Bangladesh Auto Industries Limited (BAIL), a local automobile company is set to complete its facilities, civil work and other utilities of the proposed plant by December this year. The plant will be set up on a 100-acre land at Mirsarai economic zone, right on the outskirts of the city. The initial investment will be around $200 million.

Masud Kabir, managing director of BAIL has told the press, that the manufacturing units will be installed by next March and the manufacturing will begin in June. The company will be producing electric vehicles (EV) which uses chemical energy stored in rechargeable lithium-ion battery packs—the process which is much more efficient and environmentally friendly compared to using fossil fuels. Kabir also added saying, 80 per cent of the investment will be sourced locally while the rest will be sourced from outside the borders as foreign direct investment. The total investment of $1 billion will be made throughout the first five years.

BAIL will manufacture all sorts of vehicles starting from two-wheelers, three-wheelers, sedan, hatchback and sport utility vehicles (SUV) and also gradually start manufacturing pickup trucks, mini trucks and multipurpose vehicles. There are estimated prices as well—an SUV will sell at Tk 25 lakh, sedan at Tk 12-15 lakh and the motorcycles will be priced somewhere between 50,000 to Tk 1.5 lakh.

This will cut fuel cost by 90 per cent and per kilometre energy cost will come down to less than Tk 2

There is a gradual worldwide increase in demand for electric vehicles, meaning the project as a certain future to not only be limited to meeting national demands but also export these vehicles to other countries. It is estimated by many experts that in the next 25 years, all fossil fuel cars would be replaced by EVs or other alternatives.

Using electric vehicles will cut fuel cost by 90 per cent and per kilometre energy cost will come down to less than Tk 2. This is a huge positive change in the transport sector of the country. At the same time much better for the environment. Kabir said the plant will manufacture about 60 per cent of the components, including the lithium battery, motor, controller, software platform, chassis and the body.

Currently, China is leading the electric car use, followed by the US, Norway, Japan and the UK.