KATHMANDU: Bangladesh has introduced a new incentive package aimed at accelerating electric vehicle adoption and plug-in hybrid growth. The policy is expected to reduce EV prices and attract new investment into the sector, according to Nikkei Asia.
The government’s budget for the next fiscal year includes tax reductions for EV importers, manufacturers, and buyers. The package also supports machinery imports and charging infrastructure development.
Under the revised structure, import taxes on EVs will drop from about 93 percent to between 66 percent and 80 percent, depending on vehicle value. Vehicles above USD 50,000 will face higher rates. Internal combustion engine vehicles will see increased taxation.
Electric buses and trucks will receive tax exemptions except VAT until June 2030. Locally assembled EVs will benefit from a reduced 5 percent VAT, while additional incentives apply for higher local value addition.
The policy is expected to support Chinese EV makers, including BYD, which is expanding in emerging markets.
BYD distribution in Bangladesh is handled by CG Runner BD Ltd., a company associated with Nepal’s Chaudhary Group (CG) and Bangladesh’s Runner Group. The company is currently expanding its EV business footprint in the country.
CG Runner BD Ltd. plans to set up an EV assembly facility in Bhaluka, north of Dhaka. Assembly operations are expected to begin by mid-2027. The company plans phased investment of around USD 21.2 million and aims to introduce locally assembled EV models.
Bangladesh’s EV market remains at an early stage, with over 1,000 battery and plug-in hybrid vehicles estimated to have been sold since 2024.
Industry stakeholders expect stronger EV demand as fuel costs and energy security concerns push consumers towards alternative mobility. However, limited charging infrastructure remains a key barrier to wider adoption.
Automakers are also planning investments in charging networks as Bangladesh currently has a small number of public charging stations, alongside limited home charging facilities.
CG, a subsidiary of the Nepal-based multinational Chaudhary Group, runs BYD distribution across multiple countries through its automotive subsidiaries and partners. It also operates BYD dealerships in Sri Lanka (via John Keells CG Auto) and in select European markets such as the UK and Slovenia through CG Auto Global networks.
