SUV sales in Bangladesh double in 5 years

The demand for SUV, or Sports Utility Vehicles, in Bangladesh has been steadily rising.

Over the past five years, sales of this category of vehicles have increased by approximately 77 per cent. Globally, SUVs accounted for 48 per cent of all cars sold in 2023.

Industry insiders attribute this trend to the country’s growing economy over the last two decades, which has expanded the purchasing power of a segment of consumers.

Additionally, SUVs are considered comfortable for long-distance travel and are highly popular among families. Those who have previously used sedan cars are now showing greater interest in switching to SUVs.

According to data from the Bangladesh Road Transport Authority (BRTA), a total of 4,888 SUVs were registered in the country in 2020. By 2024, this figure had risen to 8,648 – an increase of around 77 per cent in just five years.

As of 13 October this year, over 8,000 SUVs had already been registered. From 2020 to 13 October 2024, Toyota topped the list with more than 23,000 SUVs registered, followed by Nissan with nearly 6,000.

According to the International Energy Agency (IEA), SUVs represented 48 per cent of global car sales in 2023. In the same year, one in every four cars on the world’s roads was an SUV.

Furthermore, over 55 per cent of all newly registered electric vehicles worldwide in 2023 were SUVs.

IEA data show that in 2014, global sales of conventional fuel-powered SUVs stood at 18.1 million (1 crore 81 lakh) units, compared with 4 million (40 lakh) electric SUVs.

By 2023, sales of fuel-powered SUVs had risen to 29.4 million (2 crore 98 lakh), while electric SUV sales reached 7.8 million (78 lakh).

Conversely, sales of sedan-type vehicles declined – from 60.5 million (6 crore 5 lakh) in 2014 to 40 million (4 crore) in 2023. This indicates that while sedan sales have dropped, SUV sales have grown significantly.

Speaking about the rising demand, Mohammad Fahim Hossain, Head of Marketing at Rangs Limited, told Prothom Alo, “SUV sales are increasing globally and we have scaled up our production to meet the growing demand.

These vehicles offer great comfort during long-distance travel. As the tax rates for sedans and SUVs are now the same in Bangladesh, buyers are showing a clear preference for SUVs.”

According to the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), 1,209 reconditioned SUVs were imported into the country during the 2019–20 financial year. This number rose to 5,392 in the 2024–25 financial year.

BARVIDA’s Secretary General, Riaz Ahmed, said the main reason for this increase is the growing domestic demand. “Since 2021, Toyota has discontinued production of its Allion and Premio models.

"As a result, their prices have risen to between 4 and 5 million (40 to 50 lakh) taka, depending on the model. For the same price, customers can now buy SUVs such as the Toyota Corolla Cross, C-HR or Nissan X-Trail. These hybrid vehicles are also fuel-efficient,” he explained.

Shafiqul Islam, Chief Operating Officer of HNS Automobiles, said, “Although the overall car market in Bangladesh is not very strong at present, the demand for SUVs remains high.

Among reconditioned vehicles, Toyota’s Corolla Cross is the top seller, accounting for nearly 50 per cent of the market share.”

BRTA data show that between 2020 and October 2024, a total of 169 BMW sedan cars were sold in Bangladesh, compared with 301 BMW SUVs. During the same period, Audi sold only 97 sedans, while 145 of its SUV models were registered.

Executive Motors, the authorised distributor of BMW in Bangladesh, stated that many customers opt for SUVs with long-distance travel in mind.

“Because of their larger size, SUVs offer a more comfortable and safer driving experience on highways,” said Abdur Rahman, the company’s General Manager of Sales.

Former BARVIDA president and Auto Museum proprietor, Habibullah Don added, “Globally, Japanese companies such as Toyota, Honda and Nissan dominate SUV sales. Due to the growing popularity of SUVs, even luxury sports car manufacturers are now entering the SUV segment. For example, Lamborghini has introduced the Urus crossover SUV, while Rolls-Royce has also begun producing large-sized SUVs.”