A DCCI paper says electric vehicles could significantly reduce transport costs, but Bangladesh’s energy shortages, limited charging infrastructure, high upfront costs and policy gaps continue to impede widespread EV adoption.
Electric vehicles (EVs) could reduce transport running costs by up to 75 percent compared with conventional fuel-powered vehicles but Bangladesh’s transition to cleaner transport is being held back by major structural challenges including chronic electricity shortages and a lack of charging infrastructure, the Dhaka Chamber of Commerce and Industry (DCCI) said on Saturday.
The findings were presented by DCCI President Taskeen Ahmed during a seminar titled “The Electric Vehicle (EV): Challenges and Prospects in Bangladesh,” organised by the chamber in collaboration with the Bangladesh Sustainable and Renewable Energy Association (BSREA) at the DCCI Auditorium in Motijheel, Dhaka.
According to the paper, Bangladesh has only 669 registered EVs on its roads excluding electric three-wheelers despite having a total registered vehicle fleet of 67.24 lakh. This contrasts sharply with an estimated six million locally manufactured electric three-wheelers already operating across the country, most of which remain largely unregulated.
The government has set a target of achieving 30 percent EV adoption in the public and autonomous sectors by 2030.
The paper said EVs cost around Tk 2.8 to Tk 3.8 per kilometre to operate compared with Tk 11 to Tk 14 per kilometre for petrol and diesel vehicles. Maintenance costs are also estimated to be 30 to 50 percent lower than those of conventional vehicles.
However, the higher purchase price of EVs continues to discourage many potential buyers.
The presentation identified six major barriers slowing EV adoption. These include limited charging infrastructure with uneven access between urban and rural areas, high upfront vehicle costs, a severe shortage of depots with fewer than 30 state-run facilities serving more than 53,000 buses nationwide, an underdeveloped battery safety and recycling ecosystem, uncertain payback periods and the country’s ongoing energy crisis.
Bangladesh’s electricity demand currently stands at around 17,000 MW. Persistent power shortages are forcing industries to operate at roughly half their production capacity, making large-scale EV charging through the national grid a significant challenge, the paper said.
The study also highlighted a series of policy incentives introduced in recent national budgets to encourage EV adoption. These include reducing import duties on EV chargers from 39.75 percent to 1 percent, lowering advance income tax on EV registration from Tk 2,00,000 to between Tk 25,000 and Tk 1,00,000 depending on motor capacity, increasing auto loan limits for electric and hybrid vehicles from Tk 60 lakh to Tk 80 lakh and extending VAT exemptions for locally assembled EVs until June 2031.
Drawing on international examples, the paper pointed to Norway where EVs account for 97.4 percent of new car sales following years of tax exemptions, toll waivers and extensive use of renewable electricity.
It also cited China and India as successful examples of scaling up EV adoption by first focusing on electric two-wheelers and three-wheelers before expanding to larger vehicles.
To accelerate Bangladesh’s transition, the DCCI recommended a phased EV roadmap prioritising local manufacturing of two-wheelers and three-wheelers, pilot deployment of 300 to 500 electric buses in Dhaka and Chattogram, mandatory standardisation of charging equipment, integration of EV-ready facilities into building codes and the development of a centralised national charging network aligned with urban planning.
The paper also noted that a National Energy Storage Roadmap is currently being formulated to support clean energy expansion and EV battery systems.
