From Mercedes to BMW: How a luxury car rental service in Ctg gains traction
These cars are especially sought after for use in wedding ceremonies
Most people in the country find it financially challenging to indulge their desire to ride in a luxury car. A young entrepreneur in Chattogram recognised this longing and embarked on the unusual niche.
Kamal Hossain, who had just returned from the United Arab Emirates, initiated a luxury car rental business in Chattogram.
His company, Royal Auto Rentals, boasts an impressive fleet that includes esteemed brands such as Range Rover, Land Cruiser Prado, Xtrail and BMW and Mercedes Benz cars.
Having spent an extended period in various Middle Eastern countries, Kamal returned to Bangladesh due to business setbacks precipitated by the Covid-19 pandemic. He retained a portion of the earnings he had accumulated while working abroad as an expatriate.
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But after returning to the country he encountered difficulties in identifying a low-risk business opportunity. Consequently, he grappled with unemployment for nearly two years.
However, in January this year, the young man launched his car rental venture. Starting with a capital of around Tk1.20 crore, he initially introduced Range Rover and BMW vehicles to his fleet.
"Despite the multitude of car rental companies in Chattogram, I aspired to carve a distinctive path. Thus, I embarked on establishing my enterprise centred around luxury cars. Recognising the latent demand for opulent vehicles in Chattogram and the lack of a commercial presence in this niche, I seized the opportunity and have had a favourable reception," Kamal Hossain told The Business Standard.
He said, "Initially, I had some concerns about the feasibility of achieving success with these luxury cars in the rent-a-car market. But, I am now pleasantly surprised to witness a response that has exceeded my initial targets."
Following the company's initial triumph, three additional investors eagerly injected a substantial amount of capital into Kamal's enterprise. The company now has five cars.
Currently, not factoring in expenditures, the company boasts a monthly revenue of around Tk15 lakh, Kamal Hossain said.
The entrepreneur said these opulent vehicles are available for rent at rates ranging from Tk10,000 to Tk20,000 per trip within the confines of Chattogram city. Nevertheless, should the journey extend beyond city limits, a slightly augmented fare applies.
While Royal Autos Rentals has its office and garage on Chatteswari Road in the city, the company is witnessing a more substantial response through its Facebook page.
Initially, due to slightly higher rental rates, the customer response was relatively lower. However, as adjustments were made to render rental costs more manageable, these luxury cars are currently experiencing a surge in demand. Each vehicle now garners an average of 25 trips per month.
Kamal said these cars are especially sought after for use in wedding ceremonies. Additionally, business and industrial groups utilise these vehicles as transport for foreign buyers. Moreover, many individuals indulge in the luxury car experience for leisurely family travel.
Originally from the Ghasiyar Para locality of Chattogram city, Kamal Hossain embarked on a journey to Saudi Arabia in 2015 in pursuit of a livelihood. His initial occupation involved employment at a furniture factory. Subsequently, he established a modest furniture workshop in Mecca.
In 2017, he relocated to the United Arab Emirates, where he established a burqa manufacturing unit staffed by two employees. However, due to the onset of the pandemic, he was compelled to shut down the business in late 2020 and return to Bangladesh.
"Despite these circumstances, I managed to retain some money. Upon my return, I decided to sell a portion of my inherited land and channel all of the proceeds into launching the car rental venture," Kamal Hossain said.
