We expect EV incentives in the upcoming budget

Bangladesh needs to adopt electric vehicles (EVs) faster for the sake of green mobility. From the government, we expect the upcoming national budget to offer some incentives for EV purchases, similar to those in China, India, and other countries.

Alongside building a market for EVs, we will also need local assembling and manufacturing of EVs, which would require incentives for investors. 

The government, in line with local industry development policies for two-wheelers and cars, gave us a duty structure that made locally made units subject to fewer duties and taxes compared to the imported ones. Continuation of this structure would encourage more factories in the country.

However, currency depreciation has made imported raw materials and parts more expensive in the past few years. Companies had to raise prices to survive, causing a market slowdown in the two-wheeler, automobile, and commercial vehicle segments.

If the government can slightly reduce duties and taxes on raw material and component imports, companies will have breathing space in profitability terms while retaining unit prices within reach of the people. If people buy more, the government's total revenue from the sector will not drop, and by using more vehicles, people can play a stronger role in economic growth.

Increasing duties in any segment of vehicles will lead to a further slowdown, which will be a loss-loss proposition for all.

Abdul Matlub Ahmad is the chairman of Nitol Niloy Group and the president of the Bangladesh Automobiles Assemblers and Manufacturers Association.