The government is preparing a comprehensive policy to develop Bangladesh’s electric vehicle (EV) industry, aiming to position the country as an EV manufacturing hub rather than merely an importer, officials said on Wednesday.
The proposed Electric Vehicle Industry Development Policy 2026, now under consultation, includes a package of fiscal incentives designed to encourage local assembly, manufacturing and charging infrastructure as Bangladesh seeks to achieve 30 per cent EV penetration across transport modes by 2030.
The policy was discussed at a stakeholder consultation workshop organised by the Ministry of Industries in collaboration with GIZ Bangladesh, according to a release.
Speaking at the event, Industries Secretary Abdun Naser Khan said Bangladesh must prepare now to secure a place in the global electric vehicle value chain.
“If Bangladesh fails to prepare adequately today, we will not only miss out on an emerging industrial sector, but also risk falling behind in the Global Value Chain,” he said.
“Our target is not merely to become an importer of electric vehicles. Our ultimate goal is to establish Bangladesh as an EV manufacturing nation.”
The proposed policy offers preferential tax treatment to promote domestic production. Under the draft framework, the total tax incidence on imported completely built-up (CBU) electric cars would be fixed at 37 percent until 2030, while electric vehicles imported in completely knocked-down (CKD) form for local assembly would face a tax incidence of 15.25 percent until 2035.
The draft also proposes a 10-year income tax exemption for businesses establishing EV charging stations to encourage investment in charging infrastructure.
Officials said the policy is intended to support the government’s target, set under the Electric Motor Registration and Operation Guideline 2023, of increasing electric vehicle use while reducing emissions from the transport sector.
Road transport accounts for around 81 percent of Bangladesh’s transport-related greenhouse gas emissions, making the shift to electric mobility a key environmental priority, according to the ministry.
Addressing concerns over electricity demand, officials said Bangladesh’s power grid would be able to accommodate growing EV adoption through improved grid planning, smart charging systems and the gradual deployment of smart-grid technologies.
Representatives of the German Embassy and GIZ Bangladesh reaffirmed Germany’s support for Bangladesh’s transition to sustainable transport through the Transition to Sustainable E-Mobility (Trans2SMo) project, which is providing technical assistance to the Ministry of Industries in preparing the policy.
GIZ has also engaged national and international experts to review the draft policy and recommend improvements to strengthen the legal, institutional and regulatory framework for the emerging EV sector.
Officials said the Power Division and the National Board of Revenue are working on complementary measures to encourage both public and private investment in electric mobility and supporting infrastructure.
Officials from the Ministry of Industries, the Power Division, the Road Transport and Highways Division, the Bangladesh Road Transport Authority (BRTA), the National Board of Revenue, local government agencies, industry leaders, climate experts and development partners attended the event.