Hyundai Motor Co will voluntarily recall its Kona electric vehicles as a possible short circuit due to what may be faulty manufacturing of its high-voltage battery cells could pose a fire risk, South Korea’s transport ministry said on Thursday.
Starting on Oct. 16, the recall, which includes software updates and battery replacements after inspections, involves 25,564 Kona electric vehicles (EVs) built between September 2017 and March 2020, the ministry said in a statement.

The safety recall “is a proactive response to a suspected defective production of high-voltage batteries used in the vehicles, which may have contributed to the reported fires”, Hyundai said, adding that it will deploy all necessary measures to identify the cause of the fire and address customers’ needs.

Some 13 incidents of a fire involving the Kona EV, including one each in Canada and Austria, have been documented, the office of ruling party lawmaker Jang Kyung-tae said in a statement. Kona EVs use batteries made by LG Chem Ltd.

LG Chem said the exact cause of the fire had not been determined and a reenactment experiment conducted jointly with Hyundai had not led to a fire, so the fires could not be attributed to faulty battery cells.

It would actively participate in a future investigation with Hyundai to find the cause, LG Chem added in a statement.
Hyundai’s shares fell 1.4%, reflecting investor concern that the recall and battery replacements could be costly, as the battery accounts for about 30% of an EV’s price, analysts said.

In contrast, LG Chem shares rose 1.8%. The Kona Electric is the South Korean automaker’s first long-range subcompact SUV EV.
In July, Hyundai Motor Group leader Euisun Chung said Hyundai Motor and sister company Kia Motors aims to sell 1 million battery-driven electric vehicles in 2025, targeting more than 10% of the global market share for such vehicles.

Source:reuters

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Not long ago, Nepal only imported vehicles that were generated and operated through fossil fuels. The reasons were simple, lack of enough electricity and public trust in electric vehicles. However, considering the fact that Nepal is one of the richest sources of water and reduction of power cuts, Nepal is now being seen as the potential country for EVs.

Maaz Ashraf, the marketing and communications manager from NIU electric scooter quotes, “This is the third year for NIU electric scooter in Nepal. The first year was disappointing as the people didn’t get the idea of an electric vehicle, and its price range. The second-year was comparatively better and the third year has been overwhelming. The perspective of people towards EVs is changing.”

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The government is motivating the customers to buy electric vehicles through tax waivers for EVs. Also, the reduction of load shedding and awareness of people about the difference in cost when switching from a petrol vehicle to an electric vehicle is a supporting factor. More?

Did you visit the NADA Auto Show 2019?

We could observe that there were only a few fuel generated vehicles launched. The rest of all was electric. Brands like Hyundai, KIA, Peugeot launched their EVs recently and they are undeniably hitting the market with a good response. New and local brands like BYD, TheeGo, Genius, Miyama were also getting a very good response from the public. Recently, Yatri introduced Project Zero, YATRI bike which is getting launched in January 2020, has been the talk of the nation. People are more inclined towards the EVs than the fuel generated vehicles.

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Is an electric vehicle the future?

Electric Vehicles Advantages and Disadvantages

When we asked this question to the visitors of NADA and other general people and enthusiasts, we got mixed opinions. Some said that electric vehicles are indeed the future because it has advantages of low cost, easy maintenance and eco-friendly. However, some opposed stating that motor vehicles are supposed to be roaring through the streets and no electric vehicle can give such an experience. One visitor we interviewed in NADA said that the electric bike is no less than a cycle, it definitely doesn’t give the vibes of a motorbike at all.

Electric vehicle disadvantages:

Lithium-Ion, the main component of the EV’s battery, being a limited resource, cannot fully replace all the vehicles. Similarly, in the context of Nepal, we don’t have any policy regarding the disposal of the used battery (as of now). As quoted by Santosh Nyaupane, “The liquid coming out of the battery is a hazardous chemical that degrades the environment. If the liquid is disposed at a particular place, it becomes deteriorated and we cannot expect anything to grow from the soil for at least a decade.”

The pioneers of electric vehicles are trying to come up with ideas and inventions for the invention of full proof eco-friendly vehicles. The government is supporting the initiative by providing low-interest rates on loans for installing electric charging sockets. Companies like Hyundai are already exploring and testing hydrogen-powered vehicles. The future of the automobile is still getting advanced. We will keep on informing you of all those innovations. Stay tuned with us.

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Amidst huge challenges and uncertainties due to the spread of COVID-19 in the country, the Finance Minister of Nepal Yubaraj Khatiwada yesterday unveiled a federal budget of Rs 1.475 trillion for fiscal 2020-21 at the joint session of the House of Representatives and National Assembly.

The pandemic has created a crisis in the entire region and sales of all types of vehicles have come to a standstill in Nepal. While automobile dealers had few expectations from the Budget, in general, the automobile sector has not been affected as the budget did not increase any tax on two-wheelers and four-wheelers in both petrol and diesel variants. 

However, electric vehicles (EV) have been affected and will now cost more.

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In Nepal, the government had earlier introduced policies to encourage EVs adoption. Unlike fossil fuel-powered four-wheelers, which incurred taxes of up to 261 percent, private EV four-wheelers were taxed only 23 percent (10 percent import tax and 13 percent VAT).

The new budget has now imposed customs duty on the price of electric cars like other vehicles and has also increased excise duty. The previous tariff rate of 10 percent has been increased to up to 40 percent and excise duty will also be levied on the basis of motor capacity. For vehicles up to 50 kW the excise duty is 30 percent, 50-100 kW is 40 percent, 100-150 kW is 50 percent, 150-200 kW is 60 percent, 200-300 Kw 70 percent, 300 and above is 80 percent.

Let’s suppose the cost of an EV was Rs 130/- in Nepal prior to this budget, it will now cost Rs 216/-  for the same car, which is of  50 Kw after the budget speech, Rs 232.60 for the car, which is of 50-100 Kw, Rs 249.17 for the car, which is of  100-150 Kw, Rs 265.78 for the car, which is of 150-200 Kw, Rs 282.40 for the car, which is of  200-300 Kw and Rs 299/- for the car, which is above 300 Kw.

The price of an EV has now almost tripled due to the government's plan of 80 percent increase in customs and excise duties.

However, the budget has some concessions for entrepreneurs who want to install electric vehicle charging stations. It gave some concessions in the operation of electric vehicle charging stations and 50 percent discount on the price of night electricity.

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The government has slightly reduced the excise tax on electric vehicles from the current FY 2077-78 economic activity. A meeting of the Council of Ministers held today has decided to reduce the excise duty on electric vehicles. Government spokesperson Pradip Gyawali informed that it has been decided to reduce excise duty on few items. The government has fixed the excise duty on electric vehicles according to different capacities.

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From the current year’s budget, the government has allocated 30 per cent for 50 kW motor, 40 per cent for 50 to 100 kW, 50 per cent for 100 to 150 kW, 60 per cent for 150 to 200 kW, 70 per cent for 200 to 300 kW, and all over 300 kW. The excise duty on vehicles was fixed at 80 per cent. These rates have been reduced according to capacity. According to sources, low-capacity electric vehicles have been reduced by a large percentage, while high-capacity vehicles have been reduced by a small percentage.

The customs duty on electric vehicles was increased from 10 per cent to 40 per cent and the excise duty was fixed at a higher rate for the first time during the budget for FY 2077/78.

Despite the reduction in excise duty, the same tariff rate will be applicable to all capacity vehicles. The government has fixed  80 per cent customs duty and has given a 50 per cent discount. The price was doubled from the new tax added by the government to electric vehicles. 

The revised excise duty at a glance as below: 

Capacity (Kilowatt)    Previous Duty (%)    Revised Duty (%)
50 KW                               30 %                                06 %
50-100 KW                        40 %                               10 %
100-150 KW                      50 %                                15 %
150-200 KW                      60 %                               45 %
200-300 KW                       70 %                               52.2 %
Above 300 KW                   80 %                              60 %

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