Random Import of EVs: Crisis for Consumers and the Market

Kathmandu, October 28 – Through the budget of the fiscal year 2082/83, the Government of Nepal has clearly specified under Schedule-4, Section 7, Sub-section (4) of the Customs Duty Act that new vehicles purchased from the manufacturer or its authorized dealer may only be imported into Nepal through authorized dealers based in Nepal.

However, clear signs have recently emerged that this provision is being openly violated. Various companies in China are sending vehicles to Nepal by using the same brand and logo but under different names, positioning themselves as “authorized dealers.” Such vehicles imported by falsely claiming the status of manufacturer have created confusion in the market, driven the residual value of vehicles to zero, and posed a serious threat to the security of legitimate investors, according to industry stakeholders.

Uncertainty in International Warranty and After-Sales Service

In electric vehicles, the battery accounts for nearly 50% of the total value and is considered the primary component. A long-term warranty is mandatory in case of battery issues. But how long will these so-called “secondary-level agents” remain in operation? Will the manufacturer provide service and support? Without clear provisions, consumers’ investments remain at high risk.

According to informed businesspersons, the current unrestricted import trend makes it impossible to ensure even the international warranty. One businessperson argues, “A warranty issued by a company that exists today but shuts down tomorrow is nothing more than a piece of paper.” The fact that many small EV manufacturing companies in China shut down every year increases this risk further.

Weakness in the Agency Certificate Issuance Process

The Department of Commerce, Supplies and Consumer Protection has a system of issuing agency certificates. However, stakeholders claim that by granting permission even to companies whose legal status is unclear—those importing vehicles with different brands and logos without a test report or a Certificate of Conformity (COP) from the original manufacturer—the essence of existing laws is being violated.

Business operators have also expressed concerns that the mandatory provision to deposit 5% security and 5% revenue for every new model added has increased the burden on businesses.

Nepal at Risk of Becoming a “Dumping Site”

If unchecked imports continue to rise, Nepal may soon face piles of low-quality EVs, scarcity of spare parts, the impossibility of enforcing warranties, direct financial loss to consumers, and destruction of legitimate businesses. Stakeholders warn that Nepal could become a dumping ground for electric waste.

Urgent Call for Government Intervention

Stakeholders have demanded strict monitoring and enforcement. If imports via unauthorized agents are completely stopped and agency certificates are issued only with proof from the original manufacturer, the credibility of EVs in the market will greatly improve. It is necessary to strictly enforce Schedule-4, Section 7, and prioritize consumer protection.