Thematic Report: August

Topic: Electric Vehicles: Is Nepal ready for this?

Its last month for all 26th regional ambassador. I learned a lot from thematic report and free report posted by my fellow ambassador from all over the world. For this August month we got a topic about ‘The eco-friendly Future'. So, I thought to write on ‘Electric Vehicles: Is Nepal ready for this?’. I don’t know if this falls under scope of topic as guided by mentor but I hope this will be a report wroth to read.

In Nepal, Bijaya Sagar Pradhan purchased his first electric vehicle in 2010. Pradhan was one of the first adopters of private electric vehicles in Nepal at that time, when electric automobiles were an uncommon on Kathmandu's (capital city of Nepal) streets. Electric cars have the potential to reduce air pollution and the country's reliance on imported oil, but more effective laws and infrastructure are still needed. Electric vehicles were a goods of uniqueness. Many people were unaware of electric vehicles and still are unware on this good, and those who were aware were doubting about the technology. As it was new to all Nepalese, it think it was seriously difficult to persuade consumers to choose electric vehicles over gasoline and diesel vehicles by the sellers. 

It was reported that one-unit sale each month was accepted as a great success in its early years. Nepal's EV environment has shifted dramatically after Pradhan's REVA purchase. According to the Electric Vehicle Association of Nepal, the country's total number of EVs, which includes private two- and four-wheelers as well as public vehicles, reached 21,000 in 2017. This number surpassed 45,000 in 2018. EVs now account for almost 10% of all vehicles sold in the country. Globally, specialized foreign manufacturer like Tesla, Rivian, LUCID Motors, NIO, and Byton have been found positive on rising demand for EVs. Even conventional combustion engine companies have begun to place a strong emphasis on electric vehicles. In Nepal, to accept the future of mobility to be electric is not possible in couple of years as still many vehicles are oil based and citizens here are not in familiar with electric vehicles. However, in order for Nepal to truly embrace electric cars, the country requires a solid infrastructure to support them. And the moment has come for Nepal to begin building the framework for what will undoubtedly be the next major transportation shift. 

Although being second richest country in terms of water resources there was a 16 hour long power cut in Nepal. According to analysts, NEA's existing power distribution network will need to be updated to accommodate the increased load. According to the NEA's annual report for the year 2018/19, Kathmandu has 11 substations, each with a capacity of 60.10 MVA, for a total capacity of 642.30 MVA. Electricity usage will rise as the number of electric vehicles (EVs) grows.According to car dealers, once the Nepal Electricity Authority (NEA) successfully eliminated power outages in 2017, people's perceptions about EVs began to shift. However, one issue persisted at the time: the EVs' restricted range. Many people don’t think it was worth it to invest in the high upfront costs of electric vehicles because of their restricted range. However, in the last several years, EV battery technology has advanced dramatically. Today's car batteries have greater density, allowing EVs to go hundreds of kilometers on a single charge. Electric cars had a range of less than 160 kilometers on a full charge in 2010, with the exception of Tesla's Roadster (which had a range of just over 300 kilometers). 

Electric car manufacturers are already routinely releasing vehicles with a range of 300 to 400 kilometers on a single charge, however these models have yet to arrive in Nepal. The government of Nepal has also implemented policies to encourage the use of electric vehicles. Unlike fossil-fuel-powered four-wheelers, which are subject to taxes of up to 261 percent, private electric four-wheelers are only subject to a 23 percent tax (10 percent import tax and 13 percent VAT). Taxes on public EVs with a capacity of more than 14 people are merely 14 percent (1 percent import tax and 13 percent VAT). 

It is the time that government of Nepal should focus on establishing infrastructures on making electric vehicles as a common term among people and using it in wide range.

Have a good time everyone, I hope you enjoyed reading this report. Thank you!