Bangladesh's reconditioned vehicle industry is facing a serious downturn, with import registrations falling nearly 30 percent in 2024 amid economic headwinds.

At a press conference in Dhaka today, the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) called for urgent policy reforms, particularly a reduction in supplementary duties (SDs) on hybrid cars, to restore affordability and promote green mobility.

According to BARVIDA President Abdul Haque, rising import costs, a depreciating taka, high consumer loan rates, and stagnant middle-class incomes have battered the reconditioned car business, traditionally a critical pillar supporting the country's urban mobility.

"Our sector is at a crossroads," Haque told reporters at FARS Hotel and Resorts in Dhaka.

"Reconditioned cars are no longer the affordable option they once were. We need immediate policy interventions to prevent the market's collapse and drive the adoption of fuel-efficient, environment-friendly vehicles."

A major part of BARVIDA's proposals for the upcoming 2025–26 national budget is the reduction of SDs on hybrid vehicles.

Haque said that while many countries are slashing duties and offering incentives to accelerate the transition towards green transport, Bangladesh's tariff structure remains "outdated and punitive".

Currently, SD rates are based on engine displacement (cc slab), which, according to Haque, fails to account for the fuel-saving and environmental benefits of hybrid technologies. As a result, hybrid vehicles, despite their superior efficiency, are often priced beyond the reach of middle-class consumers.

"Without correcting the duty structure, Bangladesh risks falling far behind the global movement toward net-zero carbon emissions," said the BARVIDA president.

He pointed out that countries like Singapore have already mandated a full transition to electric or hybrid vehicles for personal transport by 2030. Even closer to home, regional neighbours are rolling out aggressive tax incentives for hybrid and electric vehicles.