Commercial Vehicle Industry: Rolling the Wheels of Economic Growth
With the expansion of the manufacturing sector in our country, the demand for the commercial vehicles is on the rise than ever. Manufacturers of various goods and logistics companies are the end customers of commercial vehicles, as they require transportations to deliver goods to various points all over the country. Due to the countrywide shutdown, the industry suffered from negative growth for the first time in the last few years. However, the pandemic-stricken economy is reviving in tandem with the recovery of the commercial vehicle industry.
GDP of Bangladesh is projected to reach 340 billion USD in 2022. Keeping pace with that, the commercial vehicle industry is expanding by 15% to 20% every year. Fast track projects undertaken by the government to develop the roads and highways of the country are helping to sustain the growth. Technological advancements have touched this sector as well like many other sectors. Resultantly, technologies like GPS and smartphone apps like Truck Lagbe, GIM, Loop Freight etc. have already become widely available to city dwellers and have positively impacted the industry.
Needless to say that the success of trade and commerce of a country largely depends on its well-structured transportation system. Keeping that in mind, the government in collaboration with foreign investors is patronizing local assembly with the goal to manufacture commercial vehicles with locally sourced materials.
Like every other industry, this industry is also going through some major challenges. Congested traffic, unsafe roads, poorly trained drivers, high import duty etc. are some of major challenges that must be mentioned. Government initiative to formulate industry-friendly policies and proper implementation of them is highly required to help this potential industry flourish.
RIFAT ISHTIAQ KHAN
Manager
IDLC Finance Ltd.