Imports of EVs outnumbered petroleum vehicles in the first three months of current FY

Kathmandu: Nepal imported 705 units of electric vehicles (EVs) compared to 699 units of petroleum vehicles in the first quarter of the current fiscal year.

According to the Department of Customs (DoC), the imported EVs were almost five-fold the import figure during the review period last year. Nepal imported 143 units of EVs between mid-July and mid-October last year.

The DoC’s records show that the import of EVs is on rise, which is mainly due to the government policy to restrict import of petroleum products run vehicles. Most of the imported EVs were with a capacity of less than 100 kW.

Through the budget announcement this year, the government has reduced the customs rate on imported EVs that have a capacity of less than 100 kW, while increasing taxes on the high-end EVs. During the review period, a total of 686 units of EVs in this category were imported. Similarly, 17 EVs between 100 kW and 200 kW and two such vehicles beyond this range were imported.

Since April, the government has prohibited banks from opening letters of credit (LC) to import these vehicles. Traders are said to have opened the LCs for the given number of petroleum vehicles before the government imposed restrictions on imports.

According to the DoC, imports of vehicles and parts stood at Rs 15.26 billion, a decline from Rs 21.84 billion last year.