"In Nepal, we led the EV market. We hope to take that position back."
The largest car show in Nepal, NADA Auto Show 2024, opens in Kathmandu on Tuesday. Producers and representatives of electric vehicles (EVs) are in Nepal to take advantage of the country's rapidly expanding EV sector, which had a 149 percent rise in imports during the most recent fiscal year, which concluded in mid-July. 11,701 EVs worth Rs29.48 billion were imported by the nation during this time. The Post spoke with Balaje Rajan, vice president for International Business and chief strategy officer of Tata Passenger Electric Mobility, who is currently in Nepal for the auto show. They discussed the company's future plans, the competition from Chinese EVs, and Nepal's EV market. Take-outs:
In what ways do you see the Nepali EV market?
Regarding EVs, Nepal has adopted a fairly progressive position. Currently, EVs make up about 85% of the local passenger vehicle market. For Tata Motors, it's a big market because, having led the industry for the past few years, we want to stay there and we think our cars are ideal for Nepali roads. Thus, Nepal is a crucial market in my opinion. In my opinion, Nepal stands as one of the global benchmark automotive markets, with electric vehicles dominating the industry.
We used to be the market leader in Nepal for EVs, and we would like to reclaim that position.
Chinese electric vehicles are becoming more prevalent in the Nepali market. In what way do you see the contest? What tactics do you use to maintain your advantage?
Chinese electric vehicles are competitive worldwide, especially in India. We have consistently innovated our products in spite of several competitors, and we still hold a commanding lead of more than 70% of the market in our native India. Thus our products are better suited for the types of use cases that people in Nepal encounter. Our advantage will be our collaboration with Sipradi, which has created auto servicing ecosystems and charging stations throughout Nepal. We will be able to maintain our success thanks to the quality of our products and our collaboration with Sipradi.
Customers who purchase TATA EVs sometimes lament that the range is not as stated because to the disparities in the topography and infrastructure between Nepal and India. How is the business handling the problem?
At the dealership, we have been discussing the product's sales and real-world use range. The certification approach requires us to distinguish between the certified range. In India, we are required by law or regulation to disclose a specific ideal test condition. We take care, therefore, to make sure that the reference is not interpreted as the actual range in a situation like as Nepal, where the topography is much different. With our partner Sipradi, we are providing a real-life range indication at the point of sale. Going forward, we will also include the real-life range in our marketing starting with our current launch. in order for clients to be fully aware of the variety.
What percentage of the Nepali market does TATA EV hold? Which models are most well-liked by consumers?
Since the pro-EV policies come into place approximately twenty months ago, we have enjoyed a phenomenal run. We are happy to report that we led the market both the previous year and this year due to exceptionally robust retail growth. That is the position we want back. Customer response to our initial Nexon launch—which was followed by Tiago—was excellent. The Express T had a very high response in the fleet industry. We anticipate a great response to the Punch, which we are launching at the NADA Auto Show, which opens on Tuesday.
When do you think EVs will start to displace gasoline and diesel vehicles in Nepal's passenger car market, assuming demand for them keeps rising?
The import of gasoline and diesel vehicles would undoubtedly be significantly impacted in the medium run, in my opinion. In light of the fact that oil (fossil fuel) must be imported and that electricity is widely available, it is also the proper decision for Nepal. I consider the government's move to electric vehicles (EVs) to be quite innovative and positive. As you can see, 83 percent of consumers are purchasing electric vehicles in the medium term.
As you can see, 83 percent of consumers are purchasing electric vehicles in the medium term. With more EVs on the road, gasoline and diesel will likely only be used in specific, specialized applications, and EVs will eventually become the norm throughout the pool.
What is your opinion on Nepal's EV infrastructure? What needs to be improved upon?
The existing car-charging infrastructure in Nepal is ideally situated and can accommodate between 5,000 and 6,000 vehicles. Every 150 kilometers, there are charging stations with a mix of fast and slow chargers through our partner Sipradi. The largest and most reliable network of EV chargers is found in Siradi. When I spoke with clients earlier today (Monday), they were all rather positive with Nepal's current pricing infrastructure. Naturally, as the market grows, so too will the need for additional charging stations, and we intend to add them in line with that requirement. Where chargers are already installed, more chargers may be added in response to client demand. The infrastructure for charging EVs is currently adequate, and its future growth will be contingent upon the number of EVs.
Do you intend to establish an electric vehicle assembly plant in Nepal?
We don't yet have any plans, but two factors work together to determine any assembly. The first is the level of demand, and the second is the degree of incentive. First off, Nepal has demonstrated a strong need for EV adoption. If the market expands considerably, it could be worthwhile to think of establishing local assembly. Incentives make up the second aspect, and they are crucial since any investment must yield a profit. We will keep an eye on the matter, but at this point, the size of the market and the laws in place do not strongly support local assembly.
