Tariqur Rahman Khan, a resident of Banasree in the capital, switched from his Toyota Corolla 100 to a 2014 Toyota G Fielder hybrid in 2021. Reflecting on the move, he told The Times “I made the right choice by choosing a hybrid vehicle.”
Khan is far from alone. Over the past decade, nearly 87,000 hybrid vehicles have been sold in Bangladesh, turning what was once a niche segment into the dominant force in the country’s passenger car market.
In 2025, hybrid vehicle sales surpassed gasoline-only car sales for the second consecutive year, with around 15,000 hybrids sold, compared with just over 11,000 conventional vehicles.
This means hybrids accounted for 56 per cent of all passenger car sales in 2025, up sharply from less than 1 per cent a decade ago — a dramatic increase of more than 55 percentage points.
Over the 10-year period from 2016 to 2025, hybrids represented approximately 31.5 per cent of total car sales in Bangladesh.
What began in 2016 as an almost invisible segment, with only 97 units sold nationwide, has since evolved into one of the most significant shifts in the domestic automobile market.
Hybrid vehicles have steadily reshaped consumer demand, challenging the long-standing dominance of conventional fuel-powered cars. Industry insiders say the shift reflects a deeper structural change rather than a temporary trend.
Although sales have recently slowed amid fuel supply concerns linked to the Middle East crisis, importers and assemblers believe the dip will be short-lived.
Fuel Efficiency Drives Demand
For Khan, fuel economy was the deciding factor.
Within city limits, his hybrid delivers around 15-16 kilometres per litre, while on highways it reaches 26-27 kilometres per litre.
By comparison, his old Toyota Corolla 100 managed only 5-6 kilometres per litre in Dhaka traffic.
While converting conventional vehicles to LPG or CNG remains an option for some motorists, Khan said factory-built hybrids offer greater peace of mind as they come as factory stock. “There’s no need to cut or modify anything, which could damage the engine,” he said.
He added that battery-assisted driving keeps the engine cooler, helping extend engine life. Environmental considerations also influenced his decision.
Tax Incentives, Japanese Supply Support Growth
Abdul Haque, president of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), said rising hybrid adoption in Japan since 2010 has directly influenced the Bangladeshi market.
“Beyond better mileage, the growing popularity of hybrid vehicles in Japan’s domestic market has contributed to their increasing presence here,” he said.
He added that government incentives on the import of both new and reconditioned hybrid vehicles have made them more affordable.
“As a result, we can pass the cost benefits to consumers, giving hybrids a clear pricing advantage,” Haque said.
Service Ecosystem Expanding
One of the earlier concerns among buyers was the shortage of trained hybrid mechanics.
Khan said that while such technicians were rare when he purchased his vehicle in 2021, availability has improved significantly in recent years.
Abbas Hossain, owner of a maintenance workshop in Rayer Bazar, told The TIMES, “When I opened my shop three decades ago, cars and spare parts were very different. I have remained in business because I kept upgrading my skills and learning about newer models out of personal interest.”
He said staying competitive in the sector now requires constant adaptation.
“One has to stay updated with new models to remain in business. Now my workers and I can repair hybrid cars because parts and manuals are available. If we face something unfamiliar, we also watch YouTube videos,” he added.Manufacturers including Toyota, Honda and Nissan expanded hybrid line-ups aggressively during the 2010s, creating a large pool of used and reconditioned vehicles for export markets such as Bangladesh.
Today, hybrid models are increasingly common on Dhaka’s roads — driven less by environmental concerns and more by their reliability, resale value and lower fuel costs.
Conventional Cars Lose Ground
Since imports of reconditioned vehicles accelerated in FY18, hybrid sales have risen steadily, while conventional vehicle sales have declined.
Gasoline-only car sales fell from 32,441 units in 2017 to 11,112 units in 2025, underscoring the market shift.
A decade ago, hybrids were a fringe product. Today, they outsell conventional vehicles — a clear sign that Bangladesh’s car market is undergoing a lasting transformation.
