Surge in electric vehicle imports reflects growing consumer interest

KATHMANDU:  The burgeoning interest in electric vehicles (EVs) is evident as the import of electric vehicles in Nepal has nearly tripled in the first six months of the fiscal year 2023-24 compared to the same period last year.

Data from the Department of Customs reveals that electric vehicles worth over Rs. 13 billion have been imported during the initial half of the current fiscal year. This includes a total of 5,107 electric cars, jeeps, vans, and three-wheelers.

During the review period, 1,421 four-wheeler electric vehicles were imported in Poush, 899 in Mangsir, and 656 in Kartik. The country has also seen the import of 5,035 three-wheeler electric vehicles worth Rs. 414 million during the same period.

The government has collected customs revenue of Rs. 5.84 billion from the import of 5,107 electric four-wheelers and 5,035 three-wheelers. Notably, the electric vehicles with a motor power capacity ranging from 51 kW to 100 kW have been the most imported, totaling 2,970 units.

In comparison to the last fiscal year, where 1,749 electric cars, jeeps, and vans worth Rs. 4.92 billion were imported during the first six months, the current fiscal year showcases a significant surge in the import of electric vehicles.

The statistics from the Department of Customs highlight the evolving trend, with 249 four-wheel electric vehicles imported in the fiscal year 2020-21, 1,800 in 2021-22, and 4,050 in 2022-23. Additionally, around 6,914 assembled three-wheeler EVs and 459 unassembled three-wheeler EVs were imported in 2022/23.

The increased attraction towards EVs with a capacity of 51 kW to 100 kW is notable. However, recent budgetary adjustments have seen an increase in customs duties on electric vehicles with capacities between 50 and 100 kilowatts, now standing at 15 percent, along with a 10 percent excise duty. This highlights the government’s ongoing efforts to incentivize and regulate the electric vehicle market in Nepal.