A rapid growth in the adoption of Electric Vehicles (EVs), also known as New Energy Vehicles (NEVs) in Nepal, made headlines even in international media like the New York Times. That might partly be due to the Western concerns about Nepal being a market for Chinese EVs. But it is a fact that Nepal has recently been a global leader in EV adoption, with above 70 per cent of new passenger cars being electric. It can be a matter of pride for some Nepalis that their country has beaten the markets like the USA, UK and Germany in EV adoption. Before the COVID-19 pandemic, EVs' annual market share was just 8 per cent in 2019.
The cost and fuel efficiency of EVs and the rapidly growing charging network have made the product favourable to Nepalis. Growing production of hydroelectricity and rapidly expanding solar energy projects, the government's policy to promote EVs with lower customs duty, and excise duty against that of the Internal Combustion Engine (ICE) automobiles are also the reasons.
However, all is not well with the government's policy to promote EVs. Especially in the passenger vehicle segment, it will do more harm than good in the long run. EVs are particularly favourites of the middleclass people. A typical middle-class professional uses his/her EV just to go to and return from the office, and occasionally, for a family trip to a nearby hill station. They mostly drive alone and a growing number of such car owners have contributed to traffic congestion, especially in the Kathmandu Valley, where the roads are narrow, and the number of vehicles and pedestrians is ever-growing. It has also created parking challenges for both the offices and the government. That typical professional reaches home in the evening and plugs in the car for charging at the peak hour when people need electricity to cook, watch TV or use computers for study and meetings.
The car owners are forgetting that the battery in their car has a fixed lifespan. The battery is the largest, most important and most expensive part of the EV and comes with an 8-12-year or up to 300,000 km warranty. But the typical EV owner drives less than 1,000 km in a month and about 100,000 km in eight years. If they miss the optimum use of the battery and its life is compromised, they will not be compensated.
If one is to believe industry insiders like Suhrid Ghimire, President of Continental Trading Enterprise, which sells Kia and Isuzu cars and other vehicles, the EV promotion policy in Nepal is standing its head down and legs up. Contrary to the typical car owner, EV pick-ups, micro-buses and micro-trucks run for more than 12 hours, with many of them running for about 15 hours a day. They reach home late in the evening and plug in for charging when the peak hour of electricity is over. The utility vehicles and micro-buses make the optimum use of battery as well as the electricity that would otherwise go to waste. The government should provide more subsidies and facilities to this segment of EV owners compared to those of passenger cars.
If the country had to reduce the petroleum imports, which have been almost on par with the total exports of Nepal, or substitute with electricity, NEVs should get a favourable policy, but priority should be accorded to the utility and passenger vehicles and financial incentives should be offered in their purchase and operation.
Published in The Rising Nepal daily on 9 July 2026.
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