China interested in setting up electric vehicle factory in Bangladesh: Envoy

China has expressed its interest in setting up an electric vehicle (EV) assembly plant in Bangladesh.

Chinese Ambassador in Dhaka Yao Wen conveyed this interest to Planning Minister MA Mannan during a meeting on Wednesday.

The envoy also told reporters that China will not interfere with Bangladesh's election and that the people of Bangladesh will choose who will come to power next.

Speaking to journalists after the meeting, the planning minister said the entire world is now moving towards electric vehicles. In this situation, the Chinese envoy has proposed jointly building an electric car assembly plant in Bangladesh.

He said, according to the ambassador, if Chinese investors set up an electric car assembly plant here, they will get a good market, and Bangladesh will also benefit from it.

The government has a target of having at least 15% of registered electric vehicles by 2030.

According to a UNDP report, several companies have plans to manufacture EV vehicles. Bangladesh Auto Industries, a local automobile company working with Toyota, has been keen to produce electric vehicles in the country with an initial investment of $200 million.

The plant will manufacture almost 60% of the components of the vehicles, including the lithium battery, motor, controller, software platform, chassis, and body.

The EV cars would sell for Tk12-15 lakh each with a 50 kilowatt battery capacity, which would give a 400-kilometre driving range.

Nitol Motors plans to roll out 20,000 EVs locally. The model, Suvare, will cost Tk10-12 lakh and would come with a 25KWh battery that would allow driving for 200km.

Meanwhile, the Bangladesh Road Transport Corporation (BRTC) has taken an initiative to purchase 100 electric AC double-deckers from India.

The UNDP will provide $18 crore in support for an enhanced policy and institutional framework with appropriate regulations for EVs and charging stations and tailored capacity building.

The UNDP project aims to increase the penetration of 4-wheeled EVs in Dhaka's public transport system.

To meet the objective, the following targets will be accomplished under the project: installation of four charging stations for BRTC buses, installation of three solar hybrid 2-3 wheelers; operationalisation of 20 air-conditioned electronic buses (50 seats) with the cost of BRTC; and recycling and disposal facility of waste lead-acid batteries in Dhaka.

MA Mannan said the ambassador has also stated that apart from investing in EV assembly, China will also provide Bangladesh with all kinds of assistance after its graduation from the least developed country status in 2026.

The minister also said after the completion of the Padma Bridge, the possibility of investment has been created in the southern part of the country.

China is interested in investing in that region. They have already started working on the development of Mongla Port. They want to work on other infrastructure development, he added.

After the meeting, Ambassador Yao Wen told reporters, "As a long-time friend of Bangladesh, China will provide all possible cooperation in the development of bilateral trade relations. If Bangladesh goes from a less developed country to a developing country, China will allow quota-free trade facilities.

"China will allow Bangladesh tax benefits in the Chinese market following the country's graduation from the list of least developed countries in 2026."

The ambassador said China is not worried about Bangladesh's foreign debt repayment.

Regarding further investments, Yao Wen said China would like to invest more in projects in the southern regions of the country now that connectivity has improved because of the Padma Bridge.

When asked about China's position in Bangladesh's upcoming national election, the envoy said that China will not interfere in other countries' internal affairs.

"China will not interfere with the election; the people of Bangladesh will decide who will come to power in the next election," he added.

China is also interested in providing training for Bangladeshi personnel involved in long-term development projects.

"They [China] are experienced in many sectors. For example, in infrastructure. They can help us with that," the planning minister told journalists.

Bangladesh considers China an important neighbour, Mannan said, adding, "China is an important friend of Bangladesh. We value it."

Meanwhile, the Bangladesh government has awarded the China Road and Bridge Corporation the contract to set up "Chinese Economic and Industrial Zone" in Chattogram as a Chinese government's nominated developer.

The Committee on Economic Affairs in a meeting, with Finance Minister AHM Mustafa Kamal in the chair, in principle approved a proposal of the Bangladesh Economic Zone Authority (Beza) in this regard, reports UNB.

The Chinese firm will establish the economic zone on a G2G basis on 784 acres of land in Anwara upazila of Chattogram.

It will also provide the necessary utility services along with the development of the economic zone.

The zone is fully dedicated to Chinese entrepreneurs and investors in chemical, automobile assembly, garments and pharmaceutical sectors.