Private cars decline on the roads: What is driving the change?

At one time, owning a private car was one of the major aspirations of Dhaka’s middle class. Many people would plan to buy a car as soon as their income increased somewhat. But rising prices of essentials, the cost of living, and higher fuel and maintenance expenses are changing that calculation. For the middle class, buying a car has now become a luxury. Even those who can afford to buy one are asking themselves whether such a large investment and regular expenses are really necessary just for commuting.

The change is clearly reflected in registration statistics from the Bangladesh Road Transport Authority (BRTA). In 2017, the country recorded the highest-ever annual registration of private cars, at 21,952. The market has not returned to that level since. In 2025, registration of new private cars fell to 9,387. Up to August this year, 5,458 new private cars had been registered. Compared with 2017, the number of new private car registrations in 2025 fell by more than 57 percent.

Industry insiders say the decline cannot be viewed simply as a crisis in the car market. They point to a direct link with the financial pressures facing the middle class and changes in commuting patterns in Dhaka. The cost of owning a car has also become a major concern. Driver salaries, fuel, maintenance, spare parts, repairs and parking together require a substantial amount of money every month. As a result, many families now consider owning a private car a deferrable expense when balancing it against other household costs.

Explaining the reasons behind the decline in private car ownership, Abdul Haque, president of the Bangladesh Reconditioned Vehicle Importers and Dealers Association (BARVIDA), told Agamir Somoy, “The middle class is shrinking in the country. Economic factors are a major reason behind this. Middle-class families no longer think about buying cars the way they used to. The cost of using a car is becoming higher than the cost of buying one. At the same time, they now find alternative modes of transportation more convenient than owning a private car.”

An analysis of BRTA data shows that private car registrations followed a broadly upward trend from 2011 to 2017. In 2011, 12,942 cars were registered. Although the figure fell to 9,220 in 2012, it began rising the following year. A total of 10,456 cars were registered in 2013, 14,681 in 2014 and 21,029 in 2015. The figure fell slightly to 20,268 in 2016, before reaching a record high of 21,952 in 2017.

A decline began thereafter. In 2018, 18,222 cars were registered, followed by 16,779 in 2019 and 12,403 in 2020. Although the market saw some recovery in 2021 and 2022 following the Covid-19 pandemic, it was not sustained. After 16,695 registrations in 2022, the figure dropped sharply to 10,784 in 2023. It stood at 10,499 in 2024 and 9,387 in 2025. In other words, new private car registrations fell by around 35 percent between 2022 and 2023 alone. The decline has continued since then. This makes it difficult to explain the trend simply as a temporary post-pandemic crisis; rather, the statistics indicate a change in the purchasing capacity and priorities of private car buyers.

Experts say the major problem for the middle class is now not just the cost of buying a private car but also the recurring expense of keeping one. A driver’s salary alone can cost a car owner Tk 16,000–20,000 a month. Fuel, maintenance, spare parts and repair costs are added to that. As a result, the financial burden on a household continues for as long as the car is kept.

At the same time, traffic congestion and parking shortages in Dhaka are reducing the time-saving benefits of private cars in many cases. As a result, the question facing the middle class is no longer simply whether they can afford to buy a car, but whether they both need and can afford to keep one.
Alternative transportation has expanded alongside this change. With the spread of ride-sharing services, motorcycles have become an easily accessible means of getting around quickly. Since people can request a ride on their mobile phones whenever needed and reach their destinations, many no longer feel the need to own a car solely for commuting. Similarly, the metro rail has changed the daily commuting patterns of people in several important areas of Dhaka. It has created an opportunity for office-goers, in particular, to travel relatively quickly along specific routes. Combined with rickshaws and other short-distance modes of transport, these services have also made it possible to cover the “first and last mile” without owning a car.

According to transport experts, the growing availability of ride-sharing services and public transport alternatives is reducing the need for private cars to some extent. In the past, people without their own cars had to rely on taxis or public transport. Now, there are multiple options available depending on their needs. As a result, instead of investing a large amount of money in buying a car, more people are opting to hire transportation when necessary. For individual passengers, motorcycles have emerged as an alternative to taxis.

From independence until August this year, a total of 434,813 private cars have been registered in the country. Of these, 2017 recorded the highest number of registrations. Since then, the new private car market has contracted by more than half over nearly a decade. The decline is not merely a reflection of fewer car purchases; it also indicates a shift in the economic priorities of the middle class. Once, buying a car as income increased was considered a natural part of improving one’s lifestyle. Now, households have to weigh the cost of owning a car against rent, education, healthcare, food and other expenses. As a result, decisions to purchase cars are being postponed.

At the same time, the growing availability of faster transportation without owning a car is making that decision easier. As commuting patterns in Dhaka change, so too are the aspirations of the middle class surrounding private car ownership.

Transport expert Professor Shamsul Haque of Bangladesh University of Engineering and Technology (BUET) told Agamir Somoy, “Traffic congestion, inadequate parking, vehicle maintenance and finding a driver—all together have made owning a private car a source of considerable hassle. Not only in Bangladesh, but around the world, private car ownership has started to decline following the spread of ride-sharing services. People no longer want to take on the hassle. Even though banks are readily offering loans to buy cars, people are still not showing much interest.”