World EV Day

World EV Day 2024 is observed on the 9th Day of September. The day is observed to emphasise the importance of e-mobility. World EV Day helps to spread awareness about sustainable transport facilities of the people. Air pollution is mainly caused by transportation, and EVs are one of the major alternatives to decrease air pollution.

World EV Day aims to make people aware of benefits of switching to EVs. Using Electric Vehicle can transform the world for the better and save the environment as well as energy.

We are in the fifth year of EV Day which serves as global platform for electric mobility and accelerating shift towards cleaner transportation. It emphasises the importance of reducing carbon footprint, innovation in battery technology and building infrastructure required for widespread EV adaption. The day also encourages individuals, institutions and industries to commit to more sustainable future by embracing electric vehicles. What began as an awareness campaign has quickly evolved into a global movement, reflecting the growing momentum of EVs as a central part of the automotive landscape.

Observing of World EV Day appears as yet to be enlisted in the UN agencies so far. Consequently, it sounds that World EV Day is certainly a new product for Nepal, and most probably in other countries also.

Nepal needs to spread awareness and knowledge sharing activities among leaders, business community and commoners. They need to be agreed on need of reducing air pollution which kills more than 40,000 people per year. Fossil fuels as one of the greater contributor, consumption of fossil fuel should be drastically reduced soon. Consumption of electricity to power electric vehicles is well utilising of clean electricity generated in Nepal by hydropower plants and other renewable energy technologies. That means cost of import of fossil fuel will be de reduced significantly.

The importers and agents of electric vehicles made in China, South Korea, Japan and India are bringing in varieties of SUVs, hatchbacks and small cars affordable to different class of users.

Notably, the 16th Edition of the NADA Auto Show 2024, held in Kathmandu. has been marked by a significant focus on electric vehicles, reflecting Nepal’s growing interest in sustainable transportation. The show was visited by more than 82,000 interested people.

Moreover, Nepal imported a total of 11,701 electric four wheelers in fiscal year 2023-24, a record high, according to the Department of Customs of Nepal Government.

In fiscal years 2022-23 and 2021-22, 4,050 and 1,805 EVs were shipped into Nepal, respectively, the customs figures showed.

The government has set a target of making EVs account for 25 percent of all private passenger vehicle sales by 2025.

It is worth to recall that Nepal brought in a record number of EVs in the last fiscal year 2021-22 after seeing their imports up and down trends in Fiscal Year 2020-21, 2021-22 and 2022-23 after a good tax rule provisioned in the FY 2016-17.

From FY 2022-23, the government has decided to levy excise duty on top of the customs duty on high performance electric vehicles, which has made them more expensive.

The tax rule slapped 30 per cent excise duty on vehicles fitted with 100-200 kW motors. Likewise, a 45 per cent excise duty has been levied on the import of EVs equipped with motors of 201-300 kW capacity. Similarly, 60 per cent excise duty has been slapped on EVs with a motor capacity of more than 300 kW.

The tax rule for the FY 2024-25 has brought a little change targeting mainly to the luxury type EVs.

Above statement shows that promotion of EVs in Nepal is bright which support actions to reduce climate change effects, reduce vehicular air pollution, and reduce import of fossil fuel which is one of the major factors of greater gap in the import and export of the country. Moreover, EVs support consumption of electricity generated in the country.

So far the electric vehicles imported are mainly focused to private and institutional uses while electric vehicles for public transportation have not yet been a focus agenda at governmental and private sectors.

The buses, minibuses and microbuses run by energy stored in the batteries are costly even in the international market. The tax policy and financial policy are not supportive to transport entrepreneurs in Nepal. The entrepreneurs may compromise for small ratio of profit by operating EVs for public transportation. The growth rate to this segment is very low limiting to 11 to 14 seat microbuses. Even then number of such vehicles reached to thousands. For the real growth of electric buses, the Government waive taxes on import of such vehicles and credit facilities including subsidised interest rate on bank loans. Notably, reduction of fossil fuels usage which is to consume more electricity EVs for public transportation should be in priority rather than EVs for private or institutional use.

EVs for public transportation is more important part for Nepal which carries the country’s commitments expressed in the global forums and charters – Net Zero Emission, Nationally Determined Contributions, Sustainable Development Goals, Energy White Paper of Nepal Government, 15th Five Year Plan and others. As such, this aspect should be the guideline for Nepal Government to act appropriately and create conducive environment for private sector to be engaged with electric buses and other means which run with electrical power.

Therefore, an argument should be taken valid to advocate financial support for electric vehicles for public transportation from global funds created by UNFCCC, COP resolutions and other possible bilateral and multilateral funding mechanism.

Moreover, the Sixth Assessment Report from the Intergovernmental Panel on Climate Change (IPCC) is mention worthy as it has shown evidence based facts and figures of contributors of global climate change effects which could lead devastating results in future. It also has recommended measures and instruments.

Electric mobility to replace use of fossil fuel is one of its recommendations. The report stresses the urgent need to reduce greenhouse gas (GHG) emissions. The analysis from Working Group III, “Climate Change 2022: Mitigation of Climate Change”, was released on April 4th. This section of the report examines the various strategies that might help restore climate equilibrium, and electric vehicles are now seen as our best hope for decarbonizing the transportation sector. The optimistic assessment from the world’s leading climate experts contradicts the persistent arguments of EV detractors who refuse to accept the extraordinary environmental benefits of EVs.

The battery technology is a very important component in electric vehicles. Commercialisation of Lithium has battery played a greater role for EVs to grow rapidly. R & D in battery technology for better efficiency is continued. Some high profile automobile and battery companies are readying to commercialise Solid State Battery, some on Manganese Battery. According to their target and commitments, better energy storage system will be common in 3 to 4 years time from now. That will be a different scenario that EVs can replace in wider extent to fossil fuels run vehicles. On the other hand, globally, hydrogen fuel technology is also producing better results to be used in mobility sector. The progress on hydrogen fuel technology achieved at Kathmandu University is also much appreciable and expectable for future of decarbonised mobility in Nepal.