Bangladesh used car market

Japan is a great exporter of used vehicle around the world. With every passing day, the popularity of Japanese vehicles is increasing. They are famous for their reliability, comfort and durability. There is no doubt that Japanese automakers are more devoted towards their work, hence the end result are always a vehicle that one feels proud to drive. Almost all country across the world import used vehicles from Japan. Like other countries, Bangladesh, a low-lying riverside country located in South Asia import large of used vehicles from Japan. Bangladesh is an important place for exportation of Japanese used vehicles.

Since 1971 Bangladesh Independent Movement, Bangladesh has close ties with Japan, as the later helped the former in getting independence. Since then, there are good trade relations between both countries. Japanese used cars are popular in the country as they are dependable, high on quality and safe to drive. The reduction in the import cost helped in the increment of sales of second-hand vehicles. Around 80 percent of the used car market in Bangladesh is controlled by Japan. Popular Japanese automakers that dominate Bangladesh roads are Toyota, Honda, Nissan and Mitsubishi. Out of all, Toyota accounts for 75 percent of the market.

The economy of the country is growing progressively at around 6% over the last decade and in coming years it is expected to reach around 7-8%. The economy of Bangladesh is developing. Also there are fast growing middle class people in the country. The sales of used cars has increased rapidly in Bangladesh in the recent years as more and more middle class people are buying cars. With the advancement in technology, and presence of many portal sites it has become easy for the importers to purchase a vehicle. Buyers go online and compare the prices of various models all at a time, instead of visiting showrooms.

The importation of used vehicle in the country is also not a burdensome task. While importing a vehicle, importer should know and follow all import rules and regulations in order to clear customs smoothly. Importer should take into account that vehicles imported are right hand drive vehicles. Also imported used vehicle should not be over 4 years and should be JAAI (Japan Auto Appraisal Institute) certified. It is allowed to import used car from its country of origin only. Even the duties on used vehicles imported in the country are not much.

Import Tax Rate:-

• Import Tax: 0-40%
• VAT 15%
• 2.5% infrastructure development surcharge is levied on imports

Note- Excise taxes are also levied on vehicles. Duty free importation of one used vehicle in Bangladesh is allowed only for Diplomats and Privileged Persons. All other Bangladesh nationals and foreigners have to pay duties to import a used vehicle.

Thousands of used vehicles from Japan are exported to Bangladesh and numbers are increasing continuously at a high speed. Bangladesh has all ingredients for development and growth of strong automobile market. As the automobile sector of the country is not developed, it import many used vehicles from Japan, thus provide ample opportunities to used vehicle exporters to make a fortune.