The import of electric vehicles (EVs) is experiencing a significant surge in Nepal, thanks to the government’s duty waiver on the import of environmentally friendly vehicles.

Data recently released by the Department of Customs shows that a staggering 3,675 units of electric cars, jeeps, and vans made their way into the country in the first five months of the fiscal year 2023/24. This figure is nearly triple the imports recorded during the same period in the previous fiscal year, where 1,353 EVs were brought into the country.

The surge in EV imports reflects the growing popularity and acceptance of clean and green mobility options. The country imported EVs with a combined import value of Rs 9.29bn.

Out of total imports, 2,028 cars have the capacity below 50 kWh. The import value of these cars is Rs 5.81bn. Additionally, 52 units of cars with a capacity ranging from 51 kWh to 100 kWh entered the country during the review period. These cars cost a combined Rs 262.64m. Likewise, 11 units of cars with a capacity ranging from 201 to 300 kWh were imported into the country in the review period. The total import value of these cars is Rs 77m. 

While the import of passenger cars is increasing at a healthy rate, the rate of EV adoption in public transport is very low. According to the Department of Customs 134 units of microbuses with 11-14 seats with a total import value of Rs 414.4m were imported into the country during the review period. Likewise, 56 units of microbuses with 15-25 seats entered the country. The import volume of these microbuses is Rs 187.6m. The majority of these microbuses have been used in public transportation. 

The government formulated Environment-friendly Vehicle and Transport Policy in 2014 setting a target of increasing the number of EVs to 20 percent of total motor vehicles in the country by 2020. While the government missed this target, recent import data shows the automotive landscape in Nepal is undergoing a transformation. 

The passenger car segment is witnessing a significant growth. Nepal had 249 EV passenger cars in 2020/21, which has increased to 4,050 units in 2022/23. 

The government imposes a one percent customs duty, 13 percent VAT, and five percent road tax on EVs with a capacity of up to 50 kWh. Similarly, microbuses with 11-14 seats are subject to a 13 percent VAT, 10 percent customs duty, and seven percent road tax.