Social Media
The import ban and liquidity crunch crippled the Nepalese automotive industry throughout 2079 B.S. In spite of the import restrictions being lifted after eight months, it failed to provide any respite to the industry, courtesy of the high-interest rates. Add to it the overall consumer sentiments and the changing marketing dynamics, and it is clear that the Nepalese auto sector has hit a major roadblock.
Nevertheless, we take a look back at the biggest 12 headlines that defined the Nepalese automotive industry in 2079 B.S.
THE BIG BAN!
The biggest headline that dominated the Nepalese automotive landscape in 2079 B.S. was the ban on the import of private cars and two-wheelers above 150cc. The ban which was imposed in mid-Baisakh was repeatedly extended citing depleting foreign currency reserves. From auto dealers announcing temporary layoffs to them coming out on the streets, the import ban deepened the crisis in the auto sector. Although the ban was lifted after a period of eight months, the policies implemented by the central bank still remain a major roadblock for the already crippled Nepalese automobile industry.
Budget 2079/80. Quite a Blow
With the objective of giving high priority to industry establishment and production as the main means of import substitution, the government announced to levy only 1 percent customs duty on spare parts or raw materials for the manufacture of electric rickshaws, motorcycles and scooters.
Similarly, it also announced to provide incentives for companies looking to establish an electric four-wheeler industry in the country like a 40 percent income tax exemption for electric car assembling industries on their earnings for five years, and a waiver of 50 percent on the excise duty and 25 percent on customs duty for companies looking to assemble combustion engine cars.
However, it slapped additional excise and customs duties on electric vehicles with more than 100 kW capacity and for motorcycles above 200cc leading to a massive price increment on EVs above 100 kW. Not only that but the government also announced to increase the excise duty on cars above 1500cc by 5 percent.
Bagmati Province Imposed Yearly Tax On Small Electric Cars
The Bagmati Province government slapped a yearly tax on electric cars making peak power below 50kW. Earlier, electric cars which made a peak power of less than 50 kW were exempted from the annual tax.
According to the new ordinance which came into effect, electric cars making 10 kW - 50 kW will attract an annual tax of Rs 5,000, Rs 15,000 for electric cars between 50 kW - 125 kW, Rs 20,000 for electric cars between 125 kW - 200 kW, and Rs 30,000 for electric cars above 200 kW.
Similarly, the provincial government also imposed a yearly tax on electric public transport. The tax was fixed at Rs 3,000 for EVs between 20 kW above 50 kW, Rs 5,000 for 50 kW to 125 kW, Rs 10,000 for 125kW to 200 kW and Rs 15,000 for 200 kW and above.
Fuel Prices Reached a Record High
The import ban wasn’t the only thing that grabbed the headlines in 2079 B.S. In Asadh, the prices of petrol and diesel reached Rs 199 and Rs 192 per litre respectively, a first in the history of this country.
Although there have been numerous dialogues and policy recommendations to move towards renewable energies, petroleum is still the second-largest energy fuel in the country. At the time of writing this article, the fuel prices are Rs 175 per litre (Petrol) and Rs 165 per litre (Diesel) respectively.
There’s Always a Silver Lining
Although the import ban caused severe disruptions in 2079 B.S., there were a handful of new launches which provided a glimmer of hope. 2079 B.S. was definitely the year of the EVs.
The vehicles that made it to the showroom this year were the Hero Xpulse 200 4V, Yamaha R15M/V4 and FZ-X, Jawa 42 Sports Stripe, NETA V, Tiggo 8 Pro, New TVS Apache RTR 160 4v RTFi, Tiggo 7 Pro, Tiggo 8 Pro, Nexon EV Dark Edition, GWM Wingle 5, Suzuki Avenis, Foton Tunland E+, Henrey Mincar, Pulsar NS 125, All-new Ford Ranger and Ranger Raptor pickup trucks,Wuling Air EV, TVS Ntorq Race XP, BYD Atto 3, Pulsar N250/ N160, Zontes ZT155-UI, Mahindra XUV700, Foton electric passenger vans, Next-gen Ford Everest, Suzuki Grand Vitara and Brezza Facelift, Maxus, Venue facelift and Grand i10 facelift, among others.
On the electric two-wheelers segment, NIU and Segway were at the forefront with their offerings. NIU introduced its Gova G5, UQIGT and MQIGT Electric Scooters. Similarly, Segway launched the E125, E110L, E100 and N100 electric scooters. Furthermore, the Indonesian brand Gesits also made its official debut in Nepal. The electric two-wheelers market also saw the introduction of Sunra. There were also new brands like Horwin, Aima, Raft, Komaki, Jumbo, Joy-E, and Okaya EV, etc.
For the First Time in the Country, There Was an Expo on EVs
The NADA Auto Show was back in business after three years, albeit in a slightly different avatar as a result of the import ban. NADA Automobiles Association of Nepal (NADA) organized the first-ever EV Expo in Nepal, an exclusive exhibition on electric vehicles, components and ancillary.
The NADA EV Expo 2022 hosted the participation of seven 4-wheeler brands, one 3-wheeler brand, sixteen 2-wheeler brands, three brands of tyres, two brands of battery, nine companies of garage equipment, components and Nepal Drives media along with four financial institutions.
The inaugural edition of the EV Expo saw a footfall of more than 30,000 EV enthusiasts and visitors. Similarly, more than 250 units of various EVs were also booked during the four-day event which was held between Asoj 6-9 at the capital's Bhrikutimandap Exhibition Centre.
Owning a Car is An Expensive Affair in Nepal
According to the data published by National Population and Housing Census 2021, only about 3.1% of Nepali households own a four-wheeler (204,990 out of 6,660,841). The vast majority of Nepalese still own two-wheelers - about 27.3% own a two-wheeler (1,816,121 out of 6,660,841). Meanwhile, about 35.2% (2,347,433 out of 6,660,841) own a bicycle.
The findings of the census, conducted among 6,660,841 families, or households, were released on Chaitra 10. It was carried out by the Central Bureau of Statistics.
Jagdamba Motors TVS, the sole authorized distributor for TVS two-wheeler in Nepal, conducted a one-of-a-kind international marquee ride for TVS Apache owners that saw a group of Apache riders riding from Kathmandu to Mysuru, India, via Goa. The 21-day ride which covered more than 6500 km long is the longest-ever ride organized by any automobile company in Nepal.
The main highlight of the event is to attend TVS' flagship biking festival, TVS MotoSoul, in Goa.
The Rise of Public Charging Stations
In order to promote the use of electric vehicles and increase the efficiency of the energy sector, Nepal Electricity Authority (NEA) kickstarted a campaign to establish fast vehicle charging stations in major cities and highways of the country. The EV charging stations which are already operational in Ratnapark (Kathmandu) and Bharatpur (Chitwan) are gradually being established in other parts of the country as well.
Every charging station being constructed by the authority will be equipped with a 142 kW charger, a 50 kVA transformer for power supply, and an online charging system. Fast charging 60/60 KW DC and 22 KW AC chargers will be placed at the charging stations depending upon the location. Similarly, NEA has also developed the necessary NSP (National Service Provider) system has been developed to make online bookings. The authority's mobile app can be used for payment of the charge amount.
