Bangladesh’s reconditioned vehicle industry is grappling with a sharp downturn, with import registrations plummeting nearly 30 percent in 2024 amid mounting economic pressures.

At a press conference in Dhaka, the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) urged the government to reduce supplementary duties (SDs) on hybrid vehicles in the upcoming 2025–26 budget to make cars more affordable and promote green mobility.

“Our sector is at a crossroads,” BARVIDA President Abdul Haque told reporters at FARS Hotel and Resorts. He cited rising import costs, a weakening taka, higher consumer loan rates, and stagnant middle-class incomes as key factors behind the market’s decline.

Haque argued that Bangladesh’s tariff structure, which calculates SDs based solely on engine displacement, is outdated and penalises hybrid technologies despite their environmental advantages. Consequently, hybrid vehicles remain unaffordable for many middle-income consumers.

He warned that without immediate reforms, Bangladesh risks lagging in the global shift towards cleaner transport solutions. “Countries like Singapore have mandated full transitions to hybrid or electric vehicles by 2030, and our regional neighbours are offering aggressive tax incentives,” Haque said.