Regulatory Landscape

The 375cc Policy:
What Actually Changed

For two decades, Bangladesh kept a hard 165cc ceiling on motorcycles. The September 2023 Ministry of Home Affairs meeting shattered that ceiling in a single session, though with a critical caveat that every market participant must understand.

April 2022

Manufacturing Licenses Unlocked

Ministry of Industries begins granting factory approvals for local production of motorcycles up to 500cc, sparking investment but leaving road-use rules ambiguous.

Import Policy Order 2021-2024

CKD Parts Ceiling Raised

Import of raw materials and knocked-down parts for local assembly extended to cover 500cc motorcycles. CBU imports for public use remain capped at 165cc.

7 September 2023

Ministry of Home Affairs: Decision Day

Under Home Minister Asaduzzaman Khan Kamal, a formal meeting resolves years of limbo: locally manufactured motorcycles up to 375cc are approved for road use. Minutes circulated to BRTA, Ministry of Commerce, Ministry of Industries, Trade and Tariff Commission, Bangladesh Police, and BMAMA.

11 October 2023

BRTA Circular: Registration Opens

BRTA Director (Engineering) Sitangshu Shekhar Biswas confirms: registration is now open for locally manufactured motorcycles up to 375cc. Road Transport and Highways Division issues the official notification signed by Deputy Secretary Monirul Alam.

January 2025

Final Confirmation and Clarity

Full regulatory clarity secured. Locally manufactured bikes up to 375cc are unambiguously legal on Bangladeshi roads. Local manufacturers can produce up to 500cc for export markets only.

The Critical Distinction: The 375cc permission applies exclusively to locally manufactured or assembled (CKD) motorcycles. Imported complete-build-unit (CBU) motorcycles remain restricted to a maximum of 165cc for the general public. Law enforcement and government agencies may import higher-cc CBU units under separate provisions.
✅

Allowed on Road (as of 2026)

Locally manufactured and assembled motorcycles up to 375cc; imported CBU motorcycles up to 165cc; all BRTA-registered electric two-wheelers regardless of power class.

Permitted
🚫

Still Restricted for Public

CBU imports of motorcycles exceeding 165cc for the general public remain prohibited under the current Import Policy Order. Local manufacturers cannot sell their 376cc to 500cc production domestically.

Restricted
⚡

Electric Two-Wheelers

No engine-cc restriction applies. BRTA began formal EV registration in September 2022. Green number plates distinguish EVs. 669 EVs formally registered by May 2026. Both CBU and CKD routes available with favorable duty structures.

Open Market

Import Architecture

CKD vs CBU: Bangladesh's
Two-Tier Import Reality

The import policy for motorcycles and electric two-wheelers in Bangladesh is built on a deliberate philosophy: protect and promote domestic manufacturing while keeping consumer prices accessible. Understanding this two-tier system is non-negotiable for any market entrant. Updated 2026

What is CKD? Completely Knocked Down units arrive as unassembled or partially assembled parts, with chassis and engine typically pre-assembled but the remaining components shipped separately for local assembly. What is CBU? Complete Build Units arrive fully assembled from the overseas factory, essentially ready for the road out of the box.
Category Engine Range Import Type Customs Duty Total Tax Incidence Who Can Import
Standard Commuter 100cc to 165cc CBU 25% ~150%+ combined Any registered importer / assembler
Standard Commuter 100cc to 165cc CKD Parts 10% to 15% ~45 to 60% combined Licensed local manufacturers (Category 1 and 2)
Mid-Segment (Category 1) 166cc to 250cc CKD Engine Only 3% ~30 to 40% combined Category 1 licensed manufacturers only
Mid-Segment (Category 2) 166cc to 250cc CKD Parts 15% ~50 to 65% combined Category 2 licensed manufacturers
Upper Segment (Category 1) 251cc to 375cc CKD Parts 10% ~45 to 55% combined Category 1 licensed manufacturers only
Upper Segment (Category 2) 251cc to 375cc CKD Parts 25% ~65 to 75% combined Category 2 licensed manufacturers
High-CC Export 376cc to 500cc CKD Parts (Export Only) Variable Favorable for export BMAMA-registered exporters
Electric Two-Wheeler Any motor power CBU or CKD Reduced / Exempted ~20 to 45% combined Any registered EV importer or assembler
Category 1 vs Category 2: Category 1 manufacturers are those with substantial local manufacturing investment and higher value-addition commitments. They receive significantly preferential CKD duty rates as an incentive to deepen domestic manufacturing. Category 2 manufacturers benefit from CKD access but at less favorable rates. The distinction is determined by BIDA and Ministry of Industries evaluation.

What the Numbers Mean in Practice

An imported CBU 150cc motorcycle carrying 150 percent plus total incidence effectively means the landed cost doubles before any dealer margin or retail markup. For manufacturers assembling CKD units, the 45 to 60 percent total incidence is still significant but workable. Category 1 manufacturers assembling the engine component locally can bring costs down by a meaningful 2 percent on commuter bikes since engines represent roughly one-third of total costs. The practical implication: local assembly is not just preferred, it is almost commercially mandated by the duty architecture.

The Frustration Point

Industry players have raised a consistent grievance: locally assembled CKD units are not eligible for the extended 375cc domestic-use permission. This means a company cannot import 375cc CKD parts, assemble them locally, and sell to consumers unless they have a full-scale local manufacturing footprint. Market testing via CKD assembly before building a factory is not permitted under the current framework, which some operators argue creates a catch-22 for investment decisions.

Regulatory Friction

BRTA and Ministry:
The Barriers You Need to Know

Bangladesh's motorcycle sector is supervised by multiple overlapping authorities. Knowing who controls what, and where the friction points are, separates informed operators from operators caught off-guard.

🏢

BRTA: Type Approval Bottleneck

Every new motorcycle model, including new cc variants or refreshed designs, requires BRTA type approval before registration or sale. The process demands extensive documentation, test certifications, and engineering review. Industry timelines for approval routinely stretch 45 to 90 days, sometimes longer. No type approval: no commercial launch.

BRTA Mandate
🛣️

Highway Restriction: A Live Threat

BRTA has actively recommended banning motorcycles from highways, citing motorcycle involvement in 40 percent of road fatalities in 2025 (7,300 deaths total, Road Safety Foundation data). Highways with service lanes may allow motorcycles. Riders and dealers in highway-adjacent markets face ongoing uncertainty. Pillion restrictions on highways are also under active consideration.

Proposed Restriction
💰

New Annual Tax Regime (FY2026-27)

The government's proposed FY2026-27 budget introduces annual advance income tax on motorcycles for the first time. Under the proposal: bikes up to 110cc remain tax-free. From 110cc onwards, annual taxes range from Tk 2,000 to Tk 10,000 per year depending on engine size. With 4.87 million registered motorcycles, the government targets roughly Tk 15.2 billion in additional annual revenue.

Budget 2026-27
📋

Mandatory Driving License for Purchase

As of 2025, a valid driving license is required at the point of motorcycle purchase and registration, not just for riding. This policy change has measurably reduced the impulsive or informal buyer segment, affecting sales volumes, particularly in rural and semi-urban markets.

BRTA Rule
🏭

Ministry of Industries: Factory Licensing

Any entity seeking to locally manufacture motorcycles must obtain factory approval from the Ministry of Industries, demonstrate investment capacity, facility standards, and a credible value-addition roadmap. BIDA registration and the Ministry of Commerce's import license are separate prerequisites. The process is multi-ministry by design.

MoI Requirement
🔌

Lead-Acid Battery Phase-Out

Lead-acid batteries in electric vehicles were permitted only until 31 December 2025. From 2026 onwards, EVs entering the Bangladesh market must use lithium-ion or comparable advanced battery technology. This has raised entry-level EV prices and created supply-chain adjustment pressure for established brands using lead-acid packs.

EV Regulation

Made in Bangladesh

Brand Spotlight: The Local Pioneer
Leading Bangladesh's EV Manufacturing Charge

Before examining the policy canvas, meet the Bangladeshi company writing its name into that canvas in real time. Nasir Syntax Motors Limited (NSML) is not waiting for the EV future to arrive; it is building it in Tangail right now.

Pure Bangladeshi Brand Local Manufacturing Tangail Production Hub  |  Annual Capacity: 30,000 Units  |  Est. Operations: Active 2025
⚡

Nasir Syntax Motors
Limited (NSML)

"My Syntax. My Freedom." |

From entry-level urban scooters to commuter-focused mid-range EVs, NSML's Tangail-based production hub signals a broader ambition: to make electric mobility practical, affordable, and locally made. As one of the most ambitious pure-Bangladeshi entrants in the EV two-wheeler space, NSML targets mass urban and semi-urban commuters with a diversified product range spanning multiple segments. Rather than positioning EVs as a lifestyle premium, NSML builds around the everyday commuter: office workers, students, and small business owners who need reliable, low-cost daily transport. Local production enables skilled manufacturing jobs, a stronger supply chain, and reduced dependence on imported finished vehicles.

30K Annual Production Capacity
80Ksqft Factory Floor Area, Tangail
15K Electric Two-Wheelers / Year
15K Electric Three-Wheelers / Year
6+ EV Models in Lineup

Syntax EV Product Lineup

Premium
Syntax Gen-Z
2,400W Motor  |  Up to 160km Range  |  Dual Battery
~Tk 1,55,000
Urban
Syntax Cruze-l
1,500W Motor  |  Balanced City Performance
~Tk 1,87,000
Commuter
Syntax Cruze-G
1,500W Motor  |  City and Suburban Rides
~Tk 1,35,000
Syntax Avento
100 to 110km Range  |  45km/h Top Speed
Price TBC
Entry
Syntax Rayo
1,200W Motor  |  Short City Commutes
~Tk 1,18,000
Starter EV
Syntax Lima
1,000W Motor  |  Most Accessible Entry Point
~Tk 1,05,000
🏅
Exclusive International Partnership
Peugeot Motocycles — Bangladesh
NSML holds the exclusive distributorship of Peugeot Motocycles in Bangladesh. This partnership brings world-class European engineering, brand prestige, and a premium product portfolio to Bangladesh, anchoring NSML's premium showroom strategy in Dhaka's key corridors including Gulshan, Banani, and Dhanmondi.
Est. 1898  |  France
📰 Source: Published Feature Report on NSML's Tangail manufacturing hub. Official website: Nasir Syntax Motors Limited.

Electric Vehicle Framework

Bangladesh EV Policy:
Tax-Free Until 2040 and Counting

The "Electric Vehicle Industry Development Policy 2025," finalized by the Ministry of Industries, is Bangladesh's most ambitious mobility document to date. It targets domestic production leadership, reduced import dependence, and a decisive 30 percent EV share in government vehicle fleets by 2030.

2022
Registration Begins
BRTA opens formal EV registration. Green number plates introduced for EVs.
2025
Policy Finalized
EV Industry Development Policy 2025 finalized. Lead-acid battery phase-out completed.
2026
669 Registered EVs
669 EVs officially registered as of May 2026. E-rickshaw pilot launched in Dhaka.
2030
30% Fleet Target
Policy mandates at least 30 percent EV adoption in all government vehicle procurement.
2040
Tax-Free Horizon
Tax exemptions for EV manufacturers and battery producers proposed until 2040.
🏭

Tax Exemptions: Manufacturers and Battery Producers

Domestic EV manufacturers and battery producers are proposed to receive comprehensive tax exemptions through 2040.

Until 2040
🔋

Import Duty Advantage: EV vs ICE

For two-wheelers, EV imports carry significantly reduced duty structures compared to conventional ICE vehicles.

Duty Incentive
🔌

Charging Infrastructure Development

BREB is deploying solar-powered charging stations. Akij Motor, Walton, and Tiger New Energy have initiated hubs.

Infrastructure Push
🇧🇩

Climate Commitment Driver

Transport is Bangladesh's third-largest carbon emitter. Paris Agreement pledge targets material CO2 reduction via EVs.

Paris Agreement

Market Intelligence

Bangladesh 2W Industry:
Jan-May 2025 vs Jan-May 2026

The most current dispatch data paints a nuanced picture. While the full year 2025 recovered strongly (+19.6% YoY), the Jan-May 2026 period shows a -6.75% contraction, with significant brand leader reshuffling.

Jan-May 2025
2,08,592
Units Dispatched
↘
-6.75%
YoY Decline
Jan-May 2026
1,94,502
Units Dispatched
Rank Company Jan-May 2025 Share Jan-May 2026 Share Change (YoY) Momentum
1 Yamaha New Leader 17.69% 22.61% +4.92 pp ▲ Strongest Gainer
2 Suzuki 21.00% 21.69% +0.69 pp ▲ Holding Strong
3 Honda 16.00% 18.40% +2.40 pp ▲ Rising
4 Hero 18.00% 19.34% +1.34 pp ▲ Growing
5 Bajaj 18.00% 14.31% -3.69 pp ▾ Losing Ground
Total 100% 100% pp = Percentage Points

Jan-May 2026 Market Share

Yamaha
22.61%
22.61%
Suzuki
21.69%
21.69%
Hero
19.34%
19.34%
Honda
18.40%
18.40%
Bajaj
14.31%
14.31%

Key Takeaways

🏆 #1 Yamaha
Yamaha leads the market with 22.61% share, gaining the highest +4.92 pp YoY.
62.70% Japanese
Combined share of Japanese brands (Yamaha + Suzuki + Honda) confirms absolute domination.

Brand Landscape

Japanese, Indian, Chinese, European:
Every Player on the Board

🇯🇵
Japanese Brands
Market Dominators
62.70%
Honda
BHL
Livo, CB Hornet, CBR150R. Largest service network.
Assembly~18% Share
Yamaha
ACI Motors Limited
FZS, MT-15, R15 V4. Strong youth positioning.
New Leader~22.6% Share
Suzuki
Rangs Motors Limited
Gixxer 150, SF, Intruder. Strong volume driver.
Volume Player~21.6% Share
🇨🇳
Chinese Brands (EV-Dominant)
Fast-Scaling EV Players
Scaling
Yadea
Runner Automobiles
GT60, M6, Velax. World's #1 EV brand. BRTA approved.
BRTA ApprovedEV Leader
REVOO
Local Distributor
A11 and growing lineup. Urban commuter focus.
100% GrowthEV Co-Leader

Market Entry Playbook

How to Enter Bangladesh's
Automobile Business: The Full Roadmap

Company Incorporation (RJSC)

Register a Private Limited Company. 100% foreign ownership permitted.

BIDA Registration

Mandatory for investment security, work permits, and incentives.

Trade License

基础 commercial operation permit from the local City Corporation.

IRC & VAT Setup

Obtain commercial Import Registration Certificate and NBR VAT BIN.

BRTA Type Approval

Per model requirement. Crucial gateway before commercial sales can start.

Strategic Challenges

The Real Challenges:
Sector by Sector

01
CBU Import Wall: 165cc Ceiling
Navigate It
Partner with an existing local manufacturer or invest in CKD line to unlock the 375cc ceiling.
02
EV Charging Infrastructure Gap
Navigate It
Provide high-quality portable home chargers; leverage battery-swap network models.