The economics of a Dhaka rideshare driver are written in fuel receipts and repair bills. For Mustafa Al Momin, the math was simple. The compressed natural gas (CNG) sedans that dominate the city's streets cost too much to run and maintain. His answer, as an engineer and second-time founder, was to build a cheaper car from the ground up. In 2022, he started Palki Motors, Bangladesh's first domestic electric vehicle manufacturer, with a single goal: to put an affordable EV in the hands of every commercial driver [Net Zero Compare, June 2025].
A wedge of steel, fiberglass, and LFP
The bet is not on high-performance luxury, but on unit economics for a specific, price-sensitive customer. Palki's vehicles, the City Boy passenger car and a small pickup, are designed for the punishing stop-and-go of urban ridesharing and last-mile delivery. They are assembled in Dhaka using local steel and fiberglass, which the company claims makes up 52% of the bill of materials [Net Zero Compare, June 2025]. The specs are utilitarian: an 18-kWh LFP battery pack, a 15-kW motor, and a claimed 150-kilometer range, enough for a city shift. The headline number is the price. At $12,000, Palki says its vehicles offer a 52% lower total cost of ownership over five years compared to a comparable CNG vehicle [Net Zero Compare, June 2025]. For a driver, that is the difference between scraping by and building savings.
The early traction and the long road
The company's public traction is measured in small, hard-won numbers. According to its SET100 profile, Palki has deployed over 24 vehicles which have collectively traveled 1.4 million kilometers, saving an estimated 250 tons of CO2 [Startup Energy Transition, undated]. These early units, a Version 2 model launched in July 2023, provided feedback that is feeding into a Version 3 prototype slated for commercial release in September 2025 [Net Zero Compare, June 2025]. The backing comes from impact-focused investors like Accelerating Asia, which provided a $100,000 investment as part of its Cohort 10 program, and Loyal VC [Energy & Power Magazine, undated]. The company has also won local recognition, including a Green Manufacturing award from the EBL Climate Change Action Awards in 2025 [The Daily Star, 2025].
| Metric | Claim | Source |
|---|---|---|
| Vehicle Price | $12,000 | [Net Zero Compare, June 2025] |
| 5-Year TCO vs. CNG | 52% lower | [Net Zero Compare, June 2025] |
| Vehicles Deployed | 24+ | [Startup Energy Transition, undated] |
| Kilometers Traveled | 1.4 million | [Startup Energy Transition, undated] |
| CO2 Saved | 250+ tons | [Startup Energy Transition, undated] |
| Domestic Bill of Materials | 52% | [Net Zero Compare, June 2025] |
The risks of building a category from scratch
Palki's ambition is to create a market where one barely exists, which brings a unique set of challenges. Bangladesh's EV ecosystem is nascent, meaning the company must navigate everything from unreliable charging infrastructure to import duties on key components like battery cells. While the 52% domestic content is a strength for cost and supply chain control, it also means Palki is responsible for the quality and durability of its own fabrication in a market with limited EV repair expertise. The competitive landscape is currently defined by the absence of other local EV makers, but the real competition is the entrenched incumbent: the millions of CNG and petrol vehicles already on the road. Palki must convince drivers and fleet operators to make a leap of faith into unfamiliar technology, betting their livelihoods on a startup's product. The company's path to scaling beyond a few dozen vehicles will depend on securing larger funding rounds and proving its vehicles can withstand Dhaka's roads for years, not just months.
Back of the envelope: If Palki's 24 deployed vehicles have saved 250 tons of CO2 over 1.4 million km, that's roughly 10.4 tons saved per vehicle, or about 179 grams of CO2 per kilometer displaced. For context, a typical CNG sedan in Bangladesh emits around 120-150 g/km. The math suggests Palki's vehicles are displacing grid electricity that is still partially fossil-fueled, but the climate benefit scales directly with Bangladesh's ongoing greening of its power grid. The real unit economics for the driver, however, are in the fuel bill: electricity at roughly 8 Bangladeshi Taka per kilometer versus CNG at 12 Taka [estimated from public rates]. Over 100,000 km, that's a fuel saving of 400,000 Taka, or about $3,400.
Palki Motors is not trying to beat Tesla or BYD to a luxury buyer. Its target is the humble, ubiquitous CNG taxi, and its weapon is a spreadsheet. For now, the bet looks like the only honest one for the market it serves.
Sources
- [Net Zero Compare, June 2025] Palki Motors is proving that Bangladesh can build its own affordable electric cars | https://netzerocompare.com/articles/palki-motors-is-proving-that-bangladesh-can-build-its-own-affordable-electric-cars
- [Startup Energy Transition, undated] Palki Motors Limited - Start Up Energy Transition | https://www.startup-energy-transition.com/set100-database/palki-motors-limited/
- [Energy & Power Magazine, undated] Palki Motors Accepted into Accelerator Asia’s Cohort 10 with $100,000 Impact Investment | https://ep-bd.com/view/details/article/MTA3Nzg=/article-title?q=palki+motors+accepted+into+accelerator+asia%E2%80%99s+cohort+10+with+$100,000+impact+investment
- [The Daily Star, 2025] Palki Motors: Driving green, driving smart | https://www.thedailystar.net/supplements/climate-heroes/news/palki-motors-driving-green-driving-smart-3837231
- [Loyal VC, undated] Palki Motors Limited | https://www.loyal.vc/portfolio/palki-motors-limited