Runner Automobiles has advanced plans to manufacture electric vehicles (EVs) of Chinese automaker BYD in Bangladesh following the agreement between the two companies announced in March. The project would expand Runner's operations beyond its existing two- and three-wheeler business.

Runner has completed a technical agreement with BYD following a feasibility study, enabling further work towards local production of BYD electric cars.

In March, Runner said it had signed a "master supply and manufacturing" agreement with BYD Auto and planned to establish a facility in Bhaluka, Mymensingh, to assemble and paint EVs. At the time, the company said the project was in its initial stages, with the factory layout, supply chain and total investment yet to be finalised.

According to a disclosure on the Dhaka Stock Exchange website today, Runner will invest in factory expansion and machinery for EV manufacturing. The company will continue to import and market BYD vehicles until local production begins, according to a Runner official.

BYD entered the Bangladesh market through imports in 2024, with CG-Runner Bangladesh, a concern of Runner Group, serving as its local distributor. Local manufacturing would provide BYD with a production base in Bangladesh and allow Runner to begin local EV production.

The development follows Runner's earlier plans to use BYD's technical support to localise production. Under the initial agreement, BYD was expected to provide technical assistance, including engineers and technicians to train local personnel. Runner had also said local assembly could reduce costs, although it cautioned that immediate price reductions could be limited by continued reliance on imported raw materials and the costs of painting and assembly.

The development comes as Runner's financial performance recovers from a downturn. Standalone revenue rose 28% to BDT 5.63 billion (US$ 46 million) in FY2024-25, while operating profit increased to BDT 1.1 billion. Net profit recovered to BDT 70 million from a loss of BDT 700 million in FY2022-23.

However, high financial expenses continue to affect earnings, adding to the financial requirements associated with the EV manufacturing project.

Runner's board has approved raising BDT 2.5 billion through preference shares, with at least half of the proceeds to be converted into equity later. The company also plans to double its authorised capital to BDT 4 billion from BDT 2 billion, subject to regulatory approval.

The company had previously said that the local production project could create approximately 300 jobs and support skills development as manufacturing capacity increases. It had also projected that full-scale production could be reached within a year, subject to economic conditions.

For BYD, local manufacturing would establish a production base in Bangladesh after the Chinese EV maker entered the market through imports in 2024.

Following the latest developments, Runner Automobiles' share price rose 1.53% to BDT 53 today, compared with its 52-week high of BDT 54.