The government is set to introduce the Electric Vehicle (EV) Industry Development Policy 2025 this year, aiming to promote environmentally friendly transportation and accelerate industrial growth in Bangladesh.
The policy, being formulated by the Ministry of Industries, outlines a comprehensive framework to reduce carbon emissions, improve energy efficiency, and create new employment opportunities while transforming the EV sector into a sustainable and competitive industry.
According to officials, the draft policy has already been completed and published for stakeholder feedback. Sultana Yasmin, Joint Secretary of the Policy, Law, and International Cooperation wing of the ministry, said the policy is expected to be finalized within this year following consultations.
“The use of electric vehicles is expected to grow significantly in the coming years. This policy aims to enable domestic production of EVs and their components,” she said.
The proposed policy includes a range of fiscal incentives to attract investment in the EV sector. These include:
• Income tax exemptions for EV manufacturing enterprises until 2040
• Duty benefits for importing batteries and components
• Exemptions for the production of lead-acid and lithium-ion batteries
• Up to 50% reduction in vehicle registration fees
• Exemption of Advance Income Tax (AIT) until 2030
• Lower customs duties on imports
A 1% supplementary duty is proposed on the import of industrial raw materials and components used in EV manufacturing.
The policy highlights the urgent need to reduce emissions in the transport sector, a major contributor to global greenhouse gas emissions. It aims to significantly cut carbon emissions by 2030 and reduce reliance on fossil fuels by promoting electric mobility.
Bangladesh, being highly vulnerable to climate change, is prioritizing EV adoption as part of its broader environmental strategy.
The policy emphasizes:
• Expanding local EV and component manufacturing
• Developing export potential
• Promoting research and innovation
• Building a skilled workforce
It also proposes establishing research centers and integrating EV-related subjects into technical education to support long-term industry growth.
To support EV adoption, the government plans to:
• Develop nationwide charging infrastructure
• Encourage public and private investment in charging stations
• Promote renewable energy-powered charging systems
• Include EV charging facilities in new building designs
The policy also stresses safety standards, battery management, and compliance with international regulations.
Three-wheeled electric vehicles, commonly known as “easy bikes,” will be brought under formal registration by the Bangladesh Road Transport Authority (BRTA) after meeting required standards. Dealers and manufacturers will not be allowed to sell EVs without proper registration.
A high-powered “Electric Vehicle Industry Development Council” will be formed to oversee implementation, coordination, monitoring, and evaluation of the policy. Additional implementation and technical committees will also be established.
The policy sets a target that at least 30% of vehicles procured by government and semi-government entities will be electric by 2030.
Stakeholders believe that effective implementation of the policy could open new opportunities for environmental protection, energy efficiency, industrial development, and technological advancement—while strengthening Bangladesh’s position in the global electric vehicle market.
'Electric Vehicle Industry Development Policy' to Launch This Year
The government is formulating the 'Electric Vehicle Industry Development Policy 2025' to build an environmentally friendly transportation system and accelerate industrialization in the country. The Ministry of Industries is undertaking this task.
The policy outlines an integrated framework including reducing carbon emissions, saving energy and creating new employment opportunities. Additionally, it sets out a roadmap for transforming the electric vehicle (EV) industry into a sustainable and competitive sector.
To this end, the policy proposes imposing a 1% Supplementary Duty (SD) on the import of industrial raw materials and components for manufacturers of electric vehicles and their parts and granting income tax exemption to manufacturing enterprises at the import, local purchase and supply stages until 2040. Furthermore, tax exemptions are proposed for the production of lead batteries and lithium-ion batteries used in electric vehicles. The drafting work has already been completed.
Sultana Yasmin, Joint Secretary of the Policy, Law, and International Cooperation sub-division of the Ministry of Industries, told BSS that this policy will be finalized within this year.
"The use of electric vehicles is expected to increase in the country in the future. This policy is being formulated with the goal of enabling the domestic production of electric vehicles and their parts. A draft has already been prepared and published on the ministry's website for stakeholder feedback. The policy will be finalized soon after discussions with relevant stakeholders."
The policy states that reducing carbon emissions in the transport sector is crucial to combating global warming and climate change impacts. Currently, the transport sector is one of the world's leading sources of greenhouse gas emissions. In this context, emphasis is placed on increasing the use of electric vehicles as an alternative to fossil fuel-dependent vehicles.
According to the policy's vision, the electric vehicle industry in the country will be transformed into a robust and sustainable industry. Its mission is to ensure an eco-friendly transportation system by reducing dependence on fossil fuels. It sets a target of significantly reducing carbon emissions in the transport sector by 2030.
Simultaneously, emphasis is placed on increasing local EV production, creating export potential, and developing a skilled workforce. The policy further said, climate change is increasing the frequency of natural disasters globally, posing a major threat to vulnerable countries like Bangladesh. Significant carbon emissions from the transport sector are exacerbating this situation. Therefore, special importance is attached to the use of electric vehicles.
The objectives of the policy include local EV production and technology development, export diversification, employment generation, and reducing the use of fossil fuel-dependent vehicles.
Various tax benefits and incentives have been included in the policy to attract investment in the EV sector. These include- up to 50% reduction in EV registration fees; exemption of Advance Income Tax (AIT) until 2030; low customs duties on imports; income tax exemption for manufacturing enterprises until 2040; and duty benefits on battery and component imports.
Furthermore, emphasis is placed on strengthening local component manufacturing, research, and development activities. This will foster the growth of domestic industry and create new employment opportunities. Plans to enhance competitiveness in the international market are also included.
Initiatives will be taken to set up charging stations across the country to build supporting infrastructure for EV use. The public and private sectors will be encouraged in this regard, and charging facilities will be expanded using renewable energy. Plans also include incorporating EV charging facilities in new building constructions.
The policy emphasizes EV safety, battery management, and adherence to international standards. Vehicle registration, fitness, and quality control will follow existing laws and regulations. Additionally, the policy mentions that the country's vast number of three-wheeled electric vehicles (known as easy bikes) will be registered by BRTA after completing prescribed standards and testing.
Dealers, agents, importers, local manufacturers, and producers will not be allowed to hand over electric three-wheelers and motorcycles to buyers without registration.
The policy states that by 2030, at least 30% of vehicles purchased by government, semi-government, and autonomous bodies must include electric vehicles. A high-powered 'Electric Vehicle Industry Development Council' will be formed for the overall development of the EV industry. This council will oversee the implementation, coordination, monitoring, and evaluation of the policy.
Furthermore, an Implementation Committee and a Technical Committee will also be formed. The policy includes plans to establish research and innovation centers, develop skilled manpower, and include EV topics in technical education. This will help build a skilled human resource base in the long term.
Stakeholders believe that effective implementation of this policy will create new possibilities for environmental protection, energy savings, industrialization, and the use of modern technology in the country. At the same time, Bangladesh will be able to strengthen its position in the global electric vehicle market.
