The import of electric vehicles has increased significantly during the first four months of the current fiscal year.
According to the statistics of the Department of Customs, electric vehicles, including four-wheeler and three-wheeler worth Rs. 7.2 billion have been imported during the first four months of the current fiscal year 2023/24.
During the review period, 2,787 electric cars, jeeps and vans have been imported. Out of them, 656 electric vehicles were imported in the month of Kartik alone.
The country has imported 3,730 three-wheeler electric vehicles worth Rs. 370 million in the four months of the current fiscal year.
The government has collected customs revenue of Rs. 3.09 billion while importing 2,782 electric four-wheeler vehicles and 3,730 three-wheeler electric vehicles during the review period.
The capacity of most number of imported electric vehicles ranges between 51 kW to 100 kW.
A total of 1,481 electric vehicles with the capacity of 51 kW to 100 kW have been imported during the review period.
Similarly, 1,279 electric vehicles with motor power up to 50 kW have been imported. The number of electric vehicles with more than 101 kW to 200 kW motor power is 27 and above 201 kW is 10.
During the review period, about 1,058 unassembled electric three-wheelers worth Rs. 129 million have been imported.
The import of electric cars, jeeps and vans has increased significantly during the first four months of the current fiscal year as compared to the same period last fiscal year.
The country had imported only 1,018 electric cars, jeeps and vans worth Rs. 2.86 billion during the first four months of the last fiscal year 2022/23.
Out of 1,018 electric vehicles, 990 electric vehicles with motor power of up to 100 kW and 25 vehicles with motor power of more than 100 kW to 200 kW and three vehicles with capacity of more than 200 kW to 300 kW were imported.
During the review period of the current fiscal year, most of the electric vehicles imported into Nepal are Chinese. Around 1,574 vehicles have been brought from China in four months. This is 56 per cent of total import of electric vehicles. According to the Department, around 1,193 electric vehicles were imported from India, 12 from Indonesia, three EV each from Korea and America and two from Germany.
The improved supply of electricity in the country and the concession on tariff on charging EVs by the Nepal Electricity Authority have also contributed to the increase in the import and use of electric vehicles, said entrepreneurs.
According to the statistics of the Department of Customs, in the fiscal year 2020/21, a total of 249 four-wheel electric vehicles (cars, jeeps) were imported while 1,800 four-wheeler electric vehicles (cars, jeeps) were imported in the fiscal year 2021/22 and 4,050 in the fiscal year 2022/23.
Around 6,914 assembled three-wheeler EVs and 459 unassembled three-wheeler EVs were imported in the fiscal year 2022/23.
Similarly, around 6,400 three-wheeler EVs were imported in the fiscal year 2021/22 and 4,250 three-wheeler EVs in 2020/21.
The attraction of people towards the EV with capacity 51 kW to 100 kW is higher than others.
The government is currently imposing only 10 per cent customs duty on the import of electric vehicles of up to 50 kW capacity.
According to the new arrangement in the budget, the customs duty on electric vehicles ranging between 50 and 100 kilowatts has been increased by 5 per cent to 15 per cent. Apart from that, 10 per cent excise duty has also been levied.
The high customs duty charged for 50 to 100 kW EVs has affected the customers because EVs of this category are more suitable for Nepali customers.
