Highlights:
- Runner signs deal with China's BYD to make vehicles in Bangladesh
- Now feasibility study to be conducted for local production of EVs and non-EVs
- Land already acquired in Magura and Mymensingh
- Announcement pushes Runner's share price up 9.97%
- Runner has prior experience producing Bajaj three-wheelers
- It markets brands like Eicher, KTM, and Vespa
- Govt targets 30% EV market share by 2030
Bangladesh's ambitions to enter the electric vehicle (EV) manufacturing space took a step forward as Runner Automobiles partnered with the Chinese BYD Company on a potential local production venture.
Shanat Datta, chief financial officer of Runner Automobiles, told The Business Standard that an agreement was signed on Tuesday (24 March) between the two companies in China. Under the agreement, Runner will conduct a feasibility study for the local production of all BYD EV and non-EV vehicles.
Earlier, the decision was approved at a Runner board meeting on 20 March, where the company authorised signing a master supply and manufacturing agreement with the Shenzhen-based EV giant. The collaboration is expected to pave the way for local vehicle production, technology transfer, and increased industrial capacity in Bangladesh.
Company officials said the initiative is still at an early stage. CFO Datta said a comprehensive feasibility study will determine key aspects such as investment size, funding sources, plant construction, implementation timeline, and partnership structure. A detailed plan is expected by April.
"Our main goal is to manufacture BYD-branded cars in the country," he said, adding that the company will design and develop the necessary factory infrastructure to support production, following the rules and regulations.
The move comes as Bangladesh maintains high import duties on vehicles, making locally assembled or manufactured cars significantly more competitive. Recent policy support has further strengthened the case for localisation.
In the 2025-26 fiscal year budget, the National Board of Revenue reduced the duty and tax burden to around 33% for locally produced electric or hybrid vehicles meeting certain investment and value-addition thresholds. In contrast, imported electric and plug-in hybrid cars currently face duties as high as 89%.
The government has also been actively promoting EV adoption, targeting a 30% electric vehicle market share by 2030. Incentives for battery technologies, including lithium and graphene, have been introduced to support this transition.
BYD is one of China's leading clean energy firms, known for EVs, batteries, and renewable solutions. Founded in 1994, it has grown into a global EV powerhouse, competing with companies like Tesla. BYD produces cars, buses, and trucks, while also manufacturing advanced lithium batteries.
The company is expanding rapidly across Asia, Europe, and Latin America, playing a key role in the global transition to sustainable transportation.
The announcement by Runner had an immediate impact on the stock market, with its share price rising 9.97% to Tk37.50 on the Dhaka Stock Exchange.
Industry insiders say Runner has been preparing for such a venture. In May 2025, the company acquired land in Sreepur, Magura, and near its existing facility in Bhaluka, Mymensingh, with plans to establish a vehicle manufacturing plant in collaboration with a foreign partner.
Runner already has experience in automotive production, having invested around Tk300 crore to manufacture Bajaj three-wheelers. It also markets a range of international brands, including Eicher trucks and buses, KTM motorcycles, and Vespa scooters, alongside its own two-wheeler line-up.
Despite its diversified portfolio, the company has faced profitability challenges. It reported a loss of Tk1.41 crore in the second quarter (October-December) of the current fiscal year, although overall first-half profits stood at Tk2.93 crore. Revenue during the July-December period rose 31% year-on-year to Tk592.18 crore, driven by strong growth in truck, pickup, and tractor sales.
Company officials said the initiative is still at an early stage.
www.tbsnews.net
