January 17: The general public’s attraction towards electric vehicles (EVs) has increased in Nepal. The sales ratio of EV and petroleum vehicles was 50/50 between April 2021 to December 2022, shares Ajit Narayan Singh, sales manager of Tata Motors. He claimed that 80 per cent of the sold EVs were Tata Motors vehicles.

The turnover of the automobile sector has dropped significantly due to the import ban, the economic situation of the country, the liquidity crisis and the policy adopted by the Nepal Rastra Bank. According to Singh, the sales of all vehicles have decreased by 70 per cent compared to the previous fiscal years.

Singh said that although the total volume of vehicle sales has decreased, the sales of EVs have increased by 50 per cent. He credited the government for the increase in sales of EV. He added, “After the government reduced the tax in July 2021, the EV sector was boomed. Soon after, the sales volume increased and the market situation improved. If there was no problem with liquidity, the situation would have been different.”

According to Singh, his customers say that EVs are cheaper to buy and more comfortable to drive than petrol/diesel vehicles. He added that in a survey conducted by the company, customers said that they would not buy cars run by fossil fuel anymore. 

"Both men and women had the same reaction," said Singh.

EV users claim that its maintenance costs are three times cheaper than that of the internal combustion engine (ICE) vehicles. 

“Running vehicles on fuel costs an average of Rs 14 per kilometer but an EV travels 200 kilometres for just Rs 300. That means the cost of covering one kilometer is Rs 1.5.

Singh said that if the government has a positive attitude towards this sector, 50 to 60 per cent of the total sales of four-wheelers will be that of EVs.

Nepal is importing petroleum products in large quantities. A large amount of foreign currency is being spent on this. On the other hand, there is a situation where the electricity produced in Nepal is not consumed during the rainy season and is wasted.

He said that the government should further promote EVs to increase the internal consumption of electricity as the production is projected to rise in the near future.

For this, he said, the government should provide subsidies for EVs, subsidies for houses, subsidies for charging stations, and free parking for EVs.

The price of EVs is expensive in the international market. However, experts said that with the development of technology, its price may drop drastically.

A few months ago, the Nepal government banned the import of luxury items including ICE cars for private use. Now the ban has been lifted. Although the import of vehicles has been opened, the sale of the automobile sector has not improved.