Policies

Automobile Industry Development Policy

Source: International Energy Agency
Last updated: 24 June 2025

The Automobile Industry Development Policy provide the incentive framework for the development of an EV industry and uptake in Bangladesh. 

For EV users:

  • EV users will get purchase incentives when they buy an EV, get scraping incentives when they scrap an EV after use and get subvention on loans when they buy the EV by taking bank loans.
  • EV users will get a waiver on road tax for a certain period.
  • EV users will enjoy reduced registration fees.
  • Govt will have a mega project to install charging stations nationwide to reduce range anxiety.

For companies:

  • Zero duty to import capital machinery and equipment
  • Duty-free access to import auto parts for four year
  • Investors will get concessional loans
  • A 15 percent cash incentive to export Completely Build-up units (CBU) or Completely Knocked Down (CKD) cars
  • 25-25% tax incident to import for CKD level manufacturer, 10% tax on sourcing local parts
  • 1% tax rebate if invest 1% of the income to R&D
  • 10-year tax holidays to EV assemblers or manufactures

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