Bangladesh’s automotive sector has reached a pivotal moment as Runner Automobiles PLC signed a master supply and manufacturing agreement with Shenzhen-based EV giant BYD Auto Industry Company. Paving the way for locally produced electric and non-electric vehicles in the country.

The agreement was signed on 24^th March in China, following approval at a Runner board meeting on 20^th March. Under the deal, Runner will conduct a feasibility study for the local production of all BYD electric and non-electric vehicles.

The partnership is expected to mark a significant milestone for Bangladesh’s automotive sector. Creating opportunities for local manufacturing and technology transfer. Runner’s Chief Financial Officer Shanat Datta confirmed that the main goal is for Runner to manufacture BYD branded cars in the country. And that it will design and develop the necessary factory infrastructure to support production.

The collaboration is expected to pave the way for local vehicle production, technology transfer, and increased industrial capacity in Bangladesh. For investors, this signals a growing appetite for advanced manufacturing partnerships in Bangladesh’s emerging automotive space.

Runner is not starting from scratch. In May 2025, the company acquired land in Sreepur and near its existing facility in Bhaluka. With plans to establish a vehicle manufacturing plant in collaboration with a foreign partner. The company already has a proven track record in automotive production. Having already invested around BDT 300 crore to manufacture Bajaj three-wheelers.

The timing of the agreement aligns well with a supportive policy environment. 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 comparison to duties as high as 89% on imported electric and plug-in hybrid cars.

The government has also been actively promoting EV adoption, targeting a 30% electric vehicle market share by 2030. This combination of fiscal incentives and long-term policy goals creates a compelling investment case for companies exploring local manufacturing in the EV space.

Investors responded swiftly to the announcement. Runner Automobiles’ share price rose 9.97% to Tk37.50 on the Dhaka Stock Exchange. A clear signal of market confidence in the deal’s potential. The company returned to profit in FY25, driven by robust sales growth particularly in the three-wheeler segment, recording a consolidated profit of Tk102 million.

Source: The Business Standard