Diffusion and Success Factors of the Light Vehicle Market in Bangladesh

Mostofa Mahmud Hasan, BM Sajjad Hossain

Abstract:

Over the last two decades, Bangladesh has had tremendous achievement in the socioeconomic and development sectors. In the year 2020, Bangladesh became one of the lower middle-income countries in the world. With economic development, sociocultural conditions have also changed. Globalization and industrialization, motorization, urbanization all impacted to change the livelihood patterns of the people in Bangladesh. In recent times, local people now prefer to have private vehicles rather than other forms of public transport. As people have obtained a higher level of buying power, they have changed their preferences too. However, export is considered as a larger GDP contributor of this nation. Export-oriented more business options and opportunities, especially with readymade garments (RMGs) had been required more movement of products that created more transportation and shipment related activities. Thus, the demand for vehicles has been increased. All the data has been collected from secondary sources and used multifactorial analysis to find the relation between vehicle sales with import, export, inflation, tax, population, GDP, GNI, etc. Most of the factor found positively correlated with sale of the private vehicle except inflation. GNI has been recognized as significantly associated and finally the market is expected to be positively increased.

Keywords:

GDP, GNI, Inflation, Population, Private vehicle, Vehicle market

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