Budget Buzz Triggers EV Flood
Kathmandu – The consumption of electric vehicles (EVs) in Nepal has risen considerably in recent days. Whether it is out of concern for the environment and climate, or for cost saving or transforming lifestyle, EVs have managed to fall under the radar of a wide range of customers. Consequently, importers as well have kept up with the growing demands of the consumers with an ample supply of EVs from the neighbouring country, China.
On the other hand, importers have rushed to import EVs in large numbers from China into the country through Tatopani and Rasuwa Border crossings. The reason for such aggressive imports of EVs into the country is the announcement of the budget for the upcoming fiscal year (FY) 2025/26. There are whispers of a possible tax hike on EVs through the national budget set to be announced on May 29. Due to these speculations, a race has started among the importers to import a large number of advanced EVs into the country.
The rushed import of EVs has resulted in a massive stockpile of EVs at Chobhar Dry Port. According to customs officials, over 900 EVs are currently stuck at Chobhar, while more than 1,000 additional units are reportedly waiting at the Tatopani and Rasuwagadhi border crossings. Importers are acting quickly to capitalise on two major developments: a reported drop in EV prices in China and speculation that the upcoming fiscal policy will impose higher tariffs. This has led to a sudden surge in the import of multi-million-rupee EVs from various international brands, now caught in uncertainty as the nation anticipates the new budget.
The eerie scene at Chobhar Dry Port displays hundreds and hundreds of EVs parked in narrow spaces. As a result, there are also issues of traffic congestion in the port. Even though the systemic procedures associated with imports and exports are being carried out by the officials, the sheer number of EVs is simply overwhelming. While the tax hike on EVs is hinted at by some government officials, it is yet to be confirmed through the announcement of the upcoming budget.
