Runner Automobiles PLC has signed a master supply and manufacture agreement with China’s BYD Auto Industry Company Limited to manufacture electric vehicles locally.
The company informed shareholders through the Dhaka Stock Exchange on Tuesday that its board described the deal as a landmark move for Bangladesh’s automobile sector, positioning Runner Automobiles to expand its portfolio and strengthen BYD’s market presence.
The regulatory disclosure did not elaborate on project specifics.
Runner officials, however, told TIMES of Bangladesh that it would take around a month to finalise the project plan.
The electric car manufacturing facility will be built at Runner Automobiles’ Bhaluka factory complex and will be fully BYD-compliant for painting and assembling vehicles, initially.
CG Runner, a sister concern of Runner Automobiles, began distributing BYD cars in March 2024 and has sold over 600 units since the launch.
Imported electric and plug-in hybrid vehicles are currently subject to around 93 per cent total tax implications (TTI), while local painting and assembly of completely knocked down units would reduce the TTI to around 40 per cent, said Runner Automobiles Chief Financial Officer Shanat Datta.
The tax advantage would allow the company to lower prices of locally made BYD cars and expand the brand’s market leadership in Bangladesh, he added.
BYD is the top-selling electric vehicle brand globally, giving Runner a strategic edge in the emerging EV market.
Runner Automobiles is a pioneer in two-wheeler manufacturing in Bangladesh, producing KTM, UM, Vespa and its own Runner brand, while also manufacturing Bajaj three-wheelers at its Bhaluka, Mymensingh factory complex.
The new BYD plant will be set up within the Bhaluka complex using available land, according to company sources.
Analysts said the partnership could mark a turning point for Bangladesh’s EV industry by reducing costs, boosting local production and attracting investment, while giving Runner a first-mover advantage in a market constrained by high import taxes.
The move also aligns with global trends of promoting domestic assembly to lower tariffs, improve supply chains and accelerate the adoption of electric vehicles.
Runner Automobiles shares hit the top circuit on Tuesday as the price surged by nearly 10 per cent to Tk37.5 apiece.
