Another sign of economic rebound: sales of commercial vehicles springing back
Sales of commercial vehicles like trucks and pickups have started to bounce back as economic activities are finally gaining momentum following a two-and-a-half-month-long government-enforced pause amid the pandemic.
On average, 20 units of trucks and 45 pickups were sold each day in July, while the numbers were 32 and 40 units respectively in the pre-pandemic period, according to market players.
Nitol Niloy Group, the sole distributor of Indian automobile giant Tata Motors, shifted more than 800 units of trucks and pickups in July from its inventory.
In normal times, the sales would be in the neighbourhood of 1,000 units, according to Abdul Matlub Ahmad, chairman of Nitol Niloy Group.
So promising is the rebound seeming that Ahmad is now fearing there might be a shortage of pickups because of the supply side disruptions in India.
"We can't import vehicles from India as per our requirements due to a massive outbreak of coronavirus in West Bengal," he said, adding that the inventory of trucks is sufficient at this moment.
Between 2010 and 2019, trucks and pickups, which provide major logistic support in export and import activities, worth about Tk 42,000 crore were sold, with 10 per cent average growth per year, industry insiders said.
Now, a total of 1.6 lakh trucks and 1.4 lakh pickups ply the country's roads.
Ahmad, also a former president of the Federation of Bangladesh Chambers of Commerce & Industries, hopes the economy will revive sooner rather than later seeing that the businesses are reopening even though there is no sign of the rogue pathogen slowing down anytime soon.
Sales of commercial vehicles depend on the existing market situation of the cement and steel sectors as well as export and import activities, said Taskeen Ahmed, managing director of Ifad Motors, the sole distributor of Indian automaker Ashok Leyland.
Migrant workers who have come back from abroad for good are purchasing pickups as an income source, which is also contributing to a rise in sales of commercial vehicles, according to Ahmed.
"We were at our wits' end during the government-announced general holidays. But as economic activities have begun to pick up gradually, we breathed a sigh of relief. I believe the sector will be able to survive the shocks and recover the losses in phases," he added.
Business improved much in June and July compared with April and May, said Hafizur Rahman Khan, chairman of Runner Group, distributor of Eicher branded trucks.
"This was beyond our expectation," he said, adding that it will take time to return to the pre-pandemic level.
In the first six months of the year, a total of 4,372 units of pickups and 2,229 units of trucks were registered in the country, according to the Bangladesh Road Transport Authority.