business

Why EVs Are Stuck at Customs: The Role of BYD Nepal and Dealers

by Khatapana

May 19, 2025 - 9 min read

Why EVs Are Stuck at Customs: The Role of BYD Nepal and Dealers

Why are electric cars piling up at Nepal’s borders? What’s BYD Nepal and other EV dealers got to do with it? A tax hike rumor might change everything. Find out before it’s too late.

If you’ve passed by Chobhar dry port recently, you might’ve thought there was an EV exhibition going on.

But nope, those aren’t showroom displays. They’re stuck.

From Rasuwagadhi to Tatopani to Bhairahawa, customs yards across Nepal are jam-packed with electric vehicles (EVs), and most of them aren’t even cleared yet. Chobhar alone has over 950 EVs just parked there, like cars waiting for a ride that never arrives.

So what’s going on?

In simple terms: dealers are rushing to bring in as many electric vehicles as they can, especially from China before the government possibly hikes customs duty.

Yep, you read that right. A rumor about tax has created one of the biggest EV traffic jams Nepal’s ever seen.

And at the heart of this chaos? BYD Nepal and most of the prominent EV dealers of Nepal, brands you’ve probably seen all over TikTok or in flashy Pokhara showrooms with those futuristic SUVs. It’s one of the fastest-growing EV brands in the country. More on that in a bit.

But first, let’s break down what’s really happening.

Why Are Dealers Importing EVs Like There's No Tomorrow?

Let’s imagine you're a car dealer.

You know budget season is coming. You hear some buzz that the government might increase customs duty on EVs, the very thing that makes them affordable right now. You also hear that a high-level economic reform committee has recommended this hike to make tax rates more “equal” between fuel-run cars and electric ones.

So what do you do?

You panic-import.

That’s exactly what’s happening right now.

Thousands of EVs from lesser-known brands to big names like BYD Nepal, are crossing the border before the budget lands. And customs offices? They’re freaking out. There’s barely enough space to unload more.

But here’s the twist.

It’s not just the fear of tax hikes driving this EV flood. Two other things are fueling this madness:

1. EV Prices in China Are Dropping Fast

Thanks to massive competition and better battery tech, Chinese EVs, especially BYD are becoming cheaper to produce. That means prices are falling.

So, dealers are thinking: "Hey, we can buy cheap now, pay current customs rates, and make a tidy profit when prices go up later."

2. Nepali Consumers Love EVs Right Now

Let’s be honest, fuel prices are brutal. EVs don’t just save you money, they also look pretty slick.

And brands like BYD Nepal, MG are hitting that sweet spot: modern design, great mileage, and zero fuel headaches. Their models like the BYD Atto 3 are already everywhere in Kathmandu.

But hold on, if everyone’s importing, why do so many showrooms say: “Sorry, no stock”?

Ah, that’s the trick. Many dealers are holding back. Not because they don’t have cars, but because they want to wait until prices rise post-budget. Smart business move? Maybe. But not so fun for buyers like you and me.

Inside Nepal’s Dry Ports: A Parking Lot Full of EVs

Imagine this: you’re a customs officer at Rasuwagadhi. You wake up to find truck after truck full of electric vehicles, most of them from China lining up outside your gate. And there’s nowhere left to park them.

That’s not fiction. That’s today’s reality.

Customs offices in Rasuwagadhi, Tatopani, and Bhairahawa are all saying the same thing: “We're full.”

Even the Chobhar dry port, meant to be a state-of-the-art inland terminal near Kathmandu, is practically overflowing. As of mid-May, over 950 EVs were sitting idle there, waiting to be cleared. Some haven’t even completed customs paperwork. They're just there.

According to officials like Ashish Gajurel from Nepal Intermodal Transport, if imports keep coming at this rate, they’ll need to find new parking lots just to hold the cars.

And yes, BYD, MG, and other EVs are big part of that surge. BYD’s lineup from the zippy Dolphin hatchbacks to the premium Atto 3 SUVs are in high demand. These are among the vehicles you see piling up at ports, waiting to hit the roads of Kathmandu, Pokhara, or maybe even Biratnagar.

But right now? They’re just sitting in silence, lined up like electric soldiers with no orders.

Will This EV Boom Backfire?

Let’s talk long-term.

Because as exciting as all this sounds, shiny new EVs entering Nepal by the truckload, BYD Nepal expanding its presence, people getting rid of fuel guzzlers, there’s a risk nobody’s talking about.

And it starts with one big question: What if this boom turns into a bust?

Here’s why that could happen:

1. There’s No Charging Infrastructure to Match the Hype

Think about it. If 10,000 new EVs enter Nepal in a few months but there are only a handful of fast-charging stations outside Kathmandu Valley, where are they going to recharge?

Without a proper charging network, especially on highways and in rural areas, this EV dream might hit a traffic jam of its own.

2. Dealers Might Be Hoarding Inventory

Yup. Some dealers are actually refusing to sell right now. Even if they have EVs in stock, they're holding them back, hoping that after the budget, prices will rise, and with that, their profits.

That means you, the regular buyer, are stuck waiting or overpaying.

A friend in Kathmandu recently tried to book a BYD Atto 3. The showroom folks said, “Sir, we can take your booking but delivery timeline is uncertain. And yes, the price might change.” Translation? We’re waiting for the tax hike to maximize margins.

3. Policy Uncertainty is Scaring Everyone

At the center of all this is the High Level Economic Reforms Committee’s proposal. One of its suggestions? Make the customs tax on EVs and petrol/diesel cars equal. And then add a green tax only to fuel-run vehicles.

While the second part sounds good (rewarding clean energy), the first part could kill Nepal’s EV advantage overnight.

Because let’s be honest. People aren’t buying EVs just to save the planet. They’re doing it to save money. If EVs become just as expensive as petrol cars? Boom. Demand drops.

Even BYD Nepal, despite its solid brand reputation, might struggle to convince middle-class families to switch if the price edge disappears.

The Reforms Committee’s Bombshell: Is the EV Tax About to Rise?

So what’s the real reason dealers are in full panic mode, importing EVs like it’s Black Friday?

Here’s the inside scoop.

Nepal’s High-Level Economic Reforms Committee, led by none other than Rameshwar Khanal, a respected former finance secretary, dropped a recommendation that has sent shockwaves through the auto industry.

In one neat little paragraph, they said:

“Let’s make the customs tax equal for both EVs and fuel vehicles.”

That might sound fair on paper. But in reality?

It’s a huge red flag for brands like BYD Nepal, dealers, and most importantly, buyers like us.

Because the only reason EVs are affordable in Nepal right now is because they enjoy massive tax breaks. If those vanish, so does your dream of driving an electric SUV without selling a kidney.

And the commission didn’t stop there.

They also floated the idea of adding a “green tax” on fuel-powered cars. Which sounds nice, until you realize that if both EVs and petrol cars pay the same customs tax, the green tax won’t actually help EVs stand out.

Dealers saw this coming from a mile away. Hence the import rush. Hence the BYD Nepal showrooms whispering “book now before the budget”.

Everyone’s trying to get ahead of a possible tax hike before the budget drops.

What Does This Mean for Us, The Nepali Buyers?

Let’s say you’re just someone who wants to ditch fuel and buy your first electric car. Maybe even a BYD Nepal Atto 3, because hey, it looks sharp, it’s silent, and it charges at home.

What should you actually do right now?

Here’s the no-fluff breakdown:

1. Don’t Wait Too Long

If the budget brings a customs hike, prices could jump overnight. If you’ve been eyeing an EV, it might be smarter to book sooner rather than later.

2. Ask the Right Questions

When you walk into a showroom, don’t just ask “how much is it?” Ask:

“Is this the pre-budget price?”
“Can I get delivery before the budget announcement?”
“Will my favorite EV dealer honor the current booking price?”

This helps avoid the “we’ll tell you later” trap.

3. Keep an Eye on the Budget Speech

Nepal’s annual budget usually arrives in Jestha 15. This year, all eyes are on the finance minister’s speech. That’s when we’ll know if EVs still get the tax love, or if it’s every car for itself.

4. Know That This Is Bigger Than Just You

If EV taxes go up, it won’t just affect BYD Nepal buyers. It could slow down the entire green vehicle movement in Nepal, one that’s finally picking up momentum after years of fuel dependence.

The Future of EVs in Nepal

Let’s zoom out a bit.

This EV wave isn’t just about a customs backlog or some budget rumors. It’s also a reflection of something much bigger; how fast brands like BYD Nepal have transformed Nepal’s car market.

Think about it.

Just a couple of years ago, when someone said “electric car,” most of us thought of tiny, underpowered hatchbacks that couldn’t even get you to Nagarkot and back.

But today? BYD is offering premium SUVs like the BYD Atto 3, futuristic sedans like the Seal, and even commercial electric vans, all packed with tech, style, and solid range.

In fact, BYD (which stands for “Build Your Dreams”) is the world’s biggest EV manufacturer, even bigger than Tesla by volume. And in Nepal, they’ve positioned themselves not just as an alternative, but as a lifestyle upgrade.

That’s why you’ll see BYD Nepal ads all over TikTok, their sleek blue cars parked in upscale cafes in Kathmandu, and influencers raving about “silent acceleration” and “zero fuel cost.”

But here’s the catch.

If taxes go up and prices skyrocket? Many potential buyers might back out. Because while the dream is real, so is the EMI.

That’s why this moment is so critical for the entire EV movement in the country.

So Is This Just a Fad, or Are We Really Going Electric?

Let’s be honest. It’s tempting to think this EV craze is just another Nepali trend.

Like Korean food, or TikTok dances, or NFTs (remember those?).

But this one’s different. And here’s why:

1. The Fuel Math Just Doesn’t Work Anymore

With petrol prices hovering around Rs. 170/litre, a regular fuel car now costs Rs. 10–12 per km to drive.

Compare that to an EV, like a BYD which runs at just Rs. 1.5–2 per km when charged at home. That’s not a joke. That’s your grocery bill saving you fuel money.

2. The Youth Don’t Want “Old-School” Anymore

Younger buyers want sleek dashboards, phone-controlled AC, panoramic sunroofs, and zero tailpipe emissions. And brands like BYD Nepal are delivering just that.

Owning a fuel-run car now feels old.

3. The World is Going Electric, And Nepal Isn’t Far Behind

From Delhi to Dubai, electric vehicles are the future. And Nepal with our clean hydropower and short-distance cities is perfectly suited for EV adoption.

Yes, we’ve got challenges; charging stations, policy uncertainty, and dealer hoarding. But the shift has already started.

And if the government plays this right, by supporting brands like BYD and MG instead of punishing them with surprise taxes, Nepal could actually become an EV leader in South Asia.

What Should You Do Next as a Buyer?

So now you know what’s going on, the jam-packed customs yards, the import rush, and the looming threat of a tax hike.

But what does all this mean for you?

If you’re in the market for an EV, here’s a no-nonsense checklist:

A. Push for Delivery Timeline Guarantees

Don’t fall for vague promises. Ask for exact delivery dates, and demand a written commitment that your booking won’t be impacted by any post-budget price hikes.

B. Stay Budget-Smart

If the government equalizes EV and fuel-vehicle customs rates, the final price difference might narrow, but don’t forget: EVs are still cheaper to operate. No oil changes, no petrol bills, no emission tax. That adds up over time.

C. Don’t Just Think Price, Think Purpose

Ask yourself: “Why am I buying an EV?” Is it just for savings? Or also for clean air, quiet roads, and future-proof driving?

If your answer includes all of that, then your decision goes way beyond just numbers.

Final Thoughts

Nepal is at a pivotal moment.

We’ve seen a historic surge in EV imports. Brands like BYD Nepal have changed how people view electric mobility. Buyers are excited. Dealers are stocked. The momentum is real.

But so are the risks.

A single budget speech, driven by a well-intended but potentially misguided policy recommendation could reverse years of progress in one fiscal swoop.

And for what? A few extra crores in customs revenue?

Nepal has a rare opportunity.

We have abundant clean electricity.
We have compact urban cities perfect for EVs.
We have early adopters already sold on the dream.

But if we punish that progress with higher taxes, we don’t just raise car prices, we risk killing the EV movement before it truly takes off.

This is not just about your dream EV, or even EVs in general. It’s about the kind of future we want to build:

➤ One where Kathmandu breathes cleaner.
➤ One where your car charges at night while you sleep.
➤ One where Nepal becomes a model for smart, sustainable transport in South Asia.

So here’s the bottom line:

Support clean mobility. Support smart policy. And if you’re planning to go electric, maybe don’t wait for the budget.

Your wallet, and the planet might thank you later.