EV imports surge 7.3 percent in six months

Electric vehicles (EVs) imports went up by 7.3 percent in the first half of fiscal year 2024/25. Data released by the Department of Customs (DoC) shows 5,480 units of electric cars, jeeps and vans were imported into the country during the first six months of the current fiscal year, up from 5,107 in the same period of 2023/24.

Electric cars, jeeps and vans worth Rs 13.1bn were imported in the country in the six-month period of 2024/25. Total import value of electric cars, jeeps and vans in the first six months of 2023/24 was Rs 12.73bn.

This, however, is a slow growth compared to the first half of 2023/24 when EV imports nearly tripled to 5,107 units compared to 1,749 units in the first six months of 2022/23. The total import value during the period was Rs 4.92bn.

The government mobilized Rs 8.16bn in revenue from EV imports in the first six months of 2024/25, compared to Rs 5.67bn in the same period of 2023/24. This represents a revenue growth of 43.91 percent. The rise in revenue has been attributed to the government's decision to increase tax rates on EVs.

The majority of EVs imported this fiscal year have motor capacities ranging from 51 to 100 kilowatts. Specifically, 3,191 EVs with 100-kilowatt capacities and 1,725 EVs with 50-kilowatt capacities were imported during the period. Additionally, 553 EVs with 200-kilowatt capacities and 11 EVs with capacities above 200 kilowatts were imported by mid-January of the current fiscal year.

In the same period of the previous fiscal year, 2,056 units with capacities below 50 kilowatts were imported, while 2,970 EVs with capacities between 51 and 100 kilowatts, worth Rs 8.45bn, were brought into the country. Furthermore, 68 EVs with capacities between 101 and 200 kilowatts, worth Rs 349.7m and 13 units with capacities above 201 kilowatts, worth Rs 92.12m, were imported during the period.

While EV imports have seen a modest increase compared to last year, the import of internal combustion engine (ICE) vehicles has surged significantly. In the first six months of the current fiscal year, ICE vehicles worth Rs 34.87bn were imported, compared to Rs 23.59bn in the same period of last fiscal year.

Nepal mostly imports EVs from countries like China and India. Chinese EV brands like BYD, Deepal, Omoda and MG are popular among Nepali consumers, while Tata holds the largest market share among Indian brands in the Nepali market. Nepal also imported EVs from South Korea, Germany, the United States and Indonesia, among others, in the review period.