Dhaka, the capital city of Bangladesh, is one of the most densely populated cities in the world. With a population of over 21 million, the city faces a number of challenges, including air pollution, traffic congestion, and a lack of reliable public transportation. In recent years, electric vehicles (EVs) have been touted as a potential solution to these issues, offering a cleaner and more efficient alternative to traditional gasoline-powered vehicles.
The adoption of electric vehicles in Dhaka is still in its early stages, with only a small number of EVs currently on the road. There are only a few privately owned Teslas, but until now, there were no EV categories for registration with the Bangladesh Road Transport Authority (BRTA).
Audi Bangladesh, however, just launched their e-tron electric SUV in the country and became the first automotive brand in Bangladesh to officially launch Battery Electric Vehicles (BEV) and the first manufacturer to officially register electric vehicles under the EV category with BRTA.
One of the biggest advantages of EVs is their low emissions. The electric motors in EVs produce zero emissions, which makes them an attractive option for cities like Dhaka that are plagued by air pollution.
According to a study by the World Health Organization, air pollution in Dhaka is responsible for over 12,000 deaths per year, making it a major public health concern. By switching to EVs, the city could significantly reduce air pollution and improve the health of its residents.
Another advantage of EVs is their efficiency. Electric motors are more efficient than internal combustion engines, meaning that EVs can travel further on the same amount of energy. This makes them well-suited for the congested streets of Dhaka, where traffic is often slow-moving and gasoline-powered vehicles consume a lot of fuel. Additionally, EVs can be charged overnight, which means that they are ready to go in the morning without the need to stop at a gas station.
However, there are a number of challenges that need to be overcome in order for EVs to become a viable option for the people of Dhaka. One of the biggest challenges is the lack of charging infrastructure.
Currently, there are very no public charging stations in Dhaka, which makes it difficult for EV owners to charge their vehicles. There were only 14 EV charging stations with a combined capacity of 278 kW in the entire nation as of December 2020.
Commercial DC Fast Charging has not yet been made available in Bangladesh. Residential charging arrangements are now used to manage the small number of cars that are currently in use.
Although it is possible to extend high-voltage electrical lines into homes for EV charging, users are still responsible for the cost of installing the line. Additionally, the cost of the consumed electricity is billed at commercial rates, which are significantly higher than residential rates.
Another challenge is the high cost of EVs. Currently, EVs are more expensive than traditional gasoline-powered vehicles, which makes them out of reach for many people in Dhaka. This is partly due to the high cost of batteries, which make up a significant portion of the cost of an EV. However, as battery technology improves and economies of scale are achieved, the cost of EVs is likely to come down, making them more affordable for the people of Dhaka.
Despite these challenges, there are a number of initiatives underway in Dhaka that are aimed at promoting the adoption of EVs. For example, A new automobile policy recently developed by the Bangladeshi government aims to better integrate eco-friendly vehicles into the system. By 2030, the government wants to see at least 15% of all registered vehicles be electric vehicles.
A tax break or holiday is also suggested in the Draft Automobile Industry Development Policy-2020 for investments made in energy-efficient vehicle assembly facilities (EEV).
As for manufacturers, Walton has recently unveiled their e-bike lineup and is also possibly working on introducing electric city buses. In addition to Walton, a few other regional producers are preparing to sell locally assembled two-wheeler EVs in the Bangladeshi market.
Omega Seiki, an Indian automaker, recently announced a 1 billion INR investment to establish EV manufacturing facilities in Bangladesh. Local automaker BDAuto plans to produce three-wheeler EVs for both domestic and international markets.
The prospects for electric vehicles in Dhaka are promising, and with the right policies and investments, they have the potential to make a significant impact on the city''s air quality, traffic congestion, and public health. It is important for the government and private sector to work together to overcome the challenges facing the adoption of EVs in Dhaka and to create a supportive environment for the growth of this industry. With the right approach, EVs can become a viable and sustainable transportation option for the people of Dhaka.
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Between 2011 and 2021, Bangladesh saw a growth rate of over 7 percent in the number of passenger cars. Data from the Bangladesh Road Transport Authority (BRTA) reveals that there are more than 400,000 registered passenger cars as of March 2023. Nearly half of these were registered in the last decade. The growth of the automobile industry in Bangladesh is largely due to increased purchasing power among customers. For many years, customers in Bangladesh preferred reconditioned Japanese domestic market (JDM) cars. The Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), reports that over 14,000 JDM cars were imported into Bangladesh in the 2021-22 fiscal year.
The duty structure for electric vehicle imports is yet to be finalized in Bangladesh. Currently, the total tariff and tax incidence on EV imports ranges from 85 to 96 percent. For instance, the base model of the Audi e-Tron EV is priced at $70,000 to $72,000. In Bangladesh, the starting price for this car is BDT 1.59 crore. After calculating the dollar exchange rate and various taxes like customs duty, regulatory duty, VAT, and advance income tax, the total tax incidence on this car is around 95 percent.
In January 2023, Audi established Bangladesh’s first EV charging station in Dhaka’s Tejgaon area. All types of electric vehicles can charge here. Apart from this, there are no other EV charging stations available yet in Bangladesh. The government has already finalized a policy for setting up charging stations, including initiatives for new charging stations and battery recycling facilities.
Private organizations can also set up charging stations as per the policy. Authorized EV dealers and importers provide support for home charging unit installation. Full electric cars can travel 300km on a single full charge. Dhaka, the world’s sixth largest city spanning 306 square kilometers, is 20-50 kilometers from Savar, Gazipur, Narayanganj, and Munshiganj. Given Dhaka’s traffic, regular commutes within these districts would allow most fully charged EVs to run for 3-4 days without recharging. This suggests that Dhaka is already prepared for customers to use EVs regularly.
Moreover, EVs can travel to faraway divisions or districts outside Dhaka with one charge. The distances from Dhaka to major cities in the divisions of Sylhet, Chittagong, Barisal, Rajshahi, Khulna, and Mymensingh range from 100-250 km – within the single charge range of most EVs. Nearly every EV maker provides a portable charger with the vehicle that customers can carry. This allows charging from a regular wall socket, available at homes, hotels, and more.
Portable chargers can do both level one and level two charging. Although level one is quite slow, level two can fully charge an EV in 8-10 hours. In other words, you can recharge via the portable charger when traveling outside Dhaka and return. In 2022, Bangladesh achieved 100% electricity coverage. The country has a power generation capacity of 25,000 MW, producing 12,000-14,000 MW daily as per demand. Electricity currently reaches every rural area and char region in Bangladesh. Therefore, it is possible to charge a car with a portable charger almost anywhere in the country.
Customers in Bangladesh are already accustomed to driving hybrid and plug-in hybrid vehicles, which switch between electric and fossil fuel modes. Although plug-in hybrids are not as common, their numbers are significant. Since most customers already use hybrids, transitioning to fully electric cars should not take long. The most convenient aspect of a fully electric vehicle is lower maintenance costs. Typically, fuel-dependent cars deliver 7-8 km per liter of octane. For a Dhaka family driving 50 km daily, their monthly average would be around 1500 km. They would spend 25,000-30,000 taka on fuel monthly.
Fuel-driven cars also require engine oil changes every 4,000-5,000 km. Apart from oil, regular maintenance and servicing involves replacing various components including brake pads. So for fuel-based vehicles, costs including fuel total 35,000-40,000 taka monthly. Meanwhile, an electric car needs 5-7 charges to travel 1500 km. EV battery capacity is usually 70-100 kWh; the Audi e-Tron’s is 71 kWh. As per Dhaka Power Distribution Company‘s current rates, its monthly charging cost would be 3,000-5,000 taka – much lower than fuel costs. Moreover, EVs do not need regular oil changes or maintenance like fuel-based cars. Brake pads and other components also require less replacement than internal combustion engine vehicles.
According to an IDLC report, the Bangladesh government is taking various steps to ensure widespread adoption of electric vehicles by 2030. The 2021 Automobile Industry Development Policy emphasizes increasing domestic EV production to reduce vehicle emissions. The government offers incentives to make Bangladesh an energy-efficient vehicle hub by 2030 through strategic investment, advanced technology introduction, and access to regional and global markets. It has announced a 10-year tax holiday for investing in energy-efficient vehicle assembly or manufacturing inside or outside economic zones. Other incentives include scrapping subsidies, interest waivers, temporary road tax waivers, minimum registration fees, charging station development, and battery recycling facilities.
The ‘National Energy Efficient Vehicle Production Fund’ supports this industry. EVs have circulated in Bangladesh for years through auto-rickshaws and easy bikes. Despite lacking proper charging infrastructure, they have reached cities, rural areas, and remote locations countrywide. With 100% electricity coverage, many charge EVs at home or in garages. People may take time adjusting to hybrid and plug-in hybrid cars, but not fully electric ones. Developing EV infrastructure will increase adoption.
However, installing proper city charging stations is challenging. Each EV takes 20-30 minutes to fully charge, requiring significant space. In crowded cities like Dhaka and Chittagong, finding room for stations will be difficult. Home, office, mall, and restaurant charging could reduce the need for urban stations. Highway stations would be profitable given the 100% electricity coverage. Bangladesh is relatively small, so inter-city distances are short compared to vast countries like the US, Australia, and Canada which require huge charging investments. The US has over 130,000 stations, with 14,000+ in California alone. Considering Bangladesh’s size, existing electrification, and early EV adoption, the country already seems largely prepared for mass EV uptake.
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