Electric Vehicles: An introduction

A car using an electric motor instead of a combustion engine running on fuel or diesel can be precisely described as an Electric Vehicle. The energy comes from batteries, which may be charged with regular household electricity at a power station on the street or an EV charge station at home. EVs are fueled by self-charging mechanisms like turbochargers and regenerative braking systems, or by deploying a collector system using electricity from a charging station.

The global interest in the rise of the electric vehicle industry may be attributed to a number of intriguing aspects, including strict government laws and the growing desire for high-performance, fuel-efficient, and low-emission automobiles. Furthermore, the main barriers to the market for electric vehicles are their high production costs, poor fuel efficiency, and limited serviceability. The global market for the EV is segmented on the basis of type, vehicle type, and region. 

The Global switch to Electric Vehicles

Given that it is a fossil fuel, petrol is not a sustainable energy source and will eventually run out. In order to maintain long-term development without disrupting the delicate balance of the ecosystem, it is crucial to employ alternate fuel sources. For this purpose, electric cars are the greatest choice because they are more economical than traditional vehicles and don't require gasoline. An electric car converts 50% of the electrical energy from the battery supply to power at the wheels, while a gasoline-powered vehicle uses 17% to 21% of the energy stored in fuel. All of these elements together show how important it is to develop cutting-edge fuel-efficient technology, which will increase global demand for electrically driven automobiles. 

A number of major companies, including Tesla, BMW Group, General Motors, Nissan Motor Corporation, Toyota Motor Corporation, Volkswagen AG, BYD Company Motors, Daimler AG, Energica Motor Company S.p.A., and Ford Motor Company, are leading the industry in the rapid development of EV technology. Every company and engineer is focusing intensely on marketing, EV technology development, and growing the market share of EVs over conventional vehicles.

EV’s in Nepal 

Since the 1970s, Nepal has led the way in sustainability with the employment of zero-emission tram buses and Safa tempos for public transit. Trolley buses represented fairness and accessibility for the general public, thanks to its well-planned infrastructure and plentiful supply of power. Safa Tempos showed that significant technology investments are not necessary to reduce air pollution. Tax breaks and credit incentives were used to assist these programmes, which at the time produced the biggest fleet of public electric vehicles (EVs) in the world. But the future was doomed due to unmet battery and technological issues, as well as, primarily, government policy that favored fuel equivalents by decreasing tariffs. With so much hydroelectric electricity available, switching to electric choices could be the best course of action.

With abundant hydroelectric power potential, switching to electric vehicles and implementing more controlled public transport systems might be the best course of action for achieving global sustainability. The transport industry, which emits the second-highest amount of CO2, has to be made more sustainable, especially since the European Union recently declared that this year was the warmest on record.

In line with a more comprehensive strategy, Nepal aims to have 90% electric cars by 2030. Fuel prices were skyrocketing, while government incentives like tax refunds drove a rise in EV adoption due to lower operating costs. Banks are now providing financing for EV purchases of up to 90%. The demand for battery-powered cars has been maintained by a consistent supply of electricity from successful hydro projects. Conscious decisions and changing lifestyles play a major role in the rising demand for electric cars. 

Because of the EV-friendly regulations, the Department of Customs states that EV imports increased by over three times during FY 2022–2023. More over 60% of all imports are electric vehicles, indicating a sharp increase in the market for personal electric vehicles. Moreover, two-wheelers made up 80% of all registered cars within the same time period (FY 2022–2023). Encouraging the usage of e-scooters would be a useful way to cut pollution and traffic jams. 

Efforts from the government:

The Nepal Electricity Authority (NEA) and the Nepal Tourism Board are two government organizations that are actively advocating for environmentally friendly transportation methods. They have pledged to only utilize electric vehicles (EVs) for transportation in order to inspire the general population. The Sustainable Development Goals (SDGs) are supported by NEA's ambitious goal of 100% electrification by 2024, which is also helping to promote the broad use of EVs and an ecosystem that is hospitable to them. The Fiscal Year (FY) 2023–2024 budget included incentives, including land leases and tax breaks, to encourage the construction of EV manufacturing and assembly facilities in Nepal. A more seamless transition to EVs will result from these promises.

Currently with the operations of around 140 charging stations, the government is actively trying to install 500 more as part of Public-Private Partnerships (PPPs), which share responsibility for EV infrastructure development with the private sector. In addition to the NEA, car dealerships like BYD and Sajha Yatayat are aggressively developing the charging infrastructure. The government has remarkably mandated that petrol stations build charging outlets for both new and current registrants. These demonstrate the government's increased emphasis on the adoption of EVs.

Challenges:

The FY 2023–2024 budget includes significant levies on electric vehicles. The Department of Customs discovered that the most popular electric vehicle models in the 50–100kW range, such as the BYD Atto3, Hyundai Kona, Honda Neta, Tata Nexon, and others, are imported the most. Interestingly, this category was surprisingly charged 10% excise duty in addition to 15% customs duty, making them more expensive.  

Another challenge is Nepal's challenging topography and underdeveloped infrastructure. Since the majority of charging outlets are concentrated in the nation's capital, many people doubt that long-distance EV travel is feasible. Furthermore, there have been four changes to the tax policy in the last two years, which may have diminished public interest. EVs have become more common thanks to government policies, but there is still more to be done to ensure long-term sustainability.

The way forward:

Electric vehicles (EVs) have a bright future in Nepal, but a number of variables may affect their uptake and expansion there. For EV sales to increase, the government must continue to assist the industry via laws, subsidies, and regulatory frameworks. This covers policies like tax breaks, financial aid for buying electric vehicles, building infrastructure, and establishing pollution guidelines. To encourage the broad use of EVs, the infrastructure for charging them must be expanded. It will be vital to make highway, urban, and rural charging station investments in order to alleviate range anxiety and entice people to convert to electric vehicles. Increasing consumer knowledge of EVs' advantages—such as their reduced operating costs, possible long-term savings, and favorable environmental effects—will be crucial to overcoming skepticism and hastening adoption.