Reduction in Electric Vehicle Loan Facility Disappoints Dealers

Kathmandu — Electric vehicle (EV) dealers in Nepal are disappointed after the Nepal Rastra Bank reduced the loan facility for purchasing EVs through its mid-term review of the monetary policy.

Previously, buyers could obtain loans for up to 80% of the vehicle’s value from banks and financial institutions. However, this has now been reduced to 60%.

According to Akash Golchha, Senior Vice President of the NADA Automobiles Association of Nepal, this move is disheartening as EVs account for 70% of the market share. In an interview with Ujyalo, Golchha expressed concern that the reduced loan facility would burden consumers at a time when there is sufficient banking liquidity. He urged the government to maintain the 80% loan provision for EVs.

He also mentioned that discouraging EV purchases could hinder the government’s revenue collection targets.

Dealers believe that failing to promote EVs could negatively impact the economy. Golchha emphasized that vehicles are becoming a necessity rather than a luxury, as seen in developed countries, and Nepal should learn from this trend.