Man charging car at charging station
28 Mar, 2023

Is it worth switching to Electric Vehicle in Nepal in 2023?

The revolution Tesla ( electric vehicle & clean energy company) has brought in the electric vehicle segment has questioned everyone.“Is it really worth switching to an Electric Vehicle ?”And this question has arised amongst most of the vehicle buyers in Nepal. Uncertain availability of fuel, rising fuel prices, green-house gases emission from vehicles is forcing people to look for a better alternative source of energy for vehicles.Thankfully, Electric Vehicles are the best alternatives available in 2023 worldwide. We can see over the last few years, Nepal has accelerated its transition to electric vehicles. The Nepalese government's supportive policies like tax

reduction on two and four wheelers in the electric segment have aided this growth massively. Also, financing for EV is easier as compared to petroleum-powered vehicles (traditional vehicles) in Nepal and banks have been financing up to 80% of quotation or VAT price for four-wheeler EVs. Furthermore, Nepal has a comparative advantage in hydroelectricity production, which offers an enormous  potential to replace fossil fuel in the coming years.So, why should you choose Electric car in Nepal ?Let us see the advantages of having an electric car in Nepal:1. Tax BenefitsThe Nepalese government is surely helping out the EV sector with tax benefits. The Nepalese government has reduced the tax in fiscal year 2078–2079 from 80% to 40%, making them comparably less expensive. The custom duty for four wheelers electric vehicles has also been improved with 0% excise duty,  13% Value Added Tax (VAT) and 5 % Road Development Fund (RDF) . Let us see the improvised custom duty of four-wheelers electric vehicle segment in Nepal for the fiscal year 2079/2080.PowerExcise DutyCustom DutyVAT & RDFUp to 100kW              0%10% 13% and 5%100-200kW15%200-300kW30%300kW and above40%2. Easy EV loansAll commercial and national-level development banks in Nepal offers easy EV loans with upto 80% financing of the quoted price. Some of the banks that provides four-wheelers electric vehicle loan are:NMB Bank. - NMB Electric Auto LoanEverest Bank. – Electric Vehicle Loan & EV FinancingNIC BankNepal BankStandard chartered bankNabil Bank- Nabil eAuto LoanGlobal IME Bank3. Dependent on domestic energy sourcesUnlike Petroleum/Diesel vehicles that rely on imported fuel,  electric vehicles are powered by domestic energy sources like Solar energy and electricity. 4. Nepal Governments’ help in EV sectorTo encourage the use of electric vehicles in Nepal, the Nepalese  government has provided a bunch of incentives at consumers levels with 50 charging stations across the nation which will expand to 500 in future. Similarly, in order to attract EV manufacturers, the government has declared that they  will provide Tax subsidies and land on lease for vehicle assembly and hopes to attract the world's top ten EV companies.5. A greener, cleaner and quieter alternativeElectric cars have important benefits as they produce no carbon dioxide or green-house gases while driving, providing a friendly environment with  greener, cleaner and quieter alternatives with electric cars.Saral Banking Sewa’s Electric Vehicle Loan Comparison helps in comparing interest rates, features, and minimum downpayment of electric car loans in Nepal.Saral Banking Sewa works to sarali-fy your financial decisions. In case of any confusion or concerns regarding the services provided by the Commercial and Development banks in Nepal, we are only a call away!Give us a call at:Whatsapp: 9851361107Facebook Page