18 August 2024, Kathmandu
The adoption of electric vehicles (EVs) in Nepal is rapidly increasing, but the government remains sluggish in addressing crucial battery management and regulatory issues.
Nepali Consumers Embrace EVs
According to the Customs Department, over 20,731 EVs were imported in the last 11 months of fiscal year 2080/081, yet the government has failed to implement a clear policy on battery management.
Despite the Supreme Court’s order in April last year to form a committee for the study and management of EV batteries, no such committee has been established. While the government introduced a polluter-pays principle in its recent budget, which mandates importers to manage the batteries, the implementation has been inadequate.
The popularity of EVs is evident, with a significant presence expected at the upcoming NADA Auto Show in Kathmandu. However, the government’s weak regulatory stance is concerning, particularly in areas like fare regulation for electric public transport and battery management. The failure to establish proper fare guidelines has led to electric vehicles charging the same rates as diesel and petrol vehicles, despite their lower operational costs.
The lack of a comprehensive battery management plan poses a significant environmental risk. Although some importers have submitted battery management plans to customs, as required by the recent economic bill, transparency is lacking, and many plans are not available on company websites.
In response to the Supreme Court’s directive, the Ministry of Transport has contracted a third party to study battery management. The initial study suggests that recycling and refurbishing will be key strategies, but much work remains to ensure these processes are effectively implemented.
Nepal’s growing EV market highlights the need for swift government action to establish clear policies and regulations, ensuring sustainable growth and environmental protection.