ELECTRIC VEHICLES POLICIES & CURRENT MARKET

• The Bangladeshi government is preparing an auto industry policy which will call for at least 15% of registered
vehicles to be powered by “environment-friendly electricity” in 2030.
• “The policy is providing special importance on the assembly and manufacture of environment-friendly electricity
run vehicles,” stated the Ministry of Industries in a draft Automobile Industry Development Policy-2020 which
focuses on electric vehicles (EVs).
• Currently Borak type electric three-wheeler are commonly used for last minute connectivity across Bangladesh.
• A rough estimate says that more than 0.5 million battery-run electric three-wheelers are operating across the
country.
• Local automobile company Bangladesh Auto Industries Ltd (BAIL) is all set to make electric vehicles with an initial
investment of $200 million.
• BAIL will manufacture two-wheelers, three-wheelers, sedan, hatchback and sport utility vehicle (SUV) and has
plans to produce pick-ups, mini-trucks and multipurpose vehicles.
 BANGLADESH-DEALERS

• Overall ~40k 3W were imported into Bangladesh from India in 2019-20

• Bajaj has 90% market share in Bangladesh and rest are shared by Piaggio and TVS.
• Bajaj is collaborated with Runner Automobiles Ltd (a motorcycle manufacturer in Bangladesh) to sell
their product in Bangladesh market.
• Runner and Bajaj to set up three-wheeler manufacturing plant in Bangladesh (annual production
capacity 30000).
OEM Key Dealer Name Vehicles dealt
Bajaj RUNNER AUTOMOBILES LTD 3W
Piaggio NAMSS MOTORS LTD. 3W

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 TARIFF

Three wheeled vehicles, NES

Fuel Type Petrol/Diesel/LPG/CNG
HS CODE 8703.90.19
Custom Duty (CD) 25
Regulatory Duty (RD) 3
Supplementary Duty (SD) 20
Value Added Tax (VAT) 15
Advance Income Tax (AIT) 5
Advance Trade VAT (ATV) 5
Total Tax Incidence 91.37%

Total Tax Incidence = Tariff / Assessment Valuation

Assessment Valuation = Invoice value * 1% Insurance cost * 1% Landing cost