Indian automotive and rail parts maker Omega Seiki yesterday announced plans to invest 100 crore rupees to set up a plant near Dhaka to manufacture electric vehicles.

The initiative will be run by OSM-Bangladesh, a subsidiary of Anglian Omega Group, reports The Economic Times.

Omega Seiki currently has two manufacturing plants in India, located at IMT Faridabad and IMT Manesar, Haryana.

"We trust that our vehicles will cater to an impressive response in the neighbouring country. Bangladesh at present does not have an EV policy but it may change fast," said Omega Seiki Mobility Chairman Uday Narang.

The vehicles manufactured in Bangladesh will be sold under the OSM brand through local partners and franchises.

""With electrification happening fast in automotive markets globally, we see it is time for the Bangladesh market to change as well," said Omega Seiki Managing Director Deb Mukherji.

"The transition in two and three wheelers will be fast as they contribute to the pollution and traffic chaos," he said.

The vehicles will be powered by Li-ion batteries and with powertrains built in Bangladesh through technology transfers from India, he added.

"In due course, we are looking at full localisation in Bangladesh. We would also be looking to export from Bangladesh to global locations e.g. ASEAN, Africa," he said.

Bangladesh has a zero-tax policy for exports to 39 countries.

"This includes India as well and we are looking at selling in the northeast from there," Mukherji said.