KATHMANDU: The electric vehicle business is becoming a litmus test for Nepal’s corporate sector. Business groups that have long been successful in industries outside automobiles are now rapidly entering the EV market. The trend is raising questions about the sector’s long-term sustainability.
Companies with decades of experience in hospitals, schools, hotels, food trading and other businesses are now importing electric cars, scooters, motorcycles, light commercial vehicles and even buses from China. While this has intensified competition, industry observers warn that it could also create new challenges for Nepal’s growing EV ecosystem.
Success in one industry does not automatically guarantee success in the automobile business. Selling vehicles is only the beginning of the responsibility. Importers are expected to provide spare parts, after-sales service and warranty support for many years after a vehicle is sold.
Concerns over after-sales service are increasingly being raised on social media and online platforms dedicated to electric vehicles. Consumers frequently complain about poor service, long delays in obtaining spare parts, high parts prices and unsatisfactory experiences at service centers.
Industry experts say the problem has been aggravated by the lack of strict requirements for becoming an authorized vehicle importer. At present, importers mainly need proof of official dealership, while little attention is given to their ability to provide long-term service, spare parts and warranty support.
“As there are no strong criteria for becoming an importer, anyone can bring vehicles into the market,” industry stakeholders say. “There has been little focus on protecting consumers through proper after-sales service, spare parts availability and warranty commitments.”
According to Prem Lal Maharjan, President of the Consumer Welfare Protection Forum, selling a vehicle in a country like Nepal means taking responsibility for the customer for at least 10 to 15 years.
“Many businesses failed to understand that selling a vehicle comes with a long-term obligation. The government also allowed the sector to operate without adequate oversight. As a result, consumers increasingly feel they are being treated unfairly,” Maharjan told MeroAuto.
He said the government has several opportunities to make businesses more accountable but has largely failed to do so.
Regulatory bodies, including the Department of Transport Management and the Ministry of Industry, Commerce and Supplies, have been expected to enforce greater accountability among importers. However, little progress has been made. Instead, they often argue that consumers themselves need to become more aware.
Industry observers believe Nepal’s automobile sector cannot become stronger or more organized under the current system. Importers should be required to guarantee spare parts availability and after-sales service before they start selling vehicles. They also argue that the government must introduce stronger policies, while consumers may need to increase pressure for reforms to protect their interests.
