Bangladesh is changing the market by favouring electric cars.

New electric buses and trucks will benefit from reduced VAT and complete tax exemptions, while a proposed Electric Vehicle Industry Development Policy 2025 aims to foster local manufacturing. This includes a 1% supplementary duty on raw materials and income tax exemptions until 2040. The policy proposes substantial tax reductions for locally manufactured vehicles compared to imported ones, alongside increased bank loan limits for EV purchases. Despite initial slow growth, registrations of electric vehicles have risen significantly, with BYD leading the market. Large industrial groups are investing in EV manufacturing, although limited charging infrastructure remains a challenge, with only 14 public charging stations in place. Plans are underway to enhance charging networks to support the growing EV market.