Bangladesh targets electric vehicle boom with 30% adoption goal by 2030
Bangladesh plans tax incentives, charging infrastructure and local manufacturing under new policy aimed at cutting emissions and reducing reliance on imported fossil fuels
DHAKA, Bangladesh (MNTV) — Bangladesh is accelerating its transition toward electric mobility, unveiling plans to make electric vehicles account for 30% of all transport by 2030 as the country seeks to reduce greenhouse gas emissions, curb dependence on imported fuel and establish a domestic electric vehicle manufacturing industry.
The target is outlined in the draft Electric Vehicle Industry Development Policy 2026, which was discussed during a stakeholder consultation organized by the Ministry of Industries and German development agency GIZ Bangladesh.
Officials said the proposed policy is intended to create the legal, industrial and financial framework needed to expand electric vehicle adoption while positioning Bangladesh as a regional manufacturing hub.
The initiative comes as Bangladesh, like many developing economies, faces mounting pressure to decarbonize its transport sector, which remains heavily dependent on fossil fuels. Road transport accounts for roughly 81% of emissions from the country’s transportation sector, making electrification a key component of its climate strategy.
Beyond reducing emissions, the government sees the transition as an industrial opportunity. Officials said Bangladesh aims to move beyond importing electric vehicles by encouraging local assembly and eventually manufacturing, allowing domestic companies to participate in global electric vehicle supply chains.
The draft policy proposes a range of fiscal incentives designed to attract investment. Imported electric vehicles brought in as fully assembled units would face a total tax incidence of 37% through 2030, while vehicles imported in completely knocked-down form for local assembly would receive significantly lower taxation until 2035 to encourage domestic production.
The proposal also includes a 10-year income tax exemption for companies establishing electric vehicle charging stations, part of a broader effort to expand charging infrastructure across the country and reduce barriers to adoption.
Officials said Bangladesh’s electricity grid has sufficient capacity to support a large-scale shift toward electric mobility, although electricity generated from low-carbon sources accounted for only about 2% of national power generation in 2025.
The transition would rely on targeted grid upgrades, smart charging systems and the gradual deployment of smart grid technologies to maintain network stability as demand grows.
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