In fight against air pollution and greenhouse gas emissions, the electrification of the transport sector is an important goal because widespread electrification would greatly improve the quality of the air we breathe. And in fact, switching to electric vehicles has also been a core target of the Ministry of Forests and Environment since 2015, in doing that Nepal has a comparative advantage in terms of production of its own hydroelectricity, a local energy resource, with a huge potential to replace imported fossil fuel in upcoming days resulting the energy security of country.

Also, EVs are the cleaner, greener, and quieter alternative money saving and cheaper in the long run and is dependent on domestic energy sources of Nepal.

Earlier days of EVs

Earlier policies and budgets tried to encourage the use of EVs with favourable tax policy, even though the lack of charging stations remained a major concern issues. While Introduction of policies favourable to battery powered vehicles have at least replace this incremental rate by EVs. Reduction in purchase and operation costs, charging duration could have created a huge acceptability of electric vehicles in Kathmandu Valley.

Similarly, construction of charging infrastructure around the valley could provide solution to worries of the general public while purchasing an EV. And a lot of investments were already done domestically as well as from FDIs to build these high power charging stations for long route EV travelling. We already have a history of electric public transportation like trolley bus and safa Tempo which are still in use till date inside Kathmandu valley in various major routes. But this is just in the past times before the new tax policy.

Current Days of EVs in Nepal

However the future of Electronic Vehicle now in Nepal seems to have unclear future, with the new tax policy introduced this fiscal year. The Nepal government’s decision in late May to hike taxes on electric vehicles is one of the most criticized decisions because the 2020-21 budget raised customs duty on electric vehicles to 40 percent, introduced excise duty ranging from 30 to 80 percent and kept VAT unchanged at 13 percent.

Previously, EVs only paid up to 10 percent customs and 13 percent VAT. Electric vehicles of peak power 50-100kW will now have to pay 40% excise, 50% if it is 100-150kW. The excise goes up to 60% for battery cars with peak power of 150-200kW. Because the EVs which would have cost 55 lakh before the new budget will now cost more than 1 crore 30 lakhs, this is an absurd situation for EV market in Nepal.

All the addition of tax on EVs now

Here is the example of tax calculation after the Budget 2020/021. Let us assume the price of an EV is Rs 55,00,000. Now, according to the new budget, the price will be subjected to 40% customs duty. After adding customs duty i.e. Rs 22, 00,000 new price will be = Rs 77,00,000. Now let’s assume the EV has a power ranging between (100-150Kw), then add the excise duty of 50% (Electric cars with peak power ranging between 50-100kW will bear an excise duty of 40%, 50% if it’s between 100-150kW, and 60% for 150-200kW).

The new price will be = Rs 1,15,50,000 (Rs 77,00,000 + 50% Excise duty i.e. Rs 38, 50,000).

Now the VAT is also there to be added  that is 13% VAT = Rs 1,30,51,500 (Rs 1,15,50,000 + 13% VAT i.e. Rs 15,01,500).

And here at the end comes 5% road toll which will depend upon every local level government policy  = Rs 1,37,04,075 (Rs 1,30,51,500 + 5% road toll i.e. Rs 6,52,575). 

The final price will be Rs 1,37,04,075 (excluding 20% dealer margin).

Result in reverse growth of Environment friendly, EVs in Nepal

Instead of having electronic vehicle friendly budget our country’s tax policy is actually going against the global trend. Electric vehicles are being imported by Renault, Mahindra, Kia, Hyundai, MG, Peugeot, Audi and BYD. Other importers which were also planning to add electric cars to their showrooms will now cancel their orders. These have made the EVs business intangible and risky for the dealers. As well as an impractical decision the consumers who earlier had made their mind to own electric vehicle in near future.

 

Also Read:

NEW UPCOMING BIKES IN NEPAL 2020 | SPECS, PRICE EXPECTATION

ELECTRIC VEHICLES | CARS | BIKES: ADVANTAGES AND DISADVANTAGES

GENIUS ELECTRIC MOTORCYCLES AND TAILG ELECTRIC SCOOTERS LAUNCH IN NEPAL

TOP SCOOTERS IN NEPAL 2020 | 125 CC | PRICE

EMBOSSED NUMBER PLATE REGISTRATION PROCEDURE IN NEPAL

TOP FIVE BIKES IN 150CC SEGMENT IN NEPAL WITH PRICE AND SPECS

KTM BIKES IN NEPAL WITH FULL SPECIFICATION AND PRICE

BEST OF CES 2019

NEW UPCOMING ELECTRIC CARS IN NEPAL 2020 | PRICE, SPECS

NEW CARS LAUNCHING IN 2020

 Pioneer Moto Corp Pvt. Ltd., the authorized Distributor of Nissan in Nepal is appealing its customers to buy Nissan four wheelers as they have announced a ‘Pre-Budget offer’ with the cash benefits in the purchase of the Nissan four-wheelers.

For the cash benefit, when a purchase of New Micra active is made, the buyer receives the benefit of Rs. 3 lakh 1 thousand. Similar benefits can be reaped when a purchase is made for Sunny, the buyer can receive the benefit of Rs. 3 lakhs 6 thousand. In the purchase of Nissan kicks, Navara and X-trail, the buyer can receive benefits of Rs. 1 lakh 98 thousand, Rs. 5 lakhs 37 thousand and Rs. 7 lakhs 27 thousand respectively. 

This offer is valid only till the stock lasts and available across all dealer networks.

Government of Nepal is giving incentives to import electric vehicles as an encouragement for the clean, green and healthy city environment. We are excited to see green vehicles hitting the road. Big companies like Hyundai, Kia, Mahindra have already started importing the electric cars as taxes for such vehicles have been waived in a large amount. But as usual, is this plan going to sustain in the long run?

When we see an electric vehicle, we picture batteries and a clean environment. The slow and steady eradication of fossil fuel-generated vehicles would not only save the non-renewable resources but also make the country pollution-free. But thinking ten years ahead from now, electric vehicles would also be a source of pollution as there is no proper policy with regard to disposal of the batteries.

The chemical combination varies from battery to battery but their prime constituents are mercury, nickel, cadmium, lead, electrolytes, and lithium. When they are disposed in trash, the batteries end up in landfills. As the battery casing corrodes, the chemicals reach the soil and make their way into the water supply. Also, the lithium-ion batteries act volatile when exposed. In accordance to Battery University, the lithium can cause landfill fires and burn underground for years. Such burns release toxic chemicals into the air and increases the potential for human exposure.

 

 

Rakesh Pradhan, the senior marketing assistant of NIU electric scooter states, "We are trying to collaborate with engineering colleges so that they can study the batteries and the way to dispose them correctly. For now, most of the batteries are sent back to China to the NIU University. Similarly, Diwakar Regmi, the showroom head of Hyundai Motors states that "The policies need to change for the betterment of environment of the country. The long term plans haven’t been brainstormed yet."

The other hurdle due to the lack of policy implementation is the cost of replacement of batteries. The Nepal Government has waived taxes for the electric vehicles but the cost of replacement of batteries after the warranty period is over is still high. The replacement of just the batteries of NIU electric scooters is around 1085$ (approx. Rs 1,20,000) and Hyundai Kona is around 14 lakhs which can be a cost of burden in the future.

We are still in the traditional era. Many people have adapted to the profession of repairing bikes and cars to earn their livelihood. They have trained themselves to repair those petrol and diesel induced vehicles. With the introduction to the electric vehicles, they are at the high risks of getting out of their jobs. Raju Shrestha, the owner of Shrestha Repair Centre, Kuleshwor, states, "The people like us are not at risk for about ten years from now. However, with the increase of electric vehicles, the government should consider training them in this technical field too."

Nepal Electricity Authority (NEA) is set to install ten charging stations for the instant recharging of the electric vehicles. The utility will be owned by the state and the Office of Energy Efficiency and Leakage Control of NEA is speeding up for the finalizing of the locations.

Peugeot Partner Tepee is the first EV from Peugeot Group which was introduced in September 2017 and was very successful worldwide. Shangrila Motors Pvt. Ltd., the authorized distributors of PEUGEOT vehicles in Nepal, had launched Peugeot Partner Electric. With the change in the Tax structure on electric vehicles, the price of EV will surely go up, however, Shangrila Motors has been offering Partner Tepee EV at Pre-Budget Price of Rs. 55,00,000.

Peugeot Partner Tepee EV Overview

Peugeot Partner Tepee EV has a powerful electric motor producing max power of 67HP and max torque of 200Nm, gets you from 30 to 60kmph in just 4.2 seconds and you can achieve up to 110kmph of max speed. Likewise, it is equipped with a 22kWh Li-Ion battery that can give you a range of 170km in a single charge.

The Partner Tepee EV is a comfortable and well equipped five seated MPV offering huge practicality and low running costs. The rear seats split, fold, recline, tumble and can be removed entirely. There is easily room for three adults in the rear seats, plus they recline for comfort and fold separately to provide 1,350 liters of space. The seats are removable, increasing the load area to a huge 3,000 liters. The flat floor and high roof makes loading easy. It's sliding doors on each side provide easy access from the pavement and eases you at tight parking spaces. With 200mm ground clearance, you can drive over almost any road without worrying about your battery coming in contact with the ground which make driving an EV fun on all roads. You can use it for commercially as well for transport or other businesses such as travel and tours.

Safety includes ABS, brake assist and a passenger and driver's airbag with side and curtain airbags fitted as standard. Other features include Cruise Control, manual air-conditioning and LED daytime running lights, Touch-screen Infotainment System with DAB digital radio and a Rear View camera, Parking sensors, Automatic Headlights and Rain-sensing Wipers too. Its versatility and driving experience will appeal to budget-conscious family wanting to own an EV and businesses for commercial use.

Hurry!  the offer is valid till stocks last

Also Read:

TOYOTA LAUNCHES NEW MODEL RAV4 PHEV

ALL ELECTRIC FORD MUSTANG COBRA JET 1400 UNVEILED

HYUNDAI IONIQ ELECTRIC 2020 LAUNCHED | PRICE IN NEPAL, FULL SPECIFICATION

RENAULT'S ELECTRIC CARS SHOWCASE IN GENEVA MOTOR SHOW 2020

ALL NEW 2021 ENYAQ IV ELECTRIC TEASED BY SKODA | REVIEWS NEPAL

NEW UPCOMING ELECTRIC CARS IN NEPAL 2020 | PRICE, SPECS

AMPERE ELECTRIC OPENS DEALERSHIP IN NEPAL

Advantages and disadvantages of Electric Vehicles

 

With more than 40 fully electric vehicles on the market in the U.S. or coming within the next three years, however, auto and charging company executives say the demand is on the way.

“The automakers, more and more of them are committing to manufacture electric vehicles,” said Mike Moran, spokesman for Electrify America, a network of charging stations being built with $2 billion in settlement money from Volkswagen’s diesel emissions cheating scandal. “Last year automakers announced a combined $225 billion in investments in electrification.”

There are now 26,000 electric vehicle charging stations open to the public in the U.S., with more than 84,000 plugs.

But the country, and the world, will need thousands more if drivers are going to adopt vehicles powered by batteries alone. And because they’re being asked to invest before that demand arrives, automakers and charging companies are struggling to raise the numbers.

Currently electric vehicles make up only about 1.3% of total new vehicle sales in the U.S., according to the Edmunds.com auto site. Electrics are much bigger in other countries, accounting for 2.6% of global new vehicle sales last year, the International Energy Agency says.

On Friday, General Motors and charging company EVGo announced plans to add about 700 fast-charging stations, tripling the number on the EVGo network over the next five years. They wouldn’t say how much they’ll invest, but plan to add 2,700 fast-charging plugs.

source: AP

Also Read:

ALL NEW 2021 ENYAQ IV ELECTRIC TEASED BY SKODA | REVIEWS NEPAL

ORA R-1 ELECTRIC CAR COMING TO NEPAL SOON? 15 LAKHS ONLY?

NEW UPCOMING ELECTRIC CARS IN NEPAL 2020 | PRICE, SPECS