[🇧🇩] Automobile Industry of Bangladesh including parts

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Maiden electric vehicle plant in Chattogram at Tk 14b investment

The EV manufacturing plant is under construction in Chattogram, with an investment of Tk 14.4 billion.

en.prothomalo.com

Maiden electric vehicle plant in Chattogram at Tk 14b investment

The country’s very first electric vehicle (EV) manufacturing plant is under construction in Chattogram, with an investment of Tk 14.4 billion.

The Bangladesh Auto Industries Limited (BAIL) is implementing the project in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Mirsarai, and planning to launch the locally produced electric vehicles in the market by next March.

Of the investment, an amount of Tk 7.9 billion is funded by ten banks, while the remaining fund will come from private entrepreneurs. The authorities have already completed the factory construction works on a portion of 100 acres of land in the BSMSN economic zone and are now installing the machinery.


The factory will manufacture key components of electric vehicles, including the main body, battery, motor, and charger. The productions will account for approximately 75 per cent of the total investment, while the remaining 25 per cent will be spent to import the interior designs.

The vehicles will go through rigorous testing before being released to the market. There is a plan to add charging facilities to petrol pumps across the country.

The BAIL is a subsidiary of Mango Teleservices. Its chairman A Mannan Khan, who has been running the technology business for 30 years, said it is a global trend that the tech companies spearhead EV manufacturing industries and they followed the suit.

It is the time to manufacture eco-friendly vehicles in the country. The space for conventional automotive industry is shrinking and, at the same time, being replaced by electric vehicles, he added.


Big investments in three factories

The total fund will be divided among three factories, each responsible for manufacturing different components of the electric vehicles. With an investment of Tk 5.5 billion, the BAIL will produce the main body of the vehicles, including sedans, SUVs, microbuses, trucks, covered vans, and buses. A consortium of banks, including Agrani Bank, BDBL, BIFFL, Islami Bank, and First Security Islami Bank, will contribute Tk 2.4 billion to the venture.

When contacted, the managing director (MD) of Agrani Bank did not make any comments over the investment.

Islami Bank MD Mohammed Monirul Moula said cost-effective electric vehicles are gaining popularity globally. “We got engaged in the project in the consideration of the country’s betterment. We intend to participate in more projects that fall into the line.”

Apart from that, the lithium batteries will be produced in the factory of Bangladesh Lithium Battery Limited, a subsidiary of BAIL. The batteries will be used in electric vehicles consisting of two, three, or four wheels, in addition to some other machinery.

The factory will cost Tk 7.5 billion to be constructed, where Tk 5.5 billion will be funded by different banks. The Eastern Bank has reached a consensus with the BDBL, Sonali Bank, Rupali Bank and Mercantile Bank to collectively provide Tk 3.5 billion as the first installment of the Tk 5.5 billion fund, with the remaining Tk 2 billion planned for the second installment.

The managing director of Rupali Bank, Mohammad Jahangir, said, “We have been with the project due to its unique and promising aspect. We hope Bangladesh will enter the era of eco-friendly electric vehicles thanks to the project.”

The remaining parts, including motors, motor controlling and charging systems, will be produced in a factory of Mango Technologies Limited. The entrepreneurs are investing Tk 1.4 billion to set up a factory in this regard.

And, the interior designs will be imported through the Mutual Trust Bank.

A Mannan Khan, an entrepreneur, said the good banks express interest in this type of projects across the world and the situation here is nothing different.

He disclosed that equipment for the projects has already been imported, and installation is set to commence in October, while the trial run is scheduled for January. They are planning to launch the vehicles in the market next March.


How will the EVs cost?

The electric cars will be branded as a locally manufactured product. The BAIL will have an annual manufacturing capacity of 60,000 2-wheelers, 40,000 3-wheelers, and 30,000 4-wheelers.

The project will create employment opportunities for around 1,500 people, with the potential for further expansion that could employ up to 5,000 people at a time.

The vehicles are designed with user comfort in mind, featuring modern facilities. There will be inside charging and Wi-Fi facilities, allowing passengers to conduct business or work while on the move.

The price will vary based on the vehicles’ charging capacity and range. A sedan car with a 250 km single-charge range will cost Tk 1.2 to 1.3 million, while that of 350 km single-charge range will cost Tk 1.6 to 1.7 million.

The price of a SUV or Jeep with a 350 km single-charge range will be Tk 2.3 to 2.5 million, while that of 400 km single-charge range is Tk 2.8 to 3 million.

A seven-seater microbus with a 250 km single-charge range will cost Tk 2 to 2.2 million and that of 350-km charge range will cost Tk 2.5 to 2.6 million.

Besides, a three-wheeler will be priced at Tk 400,000 to 500,000, while the prices of covered vans, trucks, and buses will range from Tk 1.5 to 3 million.

 

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Bangladeshi entrepreneur is building Hyundai car at an affordable price.

 

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Rancon teams up with Genex to set up 21 EV charging stations

Rancon Motors, the sole distributor of Mercedes-Benz in Bangladesh, has teamed up with Genex Infrastructure to set up electric vehicle (EV) charging stations around the country to provide charging facilities in the future.

www.thedailystar.net

Rancon teams up with Genex to set up 21 EV charging stations​

For 2024, Rho Motion forecasts global EV sales growth of between 25% and 30%. Image: Ernest Ojeh/ Unsplash.

Rancon Motors, the sole distributor of Mercedes-Benz in Bangladesh, has teamed up with Genex Infrastructure to set up electric vehicle (EV) charging stations around the country to provide charging facilities in the future.

Genex and Rancon are going to set up a total of 21 charging stations across the country before the launch of an EQ series of EVs of Mercedes-Benz for smooth operations and to ensure ease for customers.

"Initially, we will set up seven charging stations in Dhaka and 14 stations in important locations across the country by April 2024," said Chowdhury Md Nabil Hasan, head of marketing of Rancon Motors.

Charging stations are going to be set up as a preparation centring the launch of five different models of EVs of Mercedes-Benz by April, he said.

A memorandum of understanding (MoU) was signed between two entities at the Mercedes-Benz showroom in Rangs Babylonia Tower at the Tejgaon industrial area on February 12 to set up the charging stations.

Imran Zaman Khan, divisional director of Rancon Motors, Redwanul Zia, chief executive officer, Syed Shafiqul Hassan, chief operating officer at Genex Infrastructure, Mahmudul Hasan Lorance, deputy general manager (finance), Pallab Kumar Paul, senior manager (solution and R&D), and Ghalib Mohammad Karim, assistant manager (business engagement), were present.

According to Hasan, sales of EVs had started just recently in Bangladesh and till now around 80 units of EVs, including of brands Audi, Tesla and BMW, had been registered with Bangladesh Road Transport Authority (BRTA).

He said Rancon would be the third company to officially declare plans to establish charging stations at different parts of the country as they understand that gradually EVs would grab the automobile market of the country.

The EVs are the future of the market not only globally but also in Bangladesh as they do not require as much servicing as do fossil fuel-run vehicles, he said.

Besides, the import tax is only 90 percent for EVs while for fossil fuel-run ones it is 143 percent to 350 percent depending on the cubic capacity (cc) of the engine, said Hasan.

Regarding the charging stations, he said ultimately the EV charging stations would replace existing fuel refilling stations in the country.

"We will not charge our customers for around one year but customers of other vehicle brands can charge their cars at a reasonable cost," he noted.

According to him, all EVs vehicles from Mercedes-Benz have an advertised range of over 450 kilometres to 650 kilometres per charge.

For this, the 21 charging stations would cover premium hotels, tourist destinations, highway restaurants, shopping malls, and critical commercial areas, he said.

Through this move, Rancon Motors is reinforcing its commitment to environmental stewardship and bringing cutting-edge electric mobility to customers in Bangladesh, he said.

"We are all working together to achieve the goal of Smart Bangladesh," said Imran Zaman Khan.

"Our aim is to work towards increasing the penetration of electric vehicles in Bangladesh and ensure a seamless and convenient experience for our customers through charging stations," he said.

"As more people start using electric vehicles, the demand for charging stations will increase. Our skilled and dedicated team is ready to complete the project properly for a seamless customer experience," said Mahmudul Hasan Lorance.​

 

[Saif]

Chinese company BYD bringings electric cars to Bangladesh.

 

[Saif]

Electric vehicles are climate-friendly but not a cure-all solution

Electric vehicles (EVs) are considered climate-friendly alternatives to internal combustion engine (ICE) vehicles. EVs can limit ecological damage, reduce smog (mix of smoke and fog i.e., air pollution) and protect public health. Driving an EV (i.e., battery operated car i.e., BEV) off the current

thefinancialexpress.com.bd

Electric vehicles are climate-friendly but not a cure-all solution​

MOHAMMAD ABU YUSUF

Published :​

Feb 27, 2024 21:39

Updated :​

Feb 27, 2024 21:39

Electric vehicles (EVs) are considered climate-friendly alternatives to internal combustion engine (ICE) vehicles. EVs can limit ecological damage, reduce smog (mix of smoke and fog i.e., air pollution) and protect public health.

Driving an EV (i.e., battery operated car i.e., BEV) off the current grid is still much less polluting than driving an ICE vehicle. According to the modeling by the NRMA and PwC Australia, an average new ICE vehicle emits around 185 gCO2/km compared to an average new battery electric vehicle (BEV) which emits around 98 gCO2/km, if charged via the grid. ICE vehicles emit a range of particulates, contaminants, gases and a lot of heat as a result of the combustion process, whereas BEVs emit a little heat only. However, if EV battery is charged from "dirty" power sources, it would contribute to global warming.

Governments and automakers around the world have been promoting EVs as a key technology to curb oil use and fight climate change. However, an important but often ignored fact is that the climate mitigation benefits of BEVs are usually delayed.

EVS COST MORE BUT WITH UPFRONT SAVINGS: EVs generally cost more to buy than petrol and diesel vehicles. However, prices are falling as more players enter the market. Governments in countries offer incentives to help ensure the next car one buys is not a gas guzzler. The Australian government also offers a fringe benefits tax exemption if one buys an EV by salary sacrificing.

CHARGING OF EV IS CHEAPER: The cost of charging an EV is cheaper than filling a tank with petrol or diesel. For example, charging a 65kWh electric HundaiKona overnight cost about A$20 while the cost of filling the petrol tank is closer to A$90. Another cost saving comes from servicing. EV models do not need servicing as often because they do not have an engine, gearbox, spark plugs and exhaust systems.

Australians bought more than 87,000 EVs in 2023. Lack of public fast-charging infrastructure is often quoted to be a major barrier to electric vehicle uptake. It is reported that Electric vehicle charging sites will double in Australia over the coming year. The number of cars-charging stations surged by 90 per cent in Australia during 2023. Local firm Chargefox had installed the greatest number of electric chargers in Australia (The Guardian).

EVS ALSO PRODUCE EMISSIONS: EVs do not produce any tailpipe emissions. However, EV's lifecycle emissions may be considerable. Emissions produced during a vehicle's production, operation and disposal are often collectively called "lifecycle emissions". These include emissions produced during:

l the vehicle manufacturing process;

l to manufacture a vehicle and its battery (as is the case for all vehicles)

l to generate the electricity for an EV

l from tyre, brake and road wear (as is the case for all vehicles).

l the transport of the vehicle to its first point of sale

l generation of electricity

EVS ARE LESS EMITTING BUT THEY MAY ALSO CONTRIBUTE TO EMISSION: Most electric cars tend to produce significantly lower emissions than most cars operated with gasoline. Even though electric vehicles are more emission-intensive because of their batteries, their electric motors are more efficient than traditional vehicles run by fossil fuels. Experts largely agree that electric vehicles create a lower carbon footprint over the lifecycle than do traditional cars and trucks that use internal combustion engines. For this reason, the world has experienced a rapid growth of the EV market. As for instance, the EV stock reached 16.5 million worldwide, triple the amount in 2018. EV sales have grown significantly in recent years. In 2020, EV and hybrids constituted more than 10 per cent of total car sales. And there is a growing political and economic will to transition to EVs (UNFCCC, n.d.).

However, there is a misconception about EV. EVs are not emission free and by no means a silver bullet. Dr. Sergey Paltsev, an EV expert, believes the biggest misconception around EVs is the concept they are going to decarbonise transport. The notion of EVs as "zero emission vehicles" must be properly qualified due to the need to decarbonise electricity production (that EVs use) and account for emissions during mining of minerals and refining of rare metals needed for battery production, such as cobalt and lithium. For example, for every ton of extracted lithium, between 5 and 15 tonnes of carbon is created. Manufacturing batteries also results in long carbon journeys.

The level of emissions depends on where the electricity to charge electric vehicles comes from. EVs are only as green as the power grid they draw from. For example, if a person drives an EV in Norway, where most electricity is powered by near zero emission hydroelectricity, then the person is contributing much lower levels of CO2. But if the person drives the same car in China, where most electricity comes from coal-fired power plants, he may be contributing as much CO2 equivalent as that, of using two-thirds of a tank of petrol.

It is generally more expensive to charge an EV at a public charging station than at home. The full benefits of EVs are available when electricity sources become renewable (hydro, wind, solar, nuclear etc). An EV can produce zero emissions from vehicles if it uses 100 per cent renewable energy. However, it might take many years for that to happen. It is imperative that electric grids need to get much, much cleaner before electric vehicles are truly emission-free.

MAKING BUILDINGS 'EV-READY': EV charging is a high-power application. It impacts overall building power supply. Only the owner of the building can make strategic investment decisions for a commercial building. A tenant may initiate a request to the owner to provide EV charging. An owner may facilitate the tenant by providing with a few dedicated EV charging car spaces and expanding the number as demand increases (NSW Government 2023).

Buildings need to have features to accommodate EV charging. This is not even present in developed countries. Not many existing buildings in developed countries currently accommodate EV charging. Government department may develop helpful guidelines for making buildings EV-ready. This will help owners, managers, occupants and strata managers design, retrofit and wire 'EV readiness' into apartment and commercial buildings.

EVS ARE STILL ON THE WINNING SIDE: Compared to fossil fuel cars, electric cars use less energy and can charge from zero-carbon sources. The picture for electric cars will improve as power from the wind, hydro and the sun, replaces gas and oil, reducing carbon emissions from generating electricity. Lucien Mathieu, T&E's cars director, said that even if you choose a worst-case scenario - vehicles made and run with electricity largely from coal - the electric car will win out after about 70,000km (about six years of driving). "The more you drive an electric car, the better it gets" (The Guardian, 23 Dec, 2023). Further, battery development is still in relative infancy, and is likely that EV batteries will be developed further with new technology, resulting in lowering costs and putting the balance further in favour of EVs.

POLICY NOTES: Unlocking a lower interest rate to buy EV is another policy support. The Commonwealth Bank in Australia offers personal loan discounts for customers who show willingness to invest in an electric vehicle. The Commonwealth Bank's EV loan covers the cost of the vehicle, charging station and batteries.

It is hoped that as the numbers of EVs on the road increase, the infrastructure will also increase. The mass rollout of EVs depends on the availability of charging stations. The supply of charging stations on the other hand depends on expected demand for EVs. This chicken and egg problem may be solved with well-coordinated public policy.

Despite huge potential and increasing adoption, EVs will not be a magic bullet for sustainable transportation. Enhancing public transportation, land-use planning that encourages compact development, and reducing the use of private motorised transport by mode switching to walking, biking and public transport will be essential for a carbon free sustainable transportation. Not having an electric car is better for the environment if we can rely on public transport instead.

The respective authority/government body may consider forming a fund/needed policy supports to build fast-charging stations. Cutting taxes on EVs could be another option to encourage EV uptake.

Mohammad Abu Yusuf is Additional Secretary, Finance Division, Ministry of Finance, Government of Bangladesh.​