30% of govt vehicles to go electric by 2030

• Government targets 30% EV procurement by 2030
• Draft policy offers financing, tax incentives
• Plan includes nationwide charging network rollout
• Industry warns import bias hurts local manufacturing

With a dozen incentives for manufacturers, importers and users, the government plans to mandate that at least 30 percent of all vehicles procured by government, semi-government, autonomous and corporations be electric by 2030.

The draft National Electric Vehicle (EV) Policy 2025, led by the Ministry of Industries, sets out a roadmap to cut transport-sector emissions, reduce dependence on fossil fuels and promote cleaner mobility.

A discussion on the draft took place yesterday at the Ministry of Industries, where officials from other ministries, industry leaders and experts shared feedback.

However, meeting sources said no concrete decision was made regarding several concerns raised there.

To encourage wider adoption, the government has proposed a series of financial incentives.

These include up to 60 percent bank financing for new EV purchases, with repayment periods of up to eight years.

Customs duty on fully built EVs could be reduced to 5 percent, while bonded warehouse facilities would be extended to local manufacturers to support exports.

Other incentives include a 50 percent cut in registration fees and full exemption from advance income tax (AIT) on EV registration, tax tokens and fitness certificates until 2030.

To phase out conventional fuel vehicles, the draft also proposes benefits on scrapping fossil fuel cars.

The policy also proposes developing a nationwide EV charging network under the Electric Vehicle Charging Guideline 2022.

Charging stations will be set up in both urban and rural areas, with an emphasis on solar-powered facilities.

To oversee implementation, the policy suggests creating an Electric Vehicle Industry Development Council, chaired by the industries adviser and comprising 32 members.

Other recommendations include setting operational lifetime limits for conventional vehicles, formalising unregistered electric three-wheelers such as "battery rickshaws" and "easy bikes", and introducing EV technology into technical education programmes.

Manufacturers will be required to meet international safety and performance standards for batteries, braking, lighting and other components.

The safe disposal and recycling of lithium-ion and lead-acid batteries will be mandatory under the Department of Environment rules.

The draft also stresses promoting local innovation and developing backward linkage industries through research and development, aiming to build a skilled workforce and attract both local and foreign investment.

Yet, stakeholders raised a number of issues in the current version.

Mir Masud Kabir, managing director of Bangladesh Auto Industries Ltd, a subsidiary of Mango Teleservices, voiced concerns during the meeting.

He said that although feedback was gathered from 12 institutions, including the National Board of Revenue (NBR) and private investors, several parts of the policy had been included directly from the Cabinet Division without scope for revision.

Kabir criticised the proposed reduction in customs duty from 25 percent to 5 percent on finished EVs. "This undermines local manufacturing," he said. "If battery imports are taxed at just 1 percent, why would anyone invest in local production?"

He also called for direct consumer incentives, similar to those offered in India, China and the United States, to increase adoption.

Highlighting the lack of clarity in key definitions, Kabir warned that vague distinctions between "manufacturer" and "assembler" could discourage genuine investors.

He also urged the government to align its environmental ambitions with employment priorities.

"If we want zero carbon, we must also aim for zero unemployment. Imports alone will not build an industry; we must create jobs through local manufacturing," said Kabir.

Rashidul Hassan, Additional Secretary at the Ministry of Industries, acknowledged that industry representatives had raised concerns about the policy's import-heavy approach.

He said the government aims to protect local industries but added that domestic capacity is not yet sufficient to meet expected EV demand.

"The policy is still in draft form," he said. "More inputs came from the Cabinet Division in this version. The policy will be revised based on stakeholder feedback and then sent to the Ministry of Law and the Cabinet for final approval."