EV industry policy likely to be finalised in this year: Industries ministry

The long-awaited Electric Vehicle Industry Development Policy will be finalised within this year as the industries ministry is working to complete its draft within the next three months, according to a senior ministry official.

"The industries minister has instructed us to finalise the EV Industry Development Policy in 2026. The policy was originally scheduled to be completed in 2023-24, but it was not. We now aim to finalise it in the next three months," Md Nuruzzaman, additional secretary (administration) of the ministry, said at a stakeholder consultation workshop at a hotel in Dhaka today (9 July).

He said the ministry is leading the policy formulation process, but its implementation will require coordinated efforts from all relevant ministries, agencies, and private-sector stakeholders.

The proposed policy is intended to help achieve the government's target of 30% EV penetration across transport modes by 2030 under the Electric Motor Registration and Operation Guideline 2023, Nuruzzaman said. 

The workshop, jointly organised by the ministry and GIZ Bangladesh, brought together policymakers, industry representatives, development partners, and climate experts to discuss the draft policy and the roadmap for developing Bangladesh's EV ecosystem.

Industries Secretary Abdun Naser Khan, who chaired the event, said Bangladesh must prepare now to avoid missing out on the rapidly expanding global electric vehicle 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 said. 

Mark Gombert, the country director of GIZ Bangladesh, said Bangladesh has an opportunity to build a competitive and sustainable electric mobility industry through coordinated policymaking, investment and public-private collaboration.

He reaffirmed Germany's continued support for Bangladesh's transition to sustainable mobility through GIZ's technical and advisory assistance to the ministry.

Officials at the workshop said road transport is responsible for around 81% of emissions from the transport sector, making the transition to electric mobility a key component of the country's climate and industrial strategies.

The participants said that Bangladesh's electricity system would be able to accommodate rising EV demand through improved grid planning, smart charging protocols, and the gradual deployment of smart grid technologies.

The draft policy proposes a range of fiscal incentives to encourage local manufacturing and infrastructure investment.

Under the proposal, the total tax incidence on completely built-up imported electric passenger vehicles will be fixed at 37% until 2030, while EVs imported in completely knocked-down condition will face a total tax incidence of 15.25% until 2035 to promote local assembly and manufacturing.

The policy also proposes a 10-year income tax exemption for businesses establishing EV charging stations as part of efforts to accelerate charging infrastructure nationwide.

Officials said the ministry will continue working with the Power Division, Road Transport and Highways Division, Bangladesh Road Transport Authority, National Board of Revenue, Local Government Division, and other stakeholders before finalising the policy later this year.