EVs could cut transport costs by 75%, but structural barriers remain: DCCI
The government aims to ensure that 30% of vehicles in the public and autonomous sectors are electric by 2030
Electric vehicles (EVs) can reduce transport operating costs by up to 75% compared with conventional fossil fuel-powered vehicles, but Bangladesh's transition to electric mobility remains constrained by persistent electricity shortages, inadequate charging infrastructure and the absence of a coordinated policy framework, according to a study presented by the Dhaka Chamber of Commerce and Industry (DCCI).
The findings were unveiled today (27 June) at a seminar titled "The Electric Vehicle (EV): Challenges and Prospects in Bangladesh," jointly organised by DCCI and the Bangladesh Sustainable and Renewable Energy Association (BSREA).
Presenting the keynote paper, DCCI President Taskeen Ahmed said Bangladesh has introduced a number of fiscal incentives to promote EV adoption, but major structural bottlenecks continue to discourage investment and consumer uptake.
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"Reliable electricity supply, a nationwide charging network, battery management systems, technical standards and greater private sector participation are essential to unlock the industry's potential," he said.
According to the paper, Bangladesh has only 669 registered electric vehicles, excluding electric three-wheelers, out of a total registered vehicle fleet of 6.72 million.
In contrast, an estimated six million locally manufactured electric three-wheelers are already operating across the country, mostly outside the formal registration system.
The government aims to ensure that 30% of vehicles in the public and autonomous sectors are electric by 2030, but the current pace suggests substantial policy and infrastructure gaps remain.
The study estimates that EVs cost Tk2.8-3.8 per kilometre to operate, compared with Tk11-14 per kilometre for petrol and diesel vehicles.
Maintenance costs are also 30-50% lower, making EVs economically attractive over the long term despite their higher upfront prices.
However, DCCI identified six major barriers to EV adoption: inadequate charging infrastructure, high purchase costs, insufficient bus depots, weak battery safety and recycling systems, uncertain investment payback periods and, most importantly, Bangladesh's ongoing energy crisis.
The paper noted that with national electricity demand hovering around 17,000 megawatts, persistent power shortages are already forcing many industries to operate at nearly half their capacity, raising concerns over the country's ability to support large-scale EV charging.
Although recent budgets have introduced several incentives, including reducing import duty on EV chargers from 39.75% to 1%, lowering advance income tax on EV registration, increasing auto loan limits for electric and hybrid vehicles to Tk80 lakh, and extending VAT exemptions on locally assembled EVs until 2031, industry leaders believe fiscal incentives alone will not be enough.
Drawing lessons from global experience, the paper cited Norway, where EVs account for 97.4% of new vehicle sales, attributing its success to long-term tax incentives, toll exemptions and widespread use of renewable energy.
China and India were also highlighted for prioritising the electrification of two- and three-wheelers before expanding to passenger cars and commercial vehicles.
To accelerate adoption, DCCI recommended a phased national roadmap centred on local manufacturing of two- and three-wheelers, deployment of 300-500 electric buses in Dhaka and Chattogram on a pilot basis, standardised charging infrastructure, EV-ready building codes and a nationwide charging station rollout integrated with urban planning.
The chamber also noted that the government is formulating a National Energy Storage Roadmap to support renewable energy integration and EV battery systems.
Calls for coordinated policy
Speaking as a chief guest, Bangladesh Energy and Power Research Council (BEPRC) Chairman Mohammad Wahid Hossain stressed that uninterrupted electricity supply is the single most important prerequisite for EV adoption.
He also proposed establishing a dedicated inter-agency coordination body for the EV sector, noting that multiple government agencies are currently involved in policymaking and implementation.
Industries Secretary Abdun Naser Khan said the government has already prepared a draft EV policy following consultations with relevant ministries and stakeholders.
"The objective is to reduce dependence on imported fossil fuels while strengthening the country's energy security. A realistic and forward-looking EV policy will be finalised after incorporating stakeholders' feedback," he said.
SREDA Director Md Aminur Rahman said the authority has so far approved 32 EV charging stations, of which nine are already operational, while emphasising the importance of quality standards for both charging infrastructure and imported EVs.
