Bangladesh is implementing a strategy to modernise its transport sector through the introduction of electric buses, the development of a nationwide charging network and efforts to establish a domestic electric vehicle (EV) ecosystem supported by public and private investment.

According to Roads and Highways Secretary Dr Mohammed Ziaul Haque, the government's transport modernisation programme aims to create a cleaner, safer and more efficient transport system while reducing dependence on fossil fuels.

Government plans to deploy around 1,400 electric buses

The government has launched several initiatives expected to introduce approximately 1,400 electric buses into the country's public transport network.

A proposal to procure 500 electric buses has been submitted for financing, while an existing programme involving 300 electric buses supported by the Republic of Korea is being revised to increase vehicle numbers. In addition, two procurement packages worth BDT 4 billion (US$ 32.4 million) each have been included to support the acquisition of additional electric buses. The programme will also include a dedicated fleet for women passengers, with the number of buses expected to exceed the initial target of 100.

"Taken together, these initiatives will enable us to introduce around 1,400 electric buses into the country's public transport system," Dr Haque said.

The government expects commuters to begin seeing changes on selected routes by December or early next year, with an initial target of operating at least 200 electric buses. Separately, preparations are underway to introduce 400 electric buses in Dhaka to reduce air pollution and update public transport in the capital. Transport experts said the initiative's effectiveness will depend on adequate charging infrastructure and maintenance facilities.

EV industry expected to grow following policy incentives

Bangladesh's EV industry is expected to enter a new growth phase following incentives announced in the FY2026-27 budget and approximately BDT 40 billion in private-sector investment commitments.

Industry representatives said the latest budget has altered the investment environment through reduced import duties on EVs, tax incentives for local EV manufacturing, duty exemptions on charging equipment and fiscal incentives for charging-station operators.

The draft EV Industry Development Policy has also proposed a 10-year income tax exemption for charging-station businesses. The government aims to establish 1,200 commercial EV charging stations by 2030, with the Sustainable and Renewable Energy Development Authority (SREDA) responsible for preparing the regulatory framework and implementation guidelines.

SREDA Director Md Aminur Rahman said the agency has received numerous applications for commercial charging stations and is approving projects in phases following technical inspections.

More than BDT 40 billion in investment pipeline

Industry estimates indicate that more than BDT 40 billion in investments are being planned across vehicle manufacturing, assembly and charging infrastructure development.

Bangladesh Auto Industries Limited has announced an investment of BDT 15 billion to establish an EV manufacturing facility in Mirsarai while developing charging infrastructure. Nasir Group and Akij Motors have each announced investment plans worth BDT 5 billion, while Rancon Motors has committed BDT 3 billion for EV assembly operations and charging infrastructure.

Runner Automobiles, in partnership with Chinese EV manufacturer BYD, is implementing a phased BDT 2.6 billion investment programme focused on local EV manufacturing and charging infrastructure. PRAN-RFL and Walton Group have each allocated approximately BDT 2 billion for electric mobility projects, primarily focused on electric scooters and supporting infrastructure.

Additional companies, including TMSS, Progress Motors, Sena Hotel (Radisson Blu), Kazi LPG, Good Luck Filling Station and Isha Kha Group, have either secured approvals or are preparing investments in commercial charging stations.

Charging network expanding

According to SREDA, 32 commercial charging stations have received approval, although only nine are currently operational. Existing stations are located in Dhaka, Chattogram, Cox's Bazar and Cumilla. Thousands of home charging units have also been installed alongside newly sold EVs.

Rahman said commercial DC fast-charging stations have already been approved for Rancon Motors and Progress Motors in Dhaka, Kazi LPG and Sena Hotel in Chattogram, TMSS along the Bogura-Rajshahi corridor and Good Luck Filling Station in Rajshahi.

"We have guidelines covering land requirements, location, equipment quality, investment size and electricity quality," he said.

For comparison, India currently has 29,151 public EV charging stations, Nepal has around 400, while Pakistan has licensed more than 100 charging stations.

Power reliability remains a major challenge

Despite growing investor interest, industry representatives said a reliable electricity supply remains a major challenge facing the sector. Runner Automobiles Chairman Hafizur Rahman Khan said every BYD vehicle sold by the company includes a home charger that can operate using a standard household electricity connection.

"Commercial charging stations are a different story," he said. "They require high-quality, uninterrupted power supply, and that remains our biggest concern."

He explained that home charging generally takes between five and ten hours, whereas highway charging requires ultra-fast DC charging systems capable of charging vehicles within five to ten minutes.

"BYD already has that technology. But Bangladesh currently lacks both the quality electricity supply and the supporting infrastructure needed to deploy it on a large scale," he said.

According to Khan, a conventional DC fast-charging station requires an investment of approximately BDT 10 million to BDT 15 million, while ultra-fast charging facilities with dedicated substations and land acquisition can cost between BDT 30 million and BDT 50 million.

"After making such a large investment, operators will need years to attract enough customers to generate acceptable returns," he added.

Companies investing across the EV sector

Several companies are investing beyond vehicle sales and manufacturing to establish a broader EV ecosystem. Runner Automobiles has established branded charging points in Dhaka, Cumilla, Chattogram, Bogura and Cox's Bazar for BYD customers while expanding technician training programmes. The company stated that it has already sold more than 1,000 BYD vehicles in Bangladesh.

Samiul Hasan, Head of Marketing at Nasir Syntax Motors, said the company is investing in both vehicle manufacturing and charging infrastructure.

"We are investing across the entire ecosystem, including vehicle manufacturing and charging stations, because we believe the market will expand significantly," he said.

Bangladesh Auto Industries Managing Director Mir Masudul Karim said the company's locally manufactured EVs will offer driving ranges exceeding 450km on a full charge and support fast charging in approximately 30 minutes.

"We are supporting both home charging and commercial charging infrastructure alongside vehicle production," he said.

Sheetal Taslim, Country Lead for Marketing and Operations at Audi Bangladesh and Ekhon Charge, said the company has installed 150 home charging units and established five commercial charging stations nationwide. She added that Ekhon Charge has the capability to support charging-station deployment anywhere in the country.

EVs offer lower operating costs

Industry estimates indicate that a full highway charging session costs between BDT 308 and BDT 759, making electric driving approximately 70% cheaper per kilometre than operating a petrol-powered vehicle.

Industry stakeholders said the next stage of Bangladesh's EV transition will depend more on implementation than on investment announcements. Dhaka Chamber of Commerce and Industry (DCCI) President Taskeen Ahmed said approximately 6 million battery-powered three-wheelers are operating in Bangladesh, while only a few thousand electric passenger vehicles are officially registered.

"The actual number of EVs is much higher than official records. Without reliable data, planning and policymaking become difficult," he said.

Ahmed added that charging infrastructure, reliable electricity, common technical standards and investment-friendly policies remain important for accelerating EV adoption. Mohammad Wahid Hossain, Chairman of the Bangladesh Energy and Power Research Council, said an uninterrupted electricity supply will ultimately influence the industry's development.

"If EV adoption increases while electricity shortages persist, the sector cannot grow at the desired pace," he said, adding that Bangladesh also requires greater use of renewable energy and stronger coordination among government agencies.

Government exploring broader transport reforms

Beyond electric buses and EV infrastructure, the government is evaluating additional mass-transit options. Dr. Haque said BUET has been tasked with assessing the feasibility of monorail systems for routes where metro rail may not be the most suitable option. A presentation on the Bus Rapid Transit (BRT) system is also being prepared following consultations with transport experts and law-enforcement agencies.

He acknowledged that Bangladesh remains at an early stage of EV adoption and currently lacks sufficient local expertise in the sector. To encourage private-sector participation, the government is offering fiscal incentives, including reduced taxes for electric bus operators. However, many private operators are waiting to evaluate the performance of BRTC's initial electric bus fleet before making investment decisions.

Discussions are also underway with the finance ministry regarding subsidy mechanisms and fare structures aimed at balancing the higher costs of EV technology with affordable passenger fares. Dr. Haque added that the government will continue addressing broader transport issues, including the regulation of battery-powered three-wheelers and improved highway management, as part of its long-term transport strategy.