Bangladesh – for the first in the country’s history – is going to get a home-grown electric vehicle (EV) industry. Bangladesh Auto Industries Ltd plans to market the domestically produced EVs from March next year.
With an investment of Tk 1,400 crore, Bangladesh Auto Industries is working to establish an EV factory on a 100-acre plot of Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN), located in the Mirsarai area of Chattogram.
Ten banks – in two groups – are providing Tk 790 crore for the initiative, and the rest will be invested by entrepreneurs. The factory, when completed, will produce EV frames of different designs, battery, motor and chargers.
Construction of factory infrastructure has already been completed, and work to install machinery is now underway. Entrepreneurs are planning to introduce EVs to the domestic market by March next year.
Seventy-five per cent of the funds will be spent on making EV bodies, battery, motor and charger at the factory, while the remaining 25 per cent will be spent on importing vehicle blueprints.
The factory will conduct vehicle inspections, and then market the EVs. Entrepreneurs are also planning to build charging stations at petrol pumps across the country.
Bangladesh Auto Industries Ltd is a sister organisation of Mango Teleservices. The Business Post correspondent recently visited the under-construction factories at the BSMSN and met with A Mannan Khan, chairman of the company.
He said, “I have been involved in the tech sector for thirty years. Tech companies across the globe have taken the lead in EV production. This is why I became involved in this sector.
“Home-grown green cars are a demand of time. The existing automobile sector is gradually shrinking, and EV shares are growing due to the consideration for protecting the environment.”
Mannan studied computer engineering and telecommunications at Tianjin University in China. He started a tech business in Bangladesh after returning home in 1990.
Bangladesh Auto Industries Ltd will establish three factories at the BSMSN. One factory – costing Tk 550 crore – will produce vehicle frames for sedans, SUVs (sports utility vehicle), microbuses, trucks, covered vans, and buses.
State-owned bank Agrani, BDBL, financial institution BIFFL and private sector organisations Islami Bank and First Security Islami Bank have joined forces to invest Tk 240 crore in the abovementioned factory.
The second factory – named Bangladesh Lithium Battery Ltd and owned by Bangladesh Auto Industries – will produce batteries for the EVs – including two, three and four wheelers. The batteries can also be used for solar power, data centres, UPS, and BTS systems.
This factory will cost TK 750 crore. Of the figure, different banks are providing Tk 550 crore, and the rest will come from entrepreneurs.
Eastern Bank is leading a group of BDBL, Sonali, Rupali and Mercantile banks to invest TK 350 crore and Tk 200 crore in the first and second phase respectively.
The thirst factory, named Mango Technologies Ltd, will produce motors, control and charging systems. The factory will cost Tk 140 crore, and the money is coming from entrepreneurs. Machinery is being imported with support from Mutual Trust Bank.
Making EVs requires blueprints, and Bangladesh Auto Industries plans to import blueprints so that they can produce vehicles that can meet global standards.
Discussing funding for the project, Mannan said, “Across the globe, good banks come forward to fund projects such as these. The scenario is no different in Bangladesh. We have imported machineries for three projects so far, and installation will begin in October.
“Test production will begin in January. We have plans to introduce EVs in the Bangladeshi market next March.”
EV pricing model
Speaking about the EV pricing model, entrepreneurs say the electric vehicles produced by the Bangladesh Auto Industries Ltd will be our domestic brand. We will be able to produce 60,000 two-wheelers, 40,000 three-wheelers and 30,000 four wheelers annually.
This venture will provide employment for 1,500 people. After the project production capacity increases, the initiative will provide employment for 5,000 people.
The EVs will be easy to use, and connected to the internet. EV owners will be able to charge their vehicles at pumps, or at home. Prices will depend on a vehicle’s energy storage capacity.
A sedan car with a mileage of 250km per charge will cost Tk 12 lakh to Tk 13 lakh. Meanwhile, a sedan car with a mileage of 350km per charge will cost Tk 16 lakh to Tk 17 lakh.
A SUV or jeep with a mileage of 350km per charge will cost Tk 23 lakh to Tk 25 lakh. The same type of vehicle with a mileage of 400km will cost Tk 28 lakh – Tk 30 lakh.
A 7-seat microbus with a mileage of 250km per charge will cost Tk 20 lakh to Tk 22 lakh. The same type of vehicle with a mileage of 350km will cost Tk 25 lakh – Tk 26 lakh.
A three-wheeler will cost Tk 4 lakh to 5 lakh, which will travel up to 200km – 250 km per charge. Vans tricks and buses will cost between Tk 15 lakh to Tk 30 lakh.
The government has already formulated policies for introducing EVs in the local market, charging systems, and regulation. Entrepreneurs involved in the sector are getting tax exemptions.
It should be noted that till August this year, 34 electric vehicles were registered in the country, and all of those were imported. The first EV charging station in Bangladesh was installed by "Ekhon Charge" the same month.
