Import of 375cc motorcycles on the cards, questions over new policy
The process is underway to lift restrictions on the import of motorcycles with engine capacities of up to 375cc into Bangladesh.
At present, there are no restrictions on importing motorcycles of up to 165cc. These motorcycles can be imported either as completely built units (CBUs) or manufactured locally using imported components.
The import of motorcycles above 165cc in fully assembled form is currently prohibited. However, machinery and parts can be imported for local production of motorcycles with engine capacities of up to 500cc. Now, a process is underway to allow the import of fully built motorcycles with engine capacities of up to 375cc.
The proposed Import Policy Order for 2026–2029 states that the import of all motorcycles above 375cc will remain prohibited. However, this upper limit will not apply to law enforcement agencies, the military, and paramilitary forces, subject to approval from the relevant ministry. In other words, fully assembled motorcycles of up to 375cc will be allowed to be imported.
Speaking to Prothom Alo on condition of anonymity, a senior official at the Ministry of Commerce said that the Ministry of Home Affairs has agreed to the proposed engine-capacity limit. The policy is being formulated through consultations with stakeholders. He added that the Import Policy Order is now in its final stage and could be issued within this month.
Sources in motorcycle manufacturing and marketing companies said that several firms have been lobbying to create opportunities for importing high-capacity motorcycles in fully built condition.
People associated with the motorcycle sector say that allowing imports of high-capacity motorcycles as CBUs would primarily benefit a few new brands. These companies would be able to import such motorcycles without setting up factories in Bangladesh. In addition, some importers outside the official distributor network of foreign brands reportedly import motorcycles through under-invoicing. They may now be able to bring in high-capacity motorcycles while evading taxes.
On the other hand, some brands that have already established factories in Bangladesh could suffer financially. They may face competition from imported high-capacity motorcycles. Marketers of these brands argue that allowing fully assembled motorcycle imports offers little benefit to the country. It would neither create local value addition nor employment in factories; rather, it would increase the outflow of foreign currency.
Sector insiders also point to another concern. The police currently use motorcycles of up to 165cc. If higher-capacity motorcycles become more common, they believe it could increase risks in maintaining law and order.
According to the Bangladesh Motorcycle Assemblers and Manufacturers Association (BMAMA), around 10 motorcycle manufacturing plants have been established in Bangladesh since 2018. Motorcycles of well-known Japanese and Indian brands are now produced locally. Total investment in these factories amounts to approximately Tk 80 billion.
The government introduced the Motorcycle Industry Development Policy in 2018. Companies made their investments based on that policy. However, motorcycle-related regulations have been changed repeatedly since then. Local partners of foreign investors believe such policy shifts create uncertainty about Bangladesh as an investment destination.
Bijoy Kumar Mondal, Chief Executive Officer of HMCL Niloy Bangladesh Limited, which manufactures Hero motorcycles in Bangladesh, told Prothom Alo that motorcycle policies are changed too frequently. Without policy continuity, foreign investment is discouraged.
He said that if imports of fully assembled motorcycles are allowed, his company could also bring in high-capacity motorcycles from new brands. Nevertheless, he does not support abrupt policy changes.
In October 2023, the Ministry of Home Affairs allowed motorcycles with engine capacities of up to 375cc to operate in Bangladesh. At the time, however, it stipulated that motorcycles of up to 375cc could only be registered if they were manufactured domestically. Now, a little over two and a half years later, the government is moving to permit the import of high-capacity motorcycles as CBUs.
Meanwhile, the motorcycle market is experiencing a downturn. The Motorcycle Industry Development Policy of 2018 set a target of producing one million motorcycles annually in Bangladesh by 2027. In reality, annual sales are currently below 500,000 units.
An executive of a motorcycle marketing company in Bangladesh, speaking on condition of anonymity, told Prothom Alo that no company that has established a motorcycle factory in the country is earning the level of profit it had expected. At the same time, motorcycle policies continue to change from time to time, often in the interest of only a few stakeholders.
He argued that policymaking should take the entire sector into consideration. Otherwise, foreign investors may eventually turn away from Bangladesh.