Motorcycle- An Industry of New Era


Bangladesh is a high-dense country in the world. Total population of the country is near about 16 crores. Among total population approximately 80 percent people live in the rural areas and depend on agriculture. As part of infrastructural development in the country, an extensive road-network has been made in the rural areas creating opportunities for trade and commerce. Because of its versatile, motorcycle is one of the modes of transportation have increased causing a significant growth in the motorcycle market in Bangladesh. To fulfill the demand of the customers several companies now are marketing motorcycle. There are about 100 automobile companies are operating their marketing activities in Bangladesh. Among them 10 – 12 companies are enjoying majority of the market share. These companies are following marketing strategies of their own to capture the market share. Market share of these companies is gained and expanded by following the four P’s (Product, Price, Place and Promotion) literally. The implementation of these four P’s is studied for conceptualizing the marketing program of these companies. Among motor cycle companies Uttara motors ltd, Atlas BD, TVS auto BD Ltd., ACI, Runner Automobiles Limited, Singer Bangladesh Ltd. and Walton are best.

Success of this motorcycle business largely depends on the activities of the marketing division. To increase the sales of motorcycle and achieve target sales, sales department maintain strong relationship with dealers- relationship marketing. For promoting brand and the companies’ image various promotional activities are conducted. The sales training department provides training facilities to make sales people skilled and knowledgeable. In Bangladesh, motorcycle companies segment their market based on four segment variables – geographic, demographic, psychographic and behavioral data.

In Bangladesh appropriate application of the 4p’s is most significant. Price is an important factor directly related to market share and profit margin. To attract large number of customers and to win the market share motorcycle companies adopt market penetration pricing strategy. When this product reaches maturity stage and establishes as a brand then the companies raise their price and adjust with competitors’ price. For expanding motorcycle market, companies conduct their promotional activities through advertising, incentive packages, participation in exhibitions etc.

Motorcycle distribution depends mainly on the dealers and distributors within the country. Major dealers directly interact with the company’s sales executives (for purchasing motorcycles). Companies select distributors based on the demand position, sales volume etc. Motorcycle companies also perform various social activities for upholding the image of the company. They also set their sales target by using the marketing control process which in turn helps the companies to take corrective actions to achieve their objectives. Keywords: Marketing Strategy, Four P’s, Relationship marketing, Market Segmentation, Market Penetration, Market Positioning, Maturity stage, Marketing Control process, Product differentiation, Marketing Information System (MIS), Target Sales, Target Customers Introduction

In motorcycle market product differentiation is very difficult because the products are durable but more or less homogeneous. Yet companies offer some differentiation of products like design, feature and performance of the product. They are trying to ensure better services to the customers. They provide services to the customers which will be different from the competitors in some extent. Providing services are replacement of damaged product, broken spare-parts and ensuring quick supply through own distribution channel. Companies are providing after-sales-services for bonding and strengthening the customer relationship. For this purpose, they have experienced technical team which is generally headed by a General Manger. They foster various mobile service teams operating in different part of Bangladesh. Every team follows a yearly service calendar. Service mobile teams ensure warranty. Warranty replacements are made within 48 hours. Every automobile company, operating in Bangladesh, has a central workshop to ensure the after-sales-service to the customers. Companies are offering personnel differentiation from their competitors to attract their customers. They are recruiting competent and responsible personnel. As a result, they have qualified management and they are providing training facilities to the personnel in modern and well communication system.

Motorcycles mostly come from INDIA or from CHINA in Bangladesh.  The percentage of Japanese motorcycles (ORIGINALLY MADE IN JAPAN) in Bangladesh are decreasing & the market share of Indonesia & Thailand is very less too. Last year the Indian government announced some new Regulation in the Indian Motorcycle Industry for 2017. Let’s find out the two new regulations which might also effect the Bangladesh market.

BS4 Standards Engines:

One of the first things about the new regulation is that all companies must meet BS4 standard. BS (Bharat Stage Emission Standards) is an emission standards institute by the Indian government to regulate the output of air pollution from motorcycle engines. Under the new BS4 regulation all bikes need to reduce the amount of carbon dioxide & other pollution from the engine..

According to reports all motorcycles must have BS4 standard engine from April 1st, already in European countries they follow the Euro IV emission standard. This reduction will be between 23-50% depending on the size of the motorcycles.

AHO (automatic headlight on):

I think some bikers are already familiar with this, if not then this new regulation will have your motorcycle headlights ON all the time since you have turn on the ignition of your bike, examples: Yamaha M SlazHonda CBR150R (2016)Honda CB150R Streetfire.

These though is not healthy for the battery but it is standard in almost all countries these days and it is very helpful on the highway as now the buses & trucks will be able to spot you more carefully.

Advantages of new Regulations:

  • Less pollution for the environment.
  • New Technology.
  • Many bikes companies will come with new color or graphic changes.
  • AHO very helpful for highway rides.

Disadvantages of BS4 standards:

  • Most of the carburetor engines will have lesser power output.
  • AHO will be irritating for the riders as people will be asking you to turn the headlight OFF.
  • Price of the bikes went high in India so might also effect Bangladeshi market.
  • List of companies who brings motorcycles in Bangladesh from India
Distributor or Registered  in Bangladesh BRAND
Bangladesh Honda Pvt Ltd Honda
ACI Motors Ltd Yamaha
Rancon Motorbikes Ltd Suzuki
Uttara Motors Ltd Bajaj
Niloy Motors Ltd Hero
TVS Auto Bangladesh TVS
Navana Automobiles Mahindra


There are at best as seven motorcycle manufacturer in Bangladesh who are trying to do what company like Bajaj, Honda, Hero and TVS did many years back, made a name of themselves among the local customers. Walton and Runner are the two most popular manufacturers in Bangladesh while new company like HPM, Singer, HNS and Lifan are trying to have a tough fight with them.

What this manufacturer does is they bring parts from various source and then assemble the bikes in Bangladesh. Many a times some parts are manufactured by them or obtained from the local market. But usually the engine parts or the engine are imported from China.

So the question is are they good?? Well almost all of them give an engine warranty of 2 years or 20000 km, the bikes are not as powerful as the counterpart but they are cheap. Considering all the facts, Motorcycle Industry has created much appeal to the industrial entrepreneurs and they’re willing to invest more liquids in this sector. Government is also in favor of this industry. If we can compete with the neighboring countries, we’ll be able to safe a vast amount of currency which may call to total development of the country.

Source: The Financial Express



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