Runner to assemble BYD electric vehicles

Runner Group’s subsidiary, Runner Automobiles PLC, is set to assemble electric vehicles (EVs) of Chinese automaker BYD in Bangladesh, marking a significant step forward for the country’s automobile industry.

The company signed a “master supply and manufacturing” agreement with BYD Auto Industry Company on Friday, said Hafizur Rahman Khan, chairman of Runner Group.

The decision was also approved at a board meeting held the same day, where the company reviewed its current business situation, he added.

Runner Automobiles aims to bring locally assembled BYD vehicles to the market within the next year.

In a disclosure to the Dhaka Stock Exchange (DSE) yesterday, the company said the strategic partnership is expected to create new opportunities for Bangladesh’s automotive sector by facilitating local production and enabling technology transfer.

BYD, one of the world’s leading EV manufacturers, officially entered the Bangladesh market in 2024. Its local distributor has since been CG-Runner Bangladesh Limited, a concern of Runner Group.

As part of the new initiative, Runner Automobiles plans to establish a manufacturing facility in Bhaluka, Mymensingh, to assemble and paint EVs in collaboration with BYD. The company will receive full technical support from the Chinese automaker to localise production and reduce costs.

Shanat Datta, chief financial officer of Runner Automobiles, said the company is still in the early stages of implementation.

“We are currently in the initial phase following the agreement. Our next step is to finalise the layout and supply chain. Once the design is confirmed, we will be able to determine the total investment,” he said.

Datta also highlighted the potential for cost reductions through local assembly. Currently, importing completely built units (CBUs) involves a duty of around 93 percent, which could fall to about 40 percent in the initial stages of local production.

However, he cautioned that immediate price reductions may be limited due to continued reliance on imported raw materials and the high cost of painting and assembly processes.

“We cannot expect costs to fall overnight, but we will try to pass on as much benefit as possible to customers through localisation,” he added.

The project is expected to reach full-scale production within a year, subject to favourable economic conditions. BYD will provide comprehensive technical support, including sending engineers and technicians to train local personnel.

Datta said the initiative would also contribute to skill development in a relatively new industrial segment in Bangladesh, with the facility expected to create around 300 jobs.

Runner Automobiles remains optimistic that as production ramps up and prices become more competitive, the adoption of electric vehicles in Bangladesh will accelerate.