Palki Motors is building the first electric cars in Bangladesh. We take a look at its business model, challenges and aspirations
Priced at around Tk5 lakh, the City Boy is roughly about the size of a CNG and takes about two hours to charge. Photo: Noor-A-Alam
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Priced at around Tk5 lakh, the City Boy is roughly about the size of a CNG and takes about two hours to charge. Photo: Noor-A-Alam
When Mustafa Al Momin was a young student of Electrical Engineering at Brac University studying AC motors in one of his courses, he also used to spend a lot of his free time in front of motor repair shops.
An idea sprouted in his mind. He thought to himself, “There are so many old and abandoned cars near police stations; if one would install these motors and give them enough torque, could you make these cars run again?”
It was primarily Momin’s curiosity about rebuilding abandoned cars that led to the idea.
Momin received a scholarship from a university in the United States and left to pursue his education abroad. After completing his studies, he moved back home and landed a stable nine-to-five job with a decent salary.
Photo: Noor-A-Alam
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Photo: Noor-A-Alam
However, that idea stayed, burrowed deep in his mind. He wanted to turn it into a business venture in 2016, but his family was not thrilled about him leaving behind a stable job.
Momin, however, wanted to make a difference in Bangladesh; he wanted to use his idea to help the people of the country.
Momin would do a lot of soul-searching during this period and spent his time amongst the CNG drivers. He visited garages, had meals with them, learnt about their lives and even tried living like them. He realised that CNG drivers led very difficult lives, and this is when the idea of Palki Motors – an electric alternative to CNG – was born.
Palki Motors is founded by Momin, who serves as its CEO, and Md Arifur Rahman, who is serving as its COO. They are building the first electric cars in Bangladesh.
“I know it is not easy to build electric cars. You need a lot of funding, and a lot of resources need to be spent on R&D. However, our cars are not designed to compete with private cars, rather, it is targeted towards commercial drivers, particularly the CNG drivers,” said Momin.
Palki is also in the process of setting up its very own factory. Photo: Noor-A-Alam
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Palki is also in the process of setting up its very own factory. Photo: Noor-A-Alam
“CNG drivers spend roughly around 14 to 15 hours working. From the money they make, they must also pay Tk 1,100, which is about 40% of their daily income, to the owner of the CNG, and spend a few hundred on fuel. So we designed our vehicle for them, to make their lives better,” added Momin.
The City Boy prototypes
Momin and Rahman started Palki Motors after the end of the Covid-19 pandemic. Momin is responsible for designing the cars, and Rahman looks after the business side. Presently they have built two working prototypes and are in the process of fulfilling 20 pre-orders.
Priced at around Tk5 lakh, the car is roughly about the size of a CNG, takes about two hours to charge, has the capability of travelling 150 km on a single charge, and can reach a top speed of 45 km/h. A CNG normally sells for around Tk4 lakh and can reach a top speed of 56km/h. A CNG driver will travel around 150km in a day.
The car is quite compact, but it can comfortably seat two people at the back, and two in the front – including the driver. It features a sunroof and air conditioning and an Android infotainment system.
“In Bangladesh, you often have to drive on muddy roads and flooded roads, and we had to take these factors into consideration. Water can easily get into the vehicular system. We chose the components by carefully considering the requirements of the driver, passengers and the market,” said Apal Saha, Mechanical Engineer at Palki Motors.
“Naturally, we want everything – the most powerful and the most beautiful. But we have limited resources, and people will only pay so much for our car. So, we had to strike a balance between everything,” he further added.
“The lives of the CNG drivers are difficult. They spend almost the entire day on the road. They have to endure so much dust and noise. Rainwater gets into the CNG, so we included rolling windows, a CNG does not have air conditioning, so we included one. This car is for people who drive CNGs, Ubers and Pathaos,” explained Momin.
“Our neighbours in Delhi are now dealing with a lot of air pollution. Dhaka is also headed towards the same fate. Contrary to popular belief, CNG-run vehicles also cause a lot of pollution. Electric cars are the answer to this problem,” he added.
CNG vehicles emit a significant amount of CH4, CO and HCHO gases due to partial oxidation; which are harmful to people, animals and the environment.
Challenges of manufacturing cars in Dhaka
Palki has named their car ‘The City Boy.’ These prototypes are built with parts imported from China, Taiwan and various other places. However, Palki is also in the process of setting up its very own factory and manufacturing the cars here.
“There are five sections during the manufacturing process: stamping, welding, painting assembly and inspection. You need a lot of expensive, heavy machinery for stamping. Painting and testing are also expensive. We are availing some of the services from companies who provide these solutions, particularly stamping. This is why we are importing the body from China,” said Momin. “But we are going to be welding, painting and testing the cars in our own factory.”
“The initial issue we faced was finding a place for the factory. Since we are a start-up, we cannot pay high rent. We also needed extra facilities like sewage because we will be painting the cars, etc. But thankfully we have found a place and we will be moving there soon,” said Rahman.
“Since a supportive network is very important for startups like us, we are also trying to leverage the support from the startup ecosystem, including from Youth Co:Lab, an initiative co-led by UNDP and Citi Foundation, which is providing us with tailored mentorship and networking opportunities,” adds Momin.
Is the City Boy road legal?
At the time of writing, these cars are not road legal, but the team at Palki Motors are in the process of acquiring permits for their vehicles. The cars will require a licence to drive, and the team is estimating the AIT, tax and fitness to be similar to a 1500cc car in Bangladesh.
“Apart from setting up the factory and developing our product, we are also in the process of acquiring permits for our vehicles. This is why we have not delivered our orders because we don’t have permission from BRTA just yet,” said Rahman.
“We are working to deliver 20 pre-orders in May, which is our deadline. So far, we have received permission to drive five of our cars on test. We have been applying to BRTA and it is a slow and lengthy process. We will be delivering the car on time, and if the vehicle is not registered during the time of delivery, we will offer to loan out one of our cars which has the permit,” added Momin.
Is the future electric?
Driving the City Boy was a unique experience. Whether the car is more luxurious than a CNG, the answer is a definite yes. The car is cheaper to run, and a lot more efficient than a combustion engine when stuck in traffic congestion.
However, for the target consumers, who normally rent out their vehicles from various garages, Tk5 lakh is a big investment. So, the question still looms whether they are open to the idea of debt financing.
But Momin is hopeful.
As he explained, “If one takes out a loan for five years, it will be easier for them to pay it off with this because the fares will remain the same, but they will be saving money on running the car and maintaining it. The car comes with three years of replacement warranty for the battery.
The motor has a warranty for one year. The buyers will not have to worry about maintenance for the next three years. And with the added income from their savings, it will be a good investment for them.”
“We will all have to die one day, but we want to leave behind a legacy which made a difference in the world and something we are remembered by. I want Palki to be our legacy,” he added.
