Electric Vehicles: Nepal vs Germany

After the announcement of National budget of fiscal year 2076/2077 (2020), there had been a huge outcry over the government decision. Reason was, government imposed a rise in thrilling of upto 140% taxes on the electric car imported from abroad. This action of Oli’s government repeals its own voice made before 2 years ago “20% of vehicles in Nepal would be electric by 2020”.

While one country in Europe have increased the incentives by double: cutting off zero incentive towards traditional diesel/petrol engine vehicles. Germany, is the country who had lead the race in supporting its EV industry more promisingly than the countries worldwide. Germany ranks 4th in the automotive industry where worlds top brands like Volkswagan, BMW and Ford are holding the nation pride.

The decision by the government on taxes to be hiked on EV have rises a concern on how the country is em-phasing on eco friendly products. After this, the excise tax of only 10% on battery cars will be raised to 40-60%, and on top of that there will be another 60% customs duty.

Many experts who have been working in electric industry have seen a clear black path ahead. Companies who have been importing or assembling electric products might likely to loose business or shut down in a very short time. A Kia Niro that cost Rs 6.5 million will now have a price tag of at least Rs 9 million.

Yatri Motorcycles, which was launched in Nepal by the Nepalese who were living a quality life in abroad. They had came in Nepal with a hope that they could make some changes in their own country. But they already faced the challenges and demotivate in their first bit before 1 years in 2019. They told” Nepal government should levied the taxes on EV spare parts so they could do innovation which would be the country’s worth in future”. One team member who have worked in BMW have told that they haven’t expected such challenges in Nepal. He further iterate that innovating in Nepal is quite hard.

Another firm of Mahabir Pun’s, National Innovation Center, one of Nepal’s first innovation center opened free for everyone also Questioned, “what will government do if Nepal produces enough electricity? The only solution is to dumped the produced electricity in the water from where it was produced”

There are more than dozens of EV 4 wheeler and 2 wheeler’s vehicles running in Nepal. Recently, President Bidhyadevi Bhandari have also acquired the EV motor.

NEA, Nepal Electricity Authority’s, currently MD, Kulman Ghising gives a repetitive interview saying Nepal will be self sufficient in energy production in the next 2-3 years. In rainy season, Nepal’s own production have been fulfilling the energy hunger in the country discarding import from India. So, we cannot find any reason why government have surplus the taxes on EV’s since energy production will be high in a couple of years.

So in summary, in case of EV’s, Nepal is moving backward where rest world are putting their best effort to go to electric. Instead of creating a lush environment, Nepal’s move will make a bit more messy in environment.