KATHMANDU: The government is presenting the budget for fiscal year 2026/27 today, May 28, 2026. The automobile sector is also closely watching the new budget, especially possible changes in vehicle taxation.
Like previous years, the government is expected to revise automobile tax policies. However, there is still uncertainty about what kind of changes will be introduced this time.
Several auto companies are preparing to launch new models in Nepal immediately after the budget announcement. Among them, three SUVs are likely to enter the market first.
Omoda E5 facelift
The first model expected to launch is the updated Omoda E5 SUV. According to SPG Automobiles, the official distributor of Omoda/Jaecoo in Nepal, sales of the facelift model will begin soon after the budget announcement.
The Omoda E5 has already established a strong presence on Nepali roads. The facelift version is expected to get major design and feature updates.
The company has not yet disclosed details about the motor, battery pack, dimensions, or ground clearance. However, a demo unit of the new E5 has already arrived in Nepal.
Toyota RAV4 Hybrid
The sixth-generation Toyota RAV4 Hybrid is another SUV expected to launch after the budget. The model will be brought to Nepal by United Traders Syndicate Pvt. Ltd., the official distributor of Toyota vehicles.
Toyota remains one of the strongest brands globally in hybrid technology. The new RAV4 will be offered with a 2.5-liter four-cylinder hybrid powertrain. Internationally, the front-wheel-drive hybrid version produces 226 horsepower, while the all-wheel-drive version generates 236 horsepower. The new-generation RAV4 is available only with hybrid and plug-in hybrid powertrains in global markets.
Hyundai Ioniq 9
Hyundai’s flagship electric SUV, the Ioniq 9, is also waiting for the new budget before entering the Nepali market. Laxmi Intercontinental Pvt. Ltd., the official distributor of Hyundai in Nepal, plans to launch the full-size electric SUV based on the new tax structure.
The company has already started promotional activities for the model in Nepal.
The Hyundai Ioniq 9 comes with a large 110.3 kWh battery pack. The rear-wheel-drive variant features a 160 kW electric motor, and this version is likely to arrive in Nepal.
