Since the Second World War the automotive industry has become an important sector of the Bahamian economy, contributing a large portion of the country's total tax revenue.

The Bahamas Motor Dealers Association is a not-for-profit trade association that represents franchised new vehicle dealers , parts and accessory companies. It was founded in the early 1970s to give the Bahamian consumer the best transportation choices available.

The automotive industry employs over 400 people and injects more than $35 million a year into the economy through taxes, wages and other overheads.

BMDA members sold almost 4200 new cars and trucks during 2007 - about a third were passenger vehicles, a quarter were commercial vehicles, and the rest were sport utilities.

A variety of after-market parts and accessory suppliers provide vehicle owners and enthusiasts with just about every automotive-related product possible. In addition to auto parts sales, some of these companies also feature auto repair and maintenance services. All automotive parts are subject to price control with a maximum allowable 75 per cent markup.

All new cars and trucks sold in the Bahamas are also price-controlled and taxed by the government at more than half of their landed cost 55% to 85% for vehicles and 55% for parts). In addition to BMDA sales, individuals and car lots import an estimated 12,000 used vehicles a year. There are currently some 250,000 or more registered vehicles in the Bahamas.