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With the new fiscal year budget being announced today, the spotlight is on the automotive industry, particularly the electric vehicle (EV) sector.
We hope the budget will continue to support electric mobility despite rumours of a potential new "Battery Management Fee," which could add a 5-15% tax. The government should avoid populist measures and focus on a growth-oriented budget. Stability in regulations and continued investment in good policies and infrastructure are crucial because new regulatory norms could increase costs and create disruptions.
Current subsidies for electric vehicles should continue, and customs duties on EV equipment should be reduced. Emphasizing a green public transportation system with robust charging infrastructure is essential for widespread EV adoption.Similarly, a policy on battery disposal is also needed to address the influx of low-quality EVs, particularly two-wheelers, which could create future problems. Setting quality standards for battery disposal and EV repair workshops is essential.
To strengthen the EV ecosystem, the budget should support the development of charging infrastructure, encouraging the adoption of EVs across the country. Aligning with global trends, this support can boost sustainable mobility investments. The Nepal Electricity Authority (NEA) should work with the government to simplify the process of establishing charging stations by EV importers. Increasing the number of safe, organized charging stations is necessary, and developing this as a business model with private sector collaboration is vital.
Lastly, the government should continue promoting manufacturing facilities in Nepal and focus on robust infrastructure development in the upcoming budget.
