Nepal shifts gears as EVs hit 73 percent of 4-wheeler imports

In December 2017, Nepal’s National Planning Commission—tasked with framing the country’s policies and programmes—became the first government agency to buy an electric vehicle (EV). There was a celebratory event on its premises when the commission acquired a long-range BYD e6, manufactured by China’s leading EV company, Build Your Dreams (BYD), for Rs6 million.

Nepal’s EV journey began as early as 1975 with the introduction of Chinese-donated trolley buses in Kathmandu. However, due to poor maintenance and financial constraints, the system shut down in 2009. In 1993, Kathmandu’s streets saw the emergence of battery-powered Safa Tempos (three-wheelers), which replaced the diesel-operated Vikram Tempos. However, privately owned EVs only began to gain momentum in the late 2000s when the Indian automaker Mahindra introduced the Reva model.

Now, Nepal has entered the era of modern EVs.

Sales are booming.

“We sold nearly 3,600 BYD units last fiscal year and expect higher numbers this year, given the growing demand and interest in EVs,” said Yamuna Shrestha, managing director of Cimex Inc., the authorised BYD distributor in Nepal. “The country made significant progress in EV adoption last fiscal year, with EVs comprising around 75 percent of automobile imports.”

Shrestha believes long-term policy stability is crucial if the government aims to achieve net-zero greenhouse gas emissions by 2045. “The government says it wants 30 percent of heavy passenger vehicles to be electric, but we’re currently only at about 7 percent,” she noted.

Last fiscal year, the loan financing cap for EVs was reduced from 90 percent to 60 percent. “We reviewed the banks’ hire-purchase loan data and found no defaults. These abrupt policy changes are counterproductive if the goal is to increase electricity consumption, reduce fossil fuel imports, and reach net-zero.”