PRITI Research & Consultancy Limited · February 2024
Business Feasibility Study
Electric Vehicle Industry in Bangladesh — A comprehensive analysis of market potential, policies, infrastructure, and financial viability
Introduction & Background
Transport is one of the vital aspects for the business world. The commercial vehicle market refers to vehicles used to transport goods and passengers or provide a service. Road transport is the most popular form of commercial transport in Bangladesh, carrying about 70% of passengers and cargo.
The global commercial vehicle market is projected to grow from $955.57 BN in 2022 to $1,712.44 BN by 2029, at a CAGR of 8.7%. The Asia Pacific market is set to experience the highest growth rate globally due to growth of mega-economics China & India.
Bangladesh is the 39th largest economy in nominal terms and 30th largest by purchasing power parity. The economy has grown at nearly 6% per year in the past decade. More than 15,000,000 Bangladeshis have moved out of poverty since 1992, creating a rising middle class with increasing purchasing power.
Global Electric Vehicle Market
The global EV market is growing exponentially. 6.60 million units sold in 2021 alone.
Global EV Sales by Region (Million Units)
Bangladesh Hybrid Car Import Growth
Electric Vehicles in Bangladesh
Bangladesh has moved one step forward with plans to introduce at least 30% plug-in EVs by 2030
EV Types Available
Battery Electric Vehicles (BEVs)
Fully electric, zero direct emissions. Examples: Tesla Model 3, Volkswagen ID.4, Kia EV6.
Plug-in Hybrid (PHEVs)
Both electric and combustion engine. Can operate in all-electric or hybrid mode.
Hybrid Electric (HEVs)
Cannot be charged externally. Batteries charged via regenerative braking. Toyota Aqua, Honda Grace.
Bangladesh EV Market Status
Bangladesh had only 14 EV charging stations in December 2020. The all-electric vehicle market is almost nonexistent, though nearly 4 million Easy Bikes (electric three-wheelers) run on streets.
The almost vacant market means first movers like Eco Bengal have massive opportunity to capture market share as government policies and consumer demand rapidly converge.
EV Policies in Bangladesh
Strong government support creating favorable conditions for EV industry growth
For local EV assembling and manufacturing with 30% locally sourced components
Reduced VAT and Import Duty on electric vehicle components
Road tax waiver and reduced registration fees for EVs
Government target to have 30% newly registered vehicles as EVs by 2030
Barriers & Challenges
Financial Analysis & Budget
Detailed breakdown of the EV Car Assembly Center project costs
Budget Distribution (BDT Million)
Cost Breakdown
Foreign Investment Benefits in Bangladesh
Bangladesh EV Charging Guidelines
Government framework for establishing EV charging infrastructure across Bangladesh
Phase 1 (1–3 Years)
Charging infrastructure in all divisional city centres and important highways. Priority on fast charging in CNG/Petrol refueling stations.
Phase 2 (3–5 Years)
Charging stations of at least 50 kW capacity within 100km of highways. Progressive EV procurement in government vehicle fleets.
Public Station Standards
DC Chargers: 50 kW (CCS/CHAdeMO). AC Charger: Type-2, 11 kW. Full-charge time: 20–30 minutes at DC stations.
Electricity Tariff
BERC tariff: 7.70 Tk./kWh energy charge + 40 Tk./KW/month demand charge. BREB installing solar-powered EV charging stations.