Nepal sees 78% surge in EV imports in first 2 months of FY 2024-25

KATHMANDU: 1,602 electric vehicles (EVs) were imported into Nepal in the first two months of the current fiscal year (2024-25), according to the Department of Customs. The government received Rs 2.31 billion in revenue from the importation of EVs valued at Rs 3.82 billion during the months of Shrawan (mid-July to mid-August) and Bhadra (mid-August to mid-September).

The majority of the imported electric vehicles (EVs) were 938 jeeps, cars, and vans with capabilities ranging from 51 to 100 kW. Additionally, 560 EVs with capacities ranging from 0 to 50 kW were imported. The noteworthy rise in imports suggests that the EV market in Nepal is growing.

While car imports of Rs 897 million were made during Shrawan, EV imports in Bhadra alone totaled Rs 2.71 billion. There was a 78% rise in total EV imports at this time last year, with 898 EVs worth at Rs 2.407 billion coming in. In comparison to the prior year, the government has also earned a substantial rise in revenue from the import of electric vehicles.

The impending Dashain and Tihar festivals have been attributed for the import increase, which resulted from businesses raising their imports in expectation of increased demand. In Bhadra, 1,221 electric cars were imported, a substantial rise over the 381 imported during Shrawan.

This increase in imports was partially caused by the NADA Auto Show, which took place from August 27 to September 1. Dealers are only anticipated to fill about 60% of the 4,200 automobiles that were reserved specifically for the event. Furthermore, vendors still hold merchandise that was in place prior to the budget's release.

1,125 EVs have been imported into Nepal from China in the last two months, making China the primary supplier of EVs. The Nepali market is dominated by well-known Chinese companies including BYD, MG, Omoda, Deepal, Seres, Nammi, and Neta.

India, which contributed 475 EVs during the same time period, is another major provider. This demonstrates how Nepal's imports of electric vehicles are becoming more regionally diverse.

In addition to electric vehicles, the data indicates that 1,225 four-wheelers fueled by fossil fuels were imported into Nepal. This suggests that traditional vehicles continue to have a significant market share.