The year 2080 B.S. has marked a notable upturn for the Nepalese motoring industry a stark contrast to the preceding years. Electric vehicles (EVs) emerged as a dominant force, securing a larger slice of the market pie. Additionally, the introduction of several new automotive brands bolstered overall market sentiment, indicating a promising trajectory for the industry. This shift underscores a growing acceptance and enthusiasm for new energy vehicles, reflecting evolving consumer preferences and market dynamics.

The expansion of EVs was further propelled by public trust in infrastructure and the availability of competitively priced, world-class products. Significant progress was made in enhancing the infrastructure supporting EVs, including the expansion of charging stations and other related facilities, boosting public confidence in electric mobility.

During this year, the automobile industry also experienced a notable surge in the establishment of vehicle assembly facilities. This trend underscores the growing commitment and confidence of global automobile brands in the Nepalese market. Such investments not only bolster Nepal’s automotive industry but also signal a promising future for the country’s economy, as they foster job creation and technological advancement within the local automotive sector.

Despite various challenges, the Nepalese automotive market adapted to changing conditions and continued its upward trajectory. Let’s delve into the ten most significant headlines that have shaped the automotive industry in Nepal this year:

(In no particular order)

Yatri Motorcycles Becomes the First Indigenous Vehicle to be Registered in Nepal

Yatri’s P-1 was FINALLY registered as the first vehicle produced in Nepal. Yatri Motorcycles was founded in 2017 to prove world-class electric vehicles can be designed, engineered, and manufactured in Nepal. In April 2021, the electric motorcycle manufacturer showcased the pre-production unit of the P-1 dual-sport electric motorcycle. However, the legal inconsistencies and the lack of objectively defined policies complicated the registration requirements for Yatri Motorcycles. Earlier, there was no provision for the registration of ‘Made-In-Nepal’ vehicles in the law. Reacting to widespread public criticism, the Ministry of Physical Infrastructure and Transport finally opened the way to register ‘Made-in-Nepal’ vehicles on April 27, 2023.

New Launches: Electric Vehicles (EVs) Take Centre Stage

In 2080, the Nepalese automobile sector experienced a notable uptick in new vehicle and brand introductions compared to the previous year. Despite this increase, electric vehicles (EVs) continued to dominate the spotlight, mirroring the trend observed in the preceding year.

This year, the showroom floors welcomed a diverse array of electric vehicles (EVs) including the Tata Nexon EV Max, BMW iX3 , BYD Dolphin, Citroen eC3, Audi Q4 e-tron, Seres 3, Seres Mini EV, Tata Tiago EV, MG4 EV, MG Comet EV, Kia EV6, BYD Seal, Omoda E5, GAC Aion Y EV, Tesla Model 3 Highland, and the Deepal S07, among others. Additionally, commercial EV launches came from Foton and SRM.

In the realm of electric two-wheelers, Ather Energy commanded attention with its 450X model, while TVS unveiled the iQube. Evoke Electric marked its debut, and Energica, a high-performance Italian electric motorcycle brand, entered the Nepalese market. Similarly, NIU also launched the Gova F600 electric scooter.

Hybrid vehicles also made waves, with Nissan introducing the X-Trail e-Power SUV and Toyota presenting the Yaris Cross Hybrid.

Furthermore, traditional internal combustion engine (ICE) vehicles saw several new additions, including the Mahindra XUV300 Turbosport, Citroen C3, Mahindra Scorpio N, Honda City Hybrid, Suzuki Fronx, Jimny, Nissan Magnite AMT, Honda Elevate, Skoda Slavia, Kia Sportage X-Line, and Tata Punch.

Additionally, a variety of new two-wheelers hit the market, such as the Yamaha Aerox 155, Yezdi motorcycles, Yamaha Ray ZR 125 Hybrid, Royal Enfield Classic 350 and Scram 411, Pulsar NS160 and NS250, Zontes 310T, Royal Enfield Hunter 350, Honda Dio 125, TVS Ronin, Zontes ZT125-U, TVS Apache RTR 160 4V FI SE, Street Rally 125 FI hybrid, Royal Enfield Meteor 350, Honda SP125, and the 2024 KTM 250 Duke, among others.

Budget 2080/81 – A Mixed Stance

Budget 2080/81 presented a mixed stance on electric vehicles (EVs) and motorcycles, reflecting nuanced adjustments in taxation policies. In the fiscal year 2023/24, the government opted for a dual approach towards EVs. It has augmented excise duty and raised customs duty for electric cars ranging from 50 to 100 kW— conversely, EVs exceeding 100 kW witness a revised taxation framework aimed at enhancing affordability.

In parallel, the government’s budget introduced a favorable alteration in the taxation structure concerning motorcycles within the 200cc-250cc range. Notably, the excise duty was slashed from 80 percent to 60 percent, signaling a tangible reduction. This adjustment prompts several manufacturers to subsequently lower the prices of their motorcycles, aligning with the altered tax scheme and potentially stimulating consumer demand.

Hero MotoCorp Joins Hands With CG Motors

Hero MotoCorp announced its plans to establish an assembly facility in Nepal through a collaboration with CG Motors. This marked a significant shift in the distribution landscape for Hero MotoCorp in Nepal, with CG Motors stepping in as the new distributor.

In the past, Hero MotoCorp’s distribution in Nepal was handled by NGM, operating under the Jyoti Group, with both Hero and the Jyoti Group having a longstanding business relationship spanning over 35 years. However, when Hero decided not to renew NGM’s dealership due to reported low sales figures, the matter escalated into a legal dispute that reached the court. Amidst this situation, several business entities sought to secure the Hero dealership, but ultimately, CG Motors emerged successful in obtaining the dealership rights.

Expansion of Assembly Facilities

Assembly plant expansion is on the rise, reflecting a burgeoning demand for motorcycles in Nepal. Royal Enfield joined the fray with the inauguration of its new Local Assembly Unit and CKD facility in Simara (Bara), marking its fifth such facility globally. The facility, spanning over 1 lakh square feet, boasts modern infrastructure and a capacity to assemble 20,000 units annually. It kicked off its operations by assembling the latest models, the Classic 350 and Scram 411, signaling a commitment to localizing production.

Following suit, Syakar Trading Company established its assembly plant in Bhairawaha for Honda Motorcycles and Scooters. This venture, backed by an investment of Rs 150 Crore, occupies a substantial area of 220,000 square feet. The plant is geared to churn out 100,000 motorcycles and scooters annually, addressing the burgeoning demand in the market.

These expansions underscore a growing trend of automotive companies investing in local assembly units to meet the evolving needs of consumers while fostering economic growth in the region.

NADA Auto Show 2023 Lifts Spirits in the Automotive Industry

The 2023 NADA Show show spotlight was on electric vehicles, capturing the highest number of bookings and enquiries. Numerous brands showcased both new and previously launched electric vehicles, making the 15th edition of the NADA Auto Show stand out due to the prominence of electric vehicles. The participating companies used the auto show as a platform to introduce new models of electric vehicles. Additionally, numerous companies unveiled new car models, and electric vehicles garnered significant attention from consumers.

The exhibition featured a wide range of vehicles, from two-wheelers to cars, passenger vans, and small trucks. It included a total of 120 stalls of various brands, along with tires, lubricants, spare parts, accessories, auto components, and garage equipment. These stalls comprised four-wheelers, two-wheelers, commercial vehicles, banks and financial institutions, and stalls offering spare parts, tire lubricants, components, and accessories.

Imports of EVs Triple in Growth

The current fiscal year has witnessed electric vehicle imports surpassing three times the figures from the same period in the previous fiscal year. The country has imported more than 6400 units of electric cars, jeeps and vans worth more than Rs 15 billion from mid-July 2023 to mid-March 2024 (Shrawan-Falgun) of the current fiscal year. According to the data published by the Department of Customs (DoC), 6,435 units of EVs (Electric Vehicles) were imported in the eight months of the current fiscal year.

During these months, the nation brought in 2,746 electric vehicles with a capacity of up to 50 kW and 3,594 EVs with a capacity ranging from 51 kW to 100 kW. Similarly, Nepal imported 75 four-wheeler EVs with a capacity of 101 kW to 200 kW, and 20 EVs with a capacity ranging from 201 kW to 300 kW.

Karan Chaudhary Assumes Presidency of NADA Automobiles Association of Nepal (NADA)

The 47th Annual General Meeting of the NADA Automobiles Association of Nepal (NADA) in Kathmandu, elected Karan Chaudhary as the President of the organization. Karan Chaudhary, Executive Director of CG | Holdings, was unanimously chosen as the new President of NADA. Chaudhary serves as the Managing Director of CG | MotoCorp, specializing in the sale and distribution of Maruti Suzuki vehicles in Nepal.

Nepal Welcomes Its First Hydrogen-Powered SUV

Hydrogen cars have made their debut in Nepal for the first time, as the Green Hydrogen Lab, under Kathmandu University, with technical support from Nepal Oil Corporation, has imported the Hyundai Nexo hydrogen-powered SUV along with a refuelling station. This initiative aims to assess the feasibility of hydrogen-powered vehicles in Nepal.

Kathmandu University’s Green Hydrogen Lab specializes in studying and conducting research in the field of hydrogen energy. Approximately three years ago, Nepal Oil Corporation and Kathmandu University signed an agreement to support research in hydrogen energy, with the Corporation pledging Rs 5 crore for this purpose.

New Milestones

India’s leading SUV manufacturer, Mahindra, crossed yet another milestone with over 5000 of its Scorpio-based pickup truck, Scorpio Pik-Up, in the Nepalese market.  Similarly, the TVS Ntorq also crossed the 1 lakh sales milestone this year. In 2018, the TVS Ntorq 125 made its debut as Nepal’s first Bluetooth-connected scooter, quickly earning the title of the fastest-selling scooter. Its popularity surged due to its striking design and integrated technology, paving the way for expanded avenues in customer choice, and marking the inception of a new era of advanced scooters.