Sport utility vehicles (SUVs) and crossovers are overtaking sedans and hatchbacks as Bangladesh’s car buyers shift towards vehicles better suited to poor roads and daily congestion.
Bangladesh Road Transport Authority (BRTA) data show SUV and crossover registrations reached 10,700 units last year, surpassing 9,400 sedans, signalling a structural change in consumer preference.
Frequent speed bumps, pothole-ridden roads and persistent traffic congestion are pushing buyers to prioritise ground clearance, ride comfort and durability over style or status.
The shift reflects a broader change in consumer behaviour as buyers respond to road conditions, lifestyle needs and evolving expectations.
SUVs and crossovers have steadily gained ground since the start of the decade. Registrations stood at just over 7,600 units in 2021, up 54.8 per cent year on year. The figure crossed 10,000 units in 2022, although sedans still led with more than 16,000 units.
SUV registrations dipped to 7,765 in 2023 and 8,657 in 2024 before rebounding above 10,000 units last year. Crossovers, which combine an SUV body with a sedan chassis, are gaining popularity as a middle-ground option.
Price gap narrows
Entry-level SUVs now start at around Tk35 lakh, placing them close to popular sedans such as Toyota Allion or Premio, depending on trim and condition.
The narrowing price gap means buyers are no longer driven by cost alone.
Industry insiders say the appeal of SUVs blends functional and aspirational factors. Comfort, features and a sense of security are increasingly outweighing marginal fuel efficiency differences.
Some hybrid crossovers, including Toyota Corolla Cross, are also reducing the mileage gap through improved engine management.
“Last year, I bought a Toyota Avanza as my first vehicle. As a frequent intercity traveller, I regret the decision now. I should have gone for a proper SUV or crossover; spending a bit more would have been better,” said an architect Mahfuz Hossain.
Frequent intercity travellers, business professionals and politicians are among those favouring SUVs for smoother rides and better control.
Sedans and hatchbacks continue to attract price-sensitive and fuel-conscious buyers, but momentum is shifting.
Local assembly expands
Local vehicle assembly is expanding to meet changing demand patterns.
Rancon Executive Director Muhammad Mostafizur Rashid Bhuiyan said completely knocked down (CKD) assembly now accounts for more than half of the brand-new vehicle market.
“This indicates a broader shift toward localised production, technology transfer, and the gradual development of a stronger automotive ecosystem within Bangladesh,” he said.
Meghna Car Manufacturing Kia Automobiles Executive Director Anisuzzaman Choudhury said local assembly is improving SUV affordability.
“SUVs do not necessarily have to be expensive. Local assembly can significantly reduce the price of vehicles, including electric vehicles,” he said.
Completely built unit (CBU) imports face duties of around 132 per cent, while locally assembled vehicles carry less than half that burden.
Locally assembled SUVs are therefore becoming more competitively priced.
Importing painted bodies typically involves 60 to 70 per cent duty, depending on components.
Setting up a full automotive paint facility requires several million US dollars, leading many manufacturers to rely on hand-spray painting.
Kia continues to import pre-painted vehicles to maintain quality despite higher costs, he said, adding that the depreciation of the taka against the US dollar is pushing vehicle prices higher.
Kia is currently assembling four models in Bangladesh through Meghna Car Manufacturing Limited.
Other assemblers include Rancon, PHP Motors for Proton vehicles, and Fair Technology for Hyundai.
Premium demand rises
The SUV segment now spans a wide price range, from compact crossovers to luxury models.
Hybrid variants are gaining traction alongside locally assembled and imported vehicles.
Premium brands such as Range Rover, BMW, Mercedes and Audi are becoming more visible, with prices ranging from Tk60 lakh to Tk4 crore.
Executive Motors Director of Operations Ashique Un Nabi said SUVs remain a key growth segment.
“SUVs continue to be one of the strongest performing segments for us in Bangladesh,” he said.
“Customer interest in premium SUVs has grown steadily as buyers value versatility, comfort, and advanced technology,” he added.
The shift is unfolding amid global supply chain disruptions, rising freight costs and a stronger US dollar, all of which are pushing vehicle prices higher.
Industry players expect demand to persist, driven by rising incomes, rapid urbanisation, safety awareness and gaps in public transport.
With more models entering the market and local assembly moderating costs, SUVs are moving from a niche segment towards becoming a mainstream choice shaped by road realities and user experience.
The BRTA groups SUVs and crossovers under the “Jeep” category in its registration data, while sedans and hatchbacks are classified under the “car” category, which differs from common market terminology.
