Northern border disruptions and higher duties slow Nepal’s EV boom

Nepal's burgeoning electric vehicle (EV) market is facing a significant slowdown, with imports plummeting by over 24% in the last fiscal year. This downturn is primarily attributed to persistent disruptions at the country's key northern border crossings with China, which have severely impacted supply chains.

The disruptions, stemming from events like a flash flood that destroyed a bridge and landslides blocking routes, have caused months-long delays. This has created a crunch for automakers, threatening the timely unveiling of new EV models at major upcoming exhibitions like the NAIMA Nepal Mobility Expo and the NADA Auto Show.

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We couldn’t import 400 to 500 EVs as planned in the last fiscal year because of disruptions at the China border.

"We couldn’t import 400 to 500 EVs as planned in the last fiscal year because of disruptions at the China border," stated Yamuna Shrestha, managing director of Cimex Inc, the authorized distributor for BYD. She emphasized the substantial losses incurred by traders and urged the government to ensure smoother trade operations during such obstructions.

Adding to the challenges, some dealers had overstocked vehicles in anticipation of potential duty hikes before the previous fiscal year's budget, which also contributed to a slight dip in import figures. However, the primary concern remains the unstable northern trade routes, which are critical for the sustained growth of Nepal's once rapidly expanding electric mobility sector.

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The government should ensure smooth trade whenever such obstructions occur. This is not only about importing EVs but all goods. Major trade routes should be prioritised because we have not been able to deliver EVs on time as committed.