KATHMANDU, June 4: The authorized distributor of BYD EVs in Nepal, Cimex Inc. Pvt. Ltd. has shown concern regarding the recently revised taxation which has resulted in a drastic increase in the prices of EVs sold in Nepal.
According to a statement issued by the company, the revised taxation demonstrated a major policy departure from the government which set a dangerous precedent not only in the eyes of investors but also the general public.
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Electric vehicles constitute a small 5% market share of the total automobile industry in Nepal. In FY 2021/22, 1400 (approx.) EVs were imported while the numbers for non-electric vehicles were 15000, which highlight the initial adaptation of electric vehicles.
However, the statement stated that with the proposed new taxation, there won’t be any motivation to buy EVs for the end-user reflecting revenue loss to the government, more adaptation of ICE vehicles, and subsequent use of fuel. This contradicts the government policy of adaptation of electric vehicles and increases the domestic consumption of electricity.
Similarly, continuation of favorable electric vehicle policies means Nepal can demonstrate flexibility in the adoption of EVs within one or two years and this new technology can be localized further giving Nepal's first-mover advantage. In that time, Nepal can nourish this innovative technology to develop its capacity for assembling, manufacturing, and producing, which in itself is an undeniable advantage.
Nepal can use this to portray its image in the global arena as its commitment to fighting climate change, aggressive adoption of new technologies, and an opportunity to localize new sustainable technologies like EVs.
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