Thinking of buying a car – why not EV?

Infograph: TBS

Every car bought today will shape Bangladesh's roads for the next decade or more. The question is whether it will deepen the city's toxic gridlock and choking air or help drive the transition to a cleaner future.

For Dhaka, ranked the world's third least livable city, the stakes are particularly high. Despite the metro rail and elevated expressway, traffic congestion remains relentless, exhaust fumes continue to cloud the air and long queues at fuel stations are a now familiar sight.

Against this backdrop, electric vehicles (EVs) are moving from a niche technology to a practical option for many buyers around the world.

With no tailpipe emissions, lower running costs and less reliance on imported fuel, they offer a different way of thinking about personal transport.

Government incentives and growing public interest are helping to accelerate the shift.

But whether Bangladesh's roads become cleaner in the years ahead will depend not only on policy and charging infrastructure ­­– it will also be shaped by the decisions people make when buying their next car.

What a car actually costs over time

The debate over the cost of owning and operating petrol cars versus EVs has become a decisive factor in consumers' purchasing decisions.

BYD Bangladesh, who sold more than 1,000 new energy vehicles in the country, estimates that an electric car costs around Tk2.5 per kilometer to run, compared with around Tk15-16 per kilometer for a fuel-powered vehicle.

That is, a driver covering 10,000 kilometers annually would be looking at roughly Tk25,000 in electricity as against Tk150,000 or more in fuel. This shows a possibility to offset an EV's higher purchase price within a few years of ownership.

According to the International Energy Agency, EVs have become more affordable over the past decade, driven by lower battery prices, extensive model choices, government support, and expanding charging networks.

However, the decision comes down to a trade-off: lower upfront costs with a fuel-powered vehicle, or a higher initial price for an EV that offers lower operating costs over time.

The environmental case

World Health Organization (WHO) notes that transport is a vital source of global air pollution and generates the fourth largest share of greenhouse gas emissions.

Dhaka is repeatedly ranked among the world's most polluted cities. While multiple sources contribute to the city's poor air quality, emissions from fuel-powered vehicles remain a major factor.

Expanding the use of electric vehicles offers a practical way to reduce both carbon footprints and air pollution, supporting Bangladesh's Sustainable Development Goals (SDGs) and climate commitments under the Paris Agreement.

Bangladesh's EV ambition

In FY27 budget, the government eased the tax burden on EVs and plug-in hybrids to as low as 64%, while raised taxes on internal combustion engine (ICE) vehicles from 132.4% to 155.8%.

The government also granted full import duty exemptions for EV charging equipment, down from a 39.75% duty a year earlier.

Now let's talk about financial access.

The central bank issued a circular on May this year, stating that banks would allow to provide auto loans of up to Tk80 lakh per individual, including insurance coverage, for purchasing electric and hybrid vehicles.

Moreover, the biggest boost expects from the private sector, as more than Tk4,000 crore in planned investments for EV manufacturing, assembly and charging infrastructure following the government's policy support, according to a TBS report.

However, the EV ecosystem still has room for development, which may make some buyers reconsider an EV purchase.

With only 14 EV charging stations nationwide, limited battery replacement and disposal facilities, a lack of spare parts and skilled technicians, Bangladesh faces major barriers to widespread EV adoption.

Against this backdrop, the Road Transport and Highways Division is formulating a Tk25.35 crore project, including Tk23 crore in UNDP funding, to expand EV charging infrastructure and train a skilled workforce.

Meanwhile, The BRTC also plans to acquire 400 electric buses under the proposed 'Bangladesh Clean Air' Project, for which the World Bank has offered a $300 million loan, according to another TBS report.

Effective implementation will be key to achieving the government's 2030 target of 30% EV penetration and 1,200 charging stations.

The global shift to EVs

Global electric car sales surpassed 20 million in 2025, up 20% from 2024, with one in four new cars sold worldwide being electric, according to the International Energy Agency's Global EV Outlook 2026.

The report estimates that roughly 5% of the global car fleet is now electric, displacing around 1.2 million barrels of oil per day.

There are three major electric vehicle (EV) markets: China, Europe, and the United States. China remained the largest global EV market in 2025, while Europe's EV sales rebounded 30% to over 4 million following tighter EU CO₂ standards. In the US, EV sales share remained stable just below 10%, due to multiple policy changes.

Countries across Latin America, Asia Pacific and Middle East have now achieved an electric car sales share above 10%, as mentioned in the report.

Fast-growing EV markets worldwide can offer a useful roadmap for Bangladesh's EV transition.

Why China leads the EV market

China played a dominant role in the global EV market in 2025, backed by strong government incentives.

Under its vehicle trade-in scheme, buyers granted a subsidy of CNY20,000 ($2,750) for replacing old cars with a new EV, compared with CNY15,000 ($2,050) for a new conventional vehicle, encouraging EV adoption.

Despite a sales dip after a temporary suspension of the scheme, demand recovered quickly. China sold more than 13 million EVs—around 6 out of ten cars sold globally and continued to drive worldwide adoption through exports of cost-competitive electric vehicles.

Making the EV decision

Whether buying an EV makes financial sense depends on an individual's driving habits, annual mileage, access to charging, and intended ownership period.

For many Bangladeshis, a petrol-powered car will remain the more practical choice today. However, as charging infrastructure expands, battery technology improves and government support strengthens the EV ecosystem, electric vehicles are likely to become more cost-effective.

The real question may no longer be whether EVs are the future, but whether buying another fuel-powered car today means missing out on that future.