Dhaka: Local battery manufacturers are facing an uneven competition because of the mushrooming growth of unauthorised Chinese factories of such products in the country.

According to the industry insiders, about 30-35 unauthorised Chinese manufacturers are now engaged in the production of electric vehicle (EV) batteries grabbing about 50 percent market share of 1.2 million units’ battery market across the country.

They said easy bikes (electric three wheelers) use these batteries, which are now 450,000 in numbers, posting an annual increase by 30,000.

The Chinese brands against whom allegations are raised include Dimitri, Datai, H-power, Extra Power, Fang Yang, Double Power, Eilong, Fungyan, ATL, Power Plus, SR Plus, Typhoon, Power Max, Trojan

Power, Heng Li, ZT Plus, Viking, Herculics, King Power, Hien Power, Kin Power, New Power, Lotus, Lotus A+B, Pacific Power, Max power, Alpha, Appolo and Viking.

These Chinese battery manufacturers in connivance with some local unscrupulous businessmen having no license from any authority set up their makeshift factories in rural areas, particularly in Gazipur and

other adjoining areas.

They just produce such EV batteries and sell those in local markets without paying any tax like value added tax (VAT) or excise duty or supplementary duty.

But, a local manufacturer has to pay Tk 2,163 on the sale of a 120TL battery costing Tk 7800. But, the so-called Chinese factory owners can offer such battery at a price of between Tk 5000-6000 as they do not pay any tax to any authority.

“This huge gap between the prices of local and Chinese brands is pushing the local battery manufacturers into an uneven competition,” said Munawar Moin, president of Bangladesh Battery Manufacturers Association (BBMA).

He said the government is losing revenue amounting to Tk 240 crore every year from the battery sector due to these illegal manufacturers.

According to sources in the industry, the Chinese manufacturers import various components of EV battery from China through under-invoicing and produce batteries in their makeshift factories and directly sell those to local markets for ‘easy bikes’.

“An investigation by the Customs Intelligence department has proved this and it finally introduced the weight-based import of different batter components instead of quantity based-one,” a source told UNB wishing anonymity.

Joint Commissioner of Chittagong Customs House Rezaul Karim admitted it saying the under-invoicing has stopped following new rules introduced in the current budget.

But the local industry owners said this initiative cannot fully stop the illegal business of Chinese batteries now being produced in the country with different brand names.

Lokman Hossain, owner of local Panna Battery industries, said if anyone wants to set up a battery factory, he or she has to take a number of licenses from different authorities including Department of Environment, BSTI, and local administration.

Secondly, he said, setting up a battery factory needs a big land to meet different compliances of the government. “But the Chinese manufacturers hardly bother about that.”

Even, they do not need to invest any money to buy a land for setting up factories since they produce batteries on a rented land with makeshift house, Lokman added.

In case of any drive from the authorities concerned, they either instantly shift their factories or manage them with money, he said.