Electric Vehicle Leads Car Import, Occupying 65 Percent Of Market

Electric Vehicle Leads Car Import, Occupying 65 Percent Of Market

July 9, 2024, 8:10 a.m.

The landscape of the Nepali car market has evolved significantly, with electric vehicles (EVs) now accounting for 65 percent of the market, as traditional fuel cars struggle to sell. The introduction of the Mahindra (Reva) electric vehicle in Nepal around 2010 marked the beginning of this shift.

Today, the Nepali car market is dominated by EVs, with over two dozen brands now available. This includes well-known international brands like Tesla, Audi, BMW, BYD, Tata, MG, Kia, Hyundai, Omoda, Dipl, Ceres, Neta, and more.

Over the course of the current fiscal year, up to November, EVs made up 65 percent of the imported car market, while fuel cars made up just 35 percent. During this time, 6,991 fuel cars valued at 8.83 billion rupees were imported, in contrast, EVs valued four times that amount were also brought in. In the same period, 12,000 and 939 electric vehicles valued at 33 billion rupees were imported, indicating a clear dominance of EVs in the fuel car segment.

The electric car market in Nepal has grown by two years, with Chinese brands leading the pack. There's also a growing competition among electric car manufacturers to offer vehicles with longer ranges and superior features at affordable prices.

The rise of EVs in Nepal can be attributed to the lower cost of electricity compared to fuel, and the government's efforts to reduce EV taxes and offer 80 percent rebates to buyers have further boosted their appeal.

Only half of the available loan is accessible for vehicles that use fuel. Electric vehicles (EVs) make up 65% of all vehicle imports, yet the majority of the revenue is generated from vehicles fueled by gas. The government has managed to gather 16.85 billion rupees from the import of gas-fueled vehicles. On the other hand, the revenue generated from importing electric vehicles amounts to 14.7 billion rupees.

When it comes to paying customs and excise taxes, electric vehicles face minimal tariffs, which is reflected in the income collected. Looking at the figures from May up until now in this financial year, there hasn't been a notable shift in the import of gas-fueled four-wheeled vehicles.

The emerging trend in Nepal's new vehicle market for the year includes a substantial increase in the import of electric vehicles. While only 123 units of electric vehicles were brought in July, the numbers rose to 3,000 and 391 units in May.

For motorbikes and motorcycles, the proportion of electric vehicles is quite small. Over the first eleven months of the year, around 1.43 lakh and 940 units of motorcycles, including both electric and gas-powered ones, were imported. However, the electric share is merely 16%.

These figures indicate that gas-powered vehicles still dominate the market for motorcycles, with over 1 lakh and 305 units of bikes and scooters valued at 14 billion and 25 crores rupees imported. From this, the government has managed to collect revenue of 14 billion and 63 crore rupees.

During this time frame, the import of electric two-wheelers saw an increase, with 20,634 units brought in. This has resulted in the government earning 694.3 million rupees from these vehicles, which were worth 2.11 billion rupees.

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