Iran war sparks fuel fears, slows Eid motorcycle sales

Motorcycle sales ahead of Eid-ul-Fitr initially surged but have recently slowed as uncertainty in global energy markets -- triggered by the US-Israel war on Iran escalating -- has raised concerns over fuel availability and costs, dampening consumer enthusiasm.

Industry insiders say the conflict has pushed up global oil prices, raising worries about fuel availability and triggering panic buying.

Although the country meets the lion’s share of its petrol and octane demand domestically, disruptions in global supply and the crude price shock have affected these segments, slowing motorcycle purchases during what is usually a peak season.

Subrata Ranjan Das, deputy managing director of ACI Motors, said the Eid season began with strong sales momentum before concerns over fuel availability and rising costs began to weigh on buyers.

“The market had a promising head start before the war brought on disruptions. If we compare this Ramadan with the past one, motorcycle sales were about 30 percent higher than last year before the fuel crisis began,” he said.

However, momentum slowed in recent weeks as concerns spread, particularly in rural areas.

“During the Eid month, sales are usually about 30 percent higher than in a regular month,” he said.

Monthly sales normally stand at about 39,000 to 40,000 motorcycles but rise to around 52,000 units ahead of Eid, according to industry insiders.

“Once fuel availability returns to normal, sales momentum should recover,” Das said.

He also warned that rising global oil prices and a stronger dollar are increasing cost pressures for importers and distributors. “This may eventually affect prices in the market,” he added.

Shah Muhammad Ashequr Rahman, chief marketing officer of Bangladesh Honda Private Limited, said the market had started picking up ahead of Eid but suddenly slowed as panic over a possible fuel shortage spread at refuelling stations, even though there was no real supply disruption.

“The Middle East crisis has caused anxiety among motorcycle users about fuel availability, which has dampened sales ahead of Eid -- a period that usually contributes significantly to annual sales,” he said.

Rahman highlighted that motorcycles are increasingly becoming a practical and reliable mode of transport for daily commuting.

“Demand for motorcycles usually rises ahead of Eid as people prepare for travel and festive activities,” he said.

“Almost all brands offer attractive campaigns and benefits during the Eid season to share the joy of the festival with customers,” he added.

INDUSTRY OUTLOOK REMAINS MIXED

Shafkat Sakin, head of marketing at Suzuki Bangladesh, said it is still too early to assess the full impact of Eid on motorcycle sales as the market has faced several challenges.

“Eid sales have not closed yet, so it is difficult to give a concrete number right now.”

Suzuki has seen strong demand for specific models due to promotional offers, but Sakin said this does not reflect the performance of the entire market.

“If you compare the entire industry with last year, the market is still behind,” he said.

“The market structure has changed compared with last year. Some big players are not as active, and there has also been a shift towards electric vehicles. These factors are influencing the industry numbers.”

While final sales figures will only become clear after the Eid season ends, Sakin said the overall outlook remains mixed.

“I sense that this year’s Eid-ul-Fitr will still be the peak sales period for motorcycle brands, but it may not be as strong as last year,” he said.

He also pointed to fuel availability concerns as a factor slowing purchases.

“In some cases, customers are buying motorcycles but taking delivery several days later. If they cannot easily access fuel, they hesitate to use the bike immediately,” Sakin said.