KATHMANDU: The affordable EV hatchback segment in Nepal is set to become more competitive with the arrival of the facelifted Tata Tiago EV and a significant price reduction for the Leapmotor T03.
The Tata Tiago EV has been one of Nepal’s most successful small electric cars since its launch. Meanwhile, the Leapmotor T03 entered the market at a similar price point but failed to gain the same level of customer acceptance.
Previously, the Tiago EV’s top variant was priced at Rs. 2.999 million, while the Leapmotor T03 was available at Rs. 2.899 million. Despite the small price difference, the Tiago EV remained the stronger seller.
That gap could now narrow due to changes in Nepal’s EV tax structure.
The Leapmotor T03 previously fell into a higher-tax category, attracting 20 percent customs duty, 15 percent excise duty, 5 percent road construction tax, and 13 percent VAT.
Under the new budget provisions, EVs with a CIF value below Rs. 2 million are subject to 20 percent customs duty, 2.5 percent Clean Infrastructure Development Tax, 2.5 percent Road Construction Tax, and 13 percent VAT.
As a result, the overall tax burden on the T03 drops from 63.74 percent to 45.94 percent, a reduction of 17.8 percentage points.
Industry estimates suggest the T03’s retail price could fall by around 10 to 12 percent, although exchange rate fluctuations may affect the final figure.
What’s new in the Tata Tiago EV?
The 2026 Tata Tiago EV receives a major design update.
It gets a redesigned front fascia, new grille, revised front and rear bumpers, connected-style taillights, aero-optimized wheels, slim LED headlamps, and updated LED DRLs.
The cabin also sees significant changes. It features a floating infotainment screen, a two-spoke steering wheel, a dual-tone dashboard, and a new digital instrument cluster.
The updated Tiago EV comes equipped with several new features, including a 360-degree camera, six airbags, rear AC vents, dual wireless chargers, a 10.25-inch touchscreen infotainment system, a Tire Pressure Monitoring System (TPMS), and a six-speaker audio setup.
These additions enhance both safety and convenience while giving the hatchback a more premium feel.
The Tiago EV continues with a 24 kWh battery pack and a 48 kW electric motor.
What does the Leapmotor T03 offer?
The Leapmotor T03 benefits from technology developed under the backing of Stellantis.
It comes with the iFlytek 3.0 voice interaction system, allowing users to control calls, navigation, media, and other functions through voice commands.
Built on Leapmotor’s proprietary EV platform, the T03 is equipped with a high-efficiency electric motor.
Its biggest strengths are battery capacity and power output. The hatchback features a 37 kWh battery pack and a 70 kW electric motor, giving it a clear advantage over the Tiago EV on paper.
Conclusion
Both models are expected to be attractive options for buyers looking for an affordable EV in 2026.
The Tata Tiago EV offers a refreshed design, modern features, and the advantage of Tata’s established service network.
The Leapmotor T03, on the other hand, could become one of the most value-focused EVs in the segment if its expected price reduction materializes.
The competition between these two hatchbacks is likely to become much more interesting in the coming months.
