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Driving Towards a Greener Horizon: The Electric Vehicle & Bangladesh

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The rumble of internal combustion engines has long defined our daily commute, the symphony of urban life in Bangladesh. But a new, quieter hum is gradually emerging – the sound of electric vehicles (EVs). While still in its early stages, Bangladesh’s EV market is brimming with potential, promising a transformative shift in how we move, work, and live. This article delves into the current landscape, future possibilities, and the profound impact EVs can have on individuals, the economy, and our environment.

 

The Dawn of Electric Possibility

Bangladesh, a nation striving for sustainable development, faces significant challenges from air pollution and a heavy reliance on imported fossil fuels. In this context, electric vehicles present a compelling solution. The government has set an ambitious target: achieving 30% EV penetration by 2030, a clear signal of their commitment to this green transition. This vision aligns with Bangladesh’s Nationally Determined Contributions (NDCs) to unconditionally reduce 3.39 million tonnes of CO2 emissions from road transport by 2030.

While the number of electric cars is still relatively low, electric three-wheelers, often referred to as “easy-bikes” or “auto-rickshaws,” have already become a common sight, highlighting the existing, albeit informal, adoption of electric mobility. This grassroots movement demonstrates a foundational acceptance of electric propulsion, laying the groundwork for broader EV adoption.

 

Paving the Way: Scopes and Infrastructure Development

The potential for EVs in Bangladesh is vast, spanning various segments from two-wheelers and three-wheelers to passenger cars and even commercial vehicles. The recent fiscal incentives introduced by the government, including duty benefits for local manufacturing of green vehicles and batteries, are a significant step. These incentives aim to replicate the success seen in localizing fossil fuel-powered vehicles, encouraging investment from both local and international players. Global EV giants like BYD and e-bike maker Yadea have already entered the market, and local companies like Runner Group are exploring localization opportunities.

Automakers, represented by the Bangladesh Automobiles Assemblers and Manufacturers Association (BAAMA), are eagerly anticipating and advocating for a local manufacturing-friendly duty structure for EVs and hybrid cars, similar to policies for petrol cars. They emphasize that while importing an electric car currently incurs an 89% duty and taxes (less than the minimum 127% for a 1600cc petrol car), the absence of specific incentives for local EV manufacturing is a significant barrier. Companies that have invested in local EV manufacturing are facing production deferrals and financial losses due to this lack of incentives, highlighting the urgency for policy support to foster domestic production.

However, a critical challenge remains: the nascent charging infrastructure. As of June 2025, Bangladesh has only 14 officially approved EV charging stations, primarily in major cities like Dhaka, Chittagong, and Comilla. While private initiatives are expanding this number (some reports suggest nearly 100 public and private stations), a robust and widespread network is crucial for addressing “range anxiety” – the fear of running out of charge on longer journeys. Plans are underway to expand charging infrastructure across the country, focusing on highways and urban areas, with a target for 30% of chargers to use solar power by 2030.

The development of this infrastructure requires significant investment and coordinated efforts from all stakeholders – government agencies, EV manufacturers, power companies, and technology providers. Standardizing charging technologies, sharing investment costs, and ensuring seamless customer experiences will be key to boosting consumer confidence.

 

EV vs. Traditional Transport: A Shifting Paradigm

The comparison between EVs and traditional fossil fuel-powered vehicles reveals compelling advantages for electric mobility:

  • Environmental Impact: This is arguably the most significant benefit. EVs produce zero tailpipe emissions, directly contributing to cleaner air in our densely populated cities. This is vital for Bangladesh, which has consistently ranked high in air pollution indices. While the energy used to charge EVs needs to be considered (the carbon intensity of the grid), the overall lifetime emissions are significantly lower than conventional vehicles, especially as Bangladesh invests more in renewable energy sources.
  • Running Costs: Electricity is generally cheaper than gasoline or diesel in Bangladesh. This translates to substantial savings on fuel costs for EV owners. Furthermore, EVs have fewer moving parts, leading to lower maintenance costs and less frequent servicing.
  • Reduced Import Dependency: Shifting to EVs reduces Bangladesh’s reliance on imported fossil fuels, bolstering energy security and saving valuable foreign exchange reserves. In FY 2022-23, Bangladesh spent over $7 billion on fuel imports.
  • Noise Pollution: EVs operate much more quietly than traditional vehicles, contributing to a significant reduction in noise pollution, particularly in urban areas.

However, traditional vehicles currently hold an advantage in terms of initial purchase price, widespread availability of fuel stations, and a long-established repair and maintenance ecosystem.

The Road Ahead: Future of EVs in Bangladesh

The future of EVs in Bangladesh is undeniably promising, yet contingent on overcoming several hurdles. The government’s continued commitment to supportive policies, including tax incentives and reduced import duties on EV components and complete vehicles, will be crucial. Automakers argue that if locally manufactured units face the same duty as imported ones, investment in domestic factories will cease, putting the national 2030 EV penetration goal at risk. They suggest that beyond duty reductions, the government should consider lower registration costs for green vehicles and acknowledge that EVs cost more at the factory level, warranting comparatively lower duties to achieve national green mobility goals. Efforts to incentivize local assembly and manufacturing, which could reduce unit prices by up to 20% for hybrid cars, are vital for making EVs more affordable for a wider demographic.

Beyond policy, innovation in battery technology to improve range and reduce costs, coupled with robust research and development, will play a significant role. Public awareness campaigns are also essential to educate consumers about the benefits of EVs and address misconceptions. The integration of smart charging solutions and potentially artificial intelligence could further enhance the user experience and optimize energy consumption.

 

Adding Value: Life and Economy

The widespread adoption of EVs in Bangladesh can bring about transformative value:

  • Improved Public Health: Cleaner air from zero tailpipe emissions will lead to a healthier population, reducing respiratory illnesses and improving overall quality of life, especially in urban centers.
  • Economic Growth and Job Creation: The burgeoning EV sector will create new direct and indirect employment opportunities in manufacturing, assembly, battery production, charging station installation and maintenance, and related services like software development. Investing in EV infrastructure also stimulates investment in grid modernization and renewable energy integration.
  • Sustainable Transportation System: EVs are a cornerstone of a sustainable transportation system, contributing to Bangladesh’s long-term environmental goals and aligning with global efforts to combat climate change.
  • Financial Savings for Individuals: Lower running and maintenance costs offer direct financial relief to commuters and businesses, making transportation more affordable.

 

Environmental Stewardship

The environmental benefits of EVs are paramount for Bangladesh. By significantly reducing greenhouse gas emissions and harmful pollutants like nitrogen oxides (NOx) and particulate matter (PM), EVs can drastically improve air quality. This directly addresses the alarming levels of air pollution in Bangladeshi cities. Furthermore, the shift away from fossil fuels promotes energy independence and paves the way for a cleaner, greener energy mix, especially with the integration of renewable energy sources for charging stations.

 

Bangladesh vs. Neighbors: A Comparative Glimpse

Compared to its neighbors, Bangladesh’s EV market is still in a nascent stage. Countries like India have made significant strides in EV adoption, particularly in the two and three-wheeler segments, driven by strong government incentives for local production and a more developed charging infrastructure. India’s market for electric scooters and motorcycles, for example, is booming, with sales exceeding 547,000 units in the first five months of 2025. This growth is largely due to sustained government incentives.

Pakistan is also seeing an acceleration in its EV segment, though the two-wheeler market generally leads. Sri Lanka, too, is making efforts to unblock its EV market with supportive policies. While Bangladesh has initiated policies and seen a rise in electric three-wheelers, the electric car market is still catching up. The higher initial cost of EVs, compounded by significant import duties (around 89% for imported electric cars), remains a barrier compared to some neighboring countries which offer more aggressive tax breaks and even cash incentives.

However, Bangladesh’s recent push for local manufacturing and reduced duties on locally produced EVs signals a strong intent to bridge this gap. The lessons learned from the success of localizing fossil fuel-powered vehicles can be applied to accelerate EV adoption.

In conclusion, the electric vehicle market in Bangladesh is at a pivotal juncture. While challenges related to infrastructure, affordability, and awareness persist, the immense potential for environmental benefits, economic growth, and improved quality of life is undeniable. With continued strategic policy interventions, robust infrastructure development, and increased public-private partnerships, Bangladesh is well-positioned to accelerate its journey towards a cleaner, more sustainable, and electric future. The hum of electric vehicles is not just a sound; it’s the sound of progress.

 

 

C. Basu.

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