‘’ | Xinfu | XF125 A2 | 125 | 73,000 |
| Marketer | Brand | Model | CC | Price |
| Karnaphuli | Yamaha | RX100 | 100 | 75,000 |
| ‘’ | ‘’ | RX S 115 | 115 | 1,37,000 |
| ‘’ | ‘’ | YB 100 | 100 | 1,05,000 |
| ‘’ | ‘’ | YBX 125 | 125 | 82,000 |
| Emma Motors | Jialing | HS 100 | 100 | 57,500 |
| ‘’ | ‘’ | HS 125 | 125 | 70,000 |
| ‘’ | ‘’ | HS 80 | 80 | 53,000 |
| B/Desh Auto Manu. | Qjiang | QJ 100 4S | 100 | 62,000 |
| ‘’ | ‘’ | JQ 100 2S | 100 | 64,000 |
| ‘’ | ‘’ | QJ 125 A | 125 | 70,000 |
| ‘’ | ‘’ | QJ 100 U | 100 | 85,000 |
| Rupsha Trading | Zongshen | ED 80 | 80 | 53,000 |
| ‘’ | ‘’ | EG 125 | 125 | 70,000 |
| ‘’ | ‘’ | 2S 50 | 50 | 43,500 |
| Runner | Dayang | DY 125-7 | 125 | 70,000 |
| ‘’ | ‘’ | DY 100-18 | 00 | 65,000 |
| ‘’ | ‘’ | AD 80 | 80 | 53.000 |
| ‘’ | 50 | 43,000 | ||
| Rian Motors | Suzuki | Samurai | 100 | 76,900 |
Market potentiality of Bajaj motorcycle in Bangladesh market:
Market | Estimated Market Size (Per Month) | Average Sales of Bajaj(Per Month) | Sales Potentiality(Per Month) |
| Dhaka | 500 | 100 | 100 |
| Chittagong | 200 | 16 | 40 |
| Rajshahi | 400 | 83 | 85 |
| Khulna | 250 | 60 | 70 |
| Sylhet | 200 | 12 | 40 |
| Bogra | 250 | 65 | 70 |
| Jessore | 400 | 90 | 90 |
| Rangpur | 200 | 35 | 40 |
| Dinajpur | 225 | 35 | 40 |
| Others | 100 | 15 | 35 |
Recommendations:
UML has achieved a significant market share in last half of the decade. Because of continuous positive growth in last three years sales target has been fixed 7,424 units for current financial year.
Though 7,424 units is a reasonable target for current financial year, we have to follow up our sales performance very closely, because rural and sub urban customers play vital role in Two- Wheeler market. As we know, agriculture and agriculture-based job are the main occupation of the rural and sub urban people employing above 60% of labor force of Bangladesh. So, Sales of Two- Wheeler might be declined in current financial year due to recent flood if we don’t take any preventive measures.
Develop confidence and innovative thinking:
Regardless of economic circumstances in Bangladesh we have to meet tomorrow’s challenges by maintaining confidence in our abilities and by developing the power of positive thinking.
Develop workforces:
We have to develop our sales work force by providing more opportunities for promotion, special assignment and in house training. The effectiveness of sales-force management is an important determinate of a company’s success because the sales force is directly responsible for generating an organization’s sales revenue.
Product Knowledge:
It is needless to mention, product knowledge is the main attribute to be a good sales executive. Without proper knowledge a sales executive doesn’t convince the customers to buy a product. In few cases our sales executives don’t have adequate knowledge to satisfy the customers through providing proper information regarding the products. To meet the tomorrow’s challenges we must have to develop knowledge of our sales team.
Promotional activities: We have to take sales promotion activities, which employed to achieve company’s objectives. We may use sales promotion to achieve the following objectives
To induce new customers.
To introduce a new model of products.
To bring more customers in to retail stores/ showrooms.
To stabilize a fluctuating sales pattern.
To increase dealers inventories.
To offset competitor’s marketing efforts.
Sales promotion program can be taken in two ways:
Consumer sales promotion: This method encourage consumer to buy a specific product.
Trade sales promotion: It is stimulate dealers to handle a company’s products and to market this product aggressively.
Develop strength of weak branches:
Sylhet and Chittagong have achieved very poor market share, which are 12 and 16 units per month respectively. Market size is 200 units per month in above-mentioned two cities. That’s why we have to emphasis to enhance the market share. We hope, market share can be developed up to 40 units per month in mentioned cities by giving extra efforts.
After sale service:
After sale service plays an important role to develop brand loyalty. For long-term business we must develop brand loyalty. Customer satisfaction is the prime factor to build brand loyalty. That’s why we have to develop a several number of service center with modern equipment and sufficient parts all over the country, mainly Rajshahi, Bogra, Jessore including important cities/ towns to provide satisfactory after sale service to our valuable customers.
Appoint the new dealers:
We have to increase the number of dealers for two wheelers. In the mean time circular for “Two-Wheeler dealer appointment” has been published in “The Daily Ittefaq”. We expect, we can be completed the dealer appointment procedure within very short time. We positively hopeful, new dealers will play important role to maximize the company’s turnover by enhancing the sales volume.
—————–