The new system reduced the prices of small vehicles in particular, while premium and luxury segment vehicles became more expensive, with some models from Skywell and Lipmotor becoming cheaper, and some models from brands like Deepal, Omoda, and BYD increasing in price.
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After the revenue policy introduced in the budget for the fiscal year 2083/84, electric vehicle sellers have started adjusting prices. According to the new tax policy, some sellers have reduced prices, while some have increased them. On the other hand, some sellers have not adjusted prices, saying that new vehicles have not been imported.
The government has fixed the tax rate on electric vehicles based on cost, insurance and freight (CIF) price rather than motor power through the budget for the fiscal year 2083/84. The new system has reduced the prices of some vehicles, while premium and luxury segment vehicles have become more expensive.
According to the price list received by Kantipur, some models of Skywell and Lipmotor have become cheaper. The prices of some models of Deepal, Omoda and BYD have increased. Some time ago, at a program organized by the Nepal Association of Economic Journalists (NAFIJ), Finance Minister Swarnim Wagle had said that even though he had taken a policy to encourage the middle class to buy EVs, luxury vehicles would remain luxury and the prices of electric vehicles under Rs. 5 million would decrease. But the prices of vehicles priced below Rs 5 million have also increased, while some have decreased.
After BMW, the price of Maxus Mifa 7 has increased the most, said Dhruv Thapa, former president of NADA Automobile Association of Nepal and president of Himalaya Organization.
Himalaya Motox Limited, a subsidiary of Himalaya Organization, has been the official importer and distributor of Maxus. ‘The price of BMW EV has increased by Rs 13 million. After that, the price of Maxus Mifa 7 has increased by Rs 12 million,’ said Thapa, ‘It is seen that vehicles priced above Rs 5 million have been affected due to the budget.’
Some vehicle dealers have already adjusted prices. The prices of some vehicles including Nami and Proton have not been adjusted. The dealers say that the prices have not been adjusted because they have not been newly imported. MAW Vriddhi Motocorp, the official dealer of Nami, has not adjusted the prices yet.
The price of Deepal S Zero 5 Plus has increased by Rs 4 lakh. It was Rs 53 lakh 99 thousand before the budget, but has now reached Rs 57 lakh 99 thousand. Similarly, the price of Deepal ‘S Zero 5 Max’ has increased from Rs 59 lakh 99 thousand to Rs 62 lakh 99 thousand.
SPG Automobiles, the official distributor of Omoda, JECO and Icar, has adjusted the price. The company has stated that the price of Icar V23 has increased by Rs 3 lakh. The price of JECO J6T has also increased by Rs 1 lakh. It was Rs 68 lakh 99 thousand before the budget, but has now reached Rs 69 lakh 99 thousand.
BYD’s official dealer, Cymax Inc., has adjusted the price of BYD Atto 2 and Atto 3 (Advance). The company has stated that the price of Atto 1 has not changed despite the adjustment. The prices of BYD Atto 3 (Superior), Ceylon 7, M6 and Dolphin have not been adjusted. The price of BYD Atto 2 has increased from Rs 4.595 million to Rs 4.899 million after the budget. The price of Atto 3 (Advance) has increased from Rs 5.999 million to Rs 6.199 million.
Durga Prasad Acharya, Chief Financial Officer of Agni Incorporated, the official distributor of Mahindra for Nepal, said that the prices of vehicles have increased after the government made arrangements to levy tax on electric vehicles based on value through the budget for the upcoming fiscal year. ‘We have been selling expensive electric vehicles since before. The prices of vehicles have increased from Rs 1 million to Rs 5 million after the budget,’ he said. ‘However, since the budget was made public, we have not imported vehicles and the vehicles currently in stock have cleared customs long before the budget, so they are sold at the old price.’
Acharya said that the new price will be applicable only to newly imported vehicles. The price of Lipmotor's B10 has been reduced by Rs 500,000. Earlier, it was Rs 600,000, but now it is Rs 55,000. Lipmotor's other models have not been newly imported, so the price has not been adjusted.
The price of Skywell BE11 (410 km) was Rs 79,000,000, but now it is being sold for Rs 65,000,000. The price of Skywell BE11 (520 km) was Rs 74,000,000, but now it is being sold for Rs 74,000,000, and the price of Skywell BE11 (620 km) was Rs 11.5 million, but now it is being sold for Rs 99,000, according to Kailash Babu Gelal, the managing director of Skywell's official dealer for Nepal, G Motors.
'There is limited stock now. That is why the price has been reduced. But the price of others, except for the Skywell BE 11 (620 km), will also increase,' Gelal said. MG's official dealers for Nepal, Paramount Motors and Go Motors, have also adjusted the prices of some models. The price of MG Windsor Excite has increased by Rs 174,000. It was Rs 39,750,000 before the budget, but has now been fixed at Rs 41,490,000.
The price of MG Windsor Exclusive has now reached Rs 44,250,000 from Rs 42,490,000. The price of MG Windsor Essence has now reached Rs 44,990,000 from Rs 44,990,000.
Similarly, the price of MG S5 Deluxe has now reached Rs 50,990,000 from Rs 49,990,000. Similarly, the price of MG S5 Luxury has now reached Rs 55,990,000 from Rs 54,990,000. The price of MG S6 has now reached Rs 71,990,000 from Rs 69,990,000. The price of MG IM6 has increased from Rs 78 lakh 99 thousand to Rs 81 lakh 99 thousand, the company has said.
According to LRR Motors, the official dealer of Geely Motors, the prices of Geely EX5 Pro and Geely EX5 Max have also increased. The price of Geely EX5 Pro has increased by Rs 2 lakh and the price of Geely EX5 Max by Rs 3 lakh.
CG Motocorp, the official dealer of Suzuki brand, has reduced the prices of Suzuki E Vitara (base) and Suzuki E Vitara (top). Sipradi Trading, the official dealer of Tata Motors, has not adjusted the prices as it has not been able to bring new vehicles.
The Finance Bill 2083 states that a 2.5 percent clean infrastructure investment fee will be levied on electric vehicles with a transaction value of up to Rs 2 million at the customs point. Customs duty will be 20 percent, road construction fee 5 percent and Value Added Tax (VAT) 13 percent on such vehicles. But later, Finance Minister Wagle said that a ‘footnote’ was missing and said that only 2.5 percent of the road construction fee would be charged on such vehicles.
‘There is a small footnote missing in the budget. We are correcting that,’ he had said at a program organized after the budget, ‘The road construction fee is being halved. The lowest one will be 2.5. The rest will be 5 percent.’
Similarly, a clean infrastructure investment fee of 20 percent has been fixed for vehicles with a transaction value of Rs 2 million to 3 million. In this, customs duty will be 20 percent on the vehicle, road construction fee will be 5 percent, and value added tax (VAT) will be charged at 13 percent.
Only 35 percent of the clean infrastructure investment fee will be charged on electric vehicles with a transaction value of Rs 3 million to 4 million. Electric vehicles with a transaction value of Rs 4 million to 5 million will be charged at 90 percent. Electric vehicles with a transaction value of Rs 4 million to 5 million will be charged at 130 percent. Customs duty of 20 percent, road construction fee of 5 percent, and VAT will be charged at 13 percent. All vehicles will be charged customs duty of 20 percent, road construction fee of 5 percent, and VAT will be charged at 13 percent.
