Dhaka:Electric cars are becoming increasingly popular in Bangladesh as consumers seek environmentally friendly and cost-effective alternatives. This shift is driven by a combination of tariff concessions, strategic policy measures, and infrastructure development that have made electric vehicles (EVs) more attractive to private buyers.
According to Bangladesh Sangbad Sangstha, the government has revised the tariff structure to promote the adoption of environmentally friendly vehicles while discouraging the use of polluting, fuel-powered cars. Import duties for electric cars are now determined based on assessable value rather than engine displacement. For example, the tax incidence on electric cars priced up to US$25,000 has been reduced from 93% to 64%, while those priced between US$25,000 and US$50,000 now face an 80% tax rate.
Moreover, incentives for EV charging infrastructure have been introduced, with import duties on electric vehicle chargers and charging station equipment reduced to zero. In contrast, the tax incidence on conventional fuel-powered cars with engine capacities of 1,200cc to 1,600cc has increased, making electric cars a more attractive option in the domestic market.
Industry experts highlight that electric cars are cheaper to operate compared to conventional vehicles, especially amid fluctuating international oil prices. Running a conventional car costs approximately Tk 12 to Tk 15 per kilometer, whereas an electric car charged at home costs only Tk 1.50 to Tk 2.50 per kilometer. Electric cars also have fewer moving parts, reducing maintenance costs.
International brands such as BYD, Changan Deepal, MG, Audi, and BMW are selling electric vehicles in Bangladesh through authorized distributors. These vehicles come with warranties for high-voltage lithium batteries and electric motors, further boosting consumer confidence.
The government is also promoting the use of electric vehicles in the public sector by adopting a green procurement policy, requiring at least 20% to 30% of new vehicles purchased by government bodies to be electric. This is expected to reduce fossil fuel consumption and lower government fuel expenditures.
To ensure battery safety and durability, the use of harmful lead-acid batteries in passenger vehicles has been banned, with a mandate for international-standard lithium-ion or lithium iron phosphate batteries. Plans are also underway to establish battery recycling and disposal centers to manage end-of-life batteries safely.
Charging infrastructure challenges are being addressed by updating building regulations to include EV-compatible parking facilities in new constructions. Furthermore, the government aims to establish 1,200 commercial fast-charging stations nationwide by 2030.
A joint economic assessment indicates that each private electric car on the road prevents an average of 4.6 tonnes of carbon dioxide emissions annually, contributing to improved air quality and reduced noise pollution in major cities.
The government's strategic roadmap targets making at least 30% of vehicles in the country electric by 2030, potentially reducing fuel imports and saving foreign exchange.