Bangladesh is moving to establish itself as an electric vehicle (EV) manufacturing nation through a comprehensive industry
policy aimed at boosting local production, attracting investment and accelerating the country's transition to sustainable transport.
The initiative was highlighted at a stakeholder consultation on the proposed Electric Vehicle Industry Development Policy 2026, jointly organised by the
Ministry of Industries and GIZ Bangladesh in the city on Thursday, said a press release.
Presiding over the consultation, Industries Secretary Abdun Naser Khan said Bangladesh must prepare now to capitalize on the rapidly expanding global EV market.
"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," he added.
The consultation focused on developing an industrial and regulatory framework to support the government's target of achieving 30 percent EV penetration across transport modes by 2030, in line with the Electric Motor Registration and Operation Guideline 2023.
Officials said the proposed policy seeks to create a formal, standards-compliant EV ecosystem through stronger legal, institutional and
administrative frameworks while promoting domestic manufacturing and assembly.
As part of the proposed incentives, the Total Tax Incidence (TTI) on imported Completely Built-Up (CBU) electric motorcars will remain at 37 percent until
2030. The TTI on all categories of Completely Knocked-Down (CKD) EVs will be fixed at 15.25 percent until 2035 to encourage local assembly and manufacturing.
The policy also proposes a 10-year income tax exemption for institutions establishing EV charging stations to accelerate the expansion of charging infrastructure.
Representatives of the German Embassy and GIZ Bangladesh reaffirmed Germany's support for Bangladesh's transition to sustainable mobility through the
Transition to Sustainable e-Mobility (Trans2SMo) project, which is providing technical assistance to the Ministry of Industries in formulating the policy.
The consultation also reviewed the country's power sector preparedness for increased EV adoption. Participants were informed that the national power
grid would be able to accommodate rising electricity demand through targeted grid planning, smart charging systems and gradual deployment of smart grid
technologies.
Officials from the Ministry of Industries said the Power Division and the National Board of Revenue are working on complementary measures to encourage public and private investment in EV infrastructure and manufacturing.
Additional Secretary (Policy, Law and International Cooperation) AKM Benjamin Riazi and Additional Secretary (Administration) Md. Nuruzzaman also addressed
the workshop, which was attended by representatives from government agencies, the automotive industry, climate experts and international development partners.
