Bangladesh lags in EV adoption despite global surge

Bangladesh is lagging in electric vehicle (EV) adoption even as global sales surge, with industry stakeholders calling for stronger policy support and incentives to accelerate the transition.

According to the International Energy Agency, EV sales crossed 20 million units in 2025, growing more than 20% year-on-year.

In China, EVs account for 12% of vehicle registrations and nearly half of car sales in the domestic market. The global leader in the EV industry, China, reduced fuel import costs by 10% last year.

India and Vietnam have rolled out aggressive incentives, including tax cuts, subsidies and local manufacturing support, to accelerate EV adoption and reduce oil dependency.

In Bangladesh, however, adoption remains slow. Data from the National Board of Revenue (NBR) show 178 EVs were imported in FY25 and 82 in the first half of FY26. 

A plan to procure 400 electric buses is yet to be implemented.

Industry stakeholders have broadly welcomed the commerce ministry’s proposal to lower customs duty and supplementary duty on electric buses, trucks, dumpers and excavators to levels below those applied to conventional fossil fuel-powered vehicles, but stressed that local manufacturing must be prioritised over imports.

Hafizur Rahman Khan, president of the Bangladesh Automobile Assemblers and Manufacturers Association, said, “The world is moving towards electric vehicles and Bangladesh must follow. But tax incentives should favour local production and assembly more than imports.”

He said several companies have already invested in EV assembly and manufacturing, often in partnership with global firms. 

“If we ensure policy stability and protect these investments, the sector can generate employment and build backward linkage industries,” he added.

Bangladesh Auto Industries Ltd, one of the country’s pioneering EV manufacturers, has completed construction of a factory on 100 acres in Chattogram’s National Special Economic Zone, with an investment of Tk1,440 crore. 

However, production has yet to begin due to delays in gas connections.

Managing Director Mir Masud Kabir said high duties on imported components, currently around 61%, are a major barrier. 

“To develop a competitive EV industry, duties on parts must be lower than those on fully built vehicles. Export incentives would also help attract foreign investment,” he said.

Meanwhile, Runner Automobiles Ltd has recently signed an agreement with China’s BYD to explore local assembly or production opportunities, signalling growing interest from global EV players.