Prices of Chinese Cars Decline

Electric vehicles (EVs) are gaining popularity in Bangladesh, with Chinese brands, particularly BYD, drawing increasing attention in the market. EV prices in the country start at around Tk 60 lakh. Younger buyers, especially families that already own two cars, are showing interest in purchasing EVs as a third vehicle.

If importers can ensure proper use of government incentives, a new customer base for EVs is expected to emerge. The use of electric vehicles is likely to expand further in the country, driving technological transformation, reducing environmental pollution, and saving foreign currency in the energy sector.

Amid concerns over a possible energy crisis due to the Iran-US war, the government has placed strong emphasis on EV imports. If the proposed measures are implemented, EV prices could drop by up to Tk 10 lakh. In a move to promote environmentally friendly and energy-efficient technology, Finance Minister Amir Khosru Mahmud Chowdhury has reduced customs duties on EV imports in the proposed budget. He has also announced the waiver of government registration fees. For the first time, the country has introduced a value-based duty structure instead of the traditional tariff system.

Samshul Islam, chairman of private travel agency BRI Fresh, has been using a BYD EV for the past 15 months. He said he is highly satisfied with the vehicle. It came with two chargers, he installed one at home and another at his office. When traveling outside Chattogram, charging facilities are available in Cox’s Bazar, and a large charging station is also located in Chouddagram. He added that mobility would become even more convenient if the number of charging stations increases. The vehicle comes with an eight-year warranty.

Mahbubul Haque Chowdhury Babar, former secretary general of BARVIDA, the association of vehicle importers and dealers, has urged the establishment of EV charging stations and after-sales service facilities across the country. He said marketers must be more attentive to attracting customers to this new technology and build trust among consumers.

In the proposed budget, the finance minister set a value-based duty structure for EV imports. A 61 percent duty has been fixed for vehicles priced at a minimum of 25,000 US dollars. Previously, the minimum duty rate for this category was 93 percent. The reduction of 32 percentage points could lower EV prices by Tk 8 lac to Tk 10 lac.

Chinese BYD vehicles in Bangladesh are being marketed by CG Runner Bangladesh Limited.

Car dealers say BYD’s main customers in Bangladesh are currently Toyota Harrier users. Relatively lower-priced EVs in the Primo or Allion segment have not yet entered the market in large numbers. As a result, the EV customer base remains largely limited to high-income buyers.