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E-scooters going nowhere due to lack of clear policy
Electric scooter distributors see their business going nowhere due to lack of an appropriate policy to promote these eco-friendly, battery-operated two-wheelers.Prahlad Rijal
Electric scooter distributors see their business going nowhere due to lack of an appropriate policy to promote these eco-friendly, battery-operated two-wheelers.
Even though the government provides subsidies to e-vehicle importers, sales have not risen as expected due to the uncertainty over road permits and driving licences, dealers said.
“It has been two years since we opened our outlet, but sales have not been satisfactory because of a pending decision regarding the issue of driving licences for e-vehicle riders,” said Surendra Manandhar, managing director of Asta Auto. “Our business is still at the start-up stage, and we have been able to sell only five units per month.”
Asta Auto, the sole distributor of Vmoto scooters, currently offers four models, the V-90s, VX-90s, V5 and Bee. According to Manandhar, e-vehicle dealers are yet to see a stable market and the government’s lack of concern has hampered the business.
At the same time, the indecisiveness of the Department of Transport Management with regard to road permits has hindered growth, new market entrants said.
“The government lured us into the environment-friendly vehicle business by granting import subsidies, but how can we grow if a permanent solution to the road permit issue is not found soon?” said Bijay Ray, CEO of Bela Motors. “Electric vehicles can be a boon to the economy as they will eliminate fuel expenses and promote a green environment.”
According to Ray, the electric scooters launched by Bella give a similar riding experience as their petrol counterparts at a very low cost. Prices of electric scooters start at around Rs125,000.
Bela Motors recently rolled out six models of electric scooters. “Our products have advantages like no fuel burning, affordable price range and zero noise and pollution. We encourage our customers to be part of the environmental solution not pollution,” the company said in a statement.
Potential customers are highly motivated and come for test drives, but lack of public awareness and policy decisions have affected buyer confidence, stakeholders said.
Meanwhile, the Department of Transport Management said that a working procedure to bring electric vehicles under the licence system had been sent to the Ministry of Transport for its consideration.
“The ministry is yet to reach a concrete decision on regulating electric vehicles, and the working paper has not been finalised,” said Chandra Man Shrestha, director general at the department.
“The concerned traders should pressurise the government to provide a permanent solution to the licensing issue. The department has done all it can to speed up the process, but paperwork is pending at the ministry.”
Two months ago, the Department of Transport Management had issued a 15-day deadline to electric scooter users to register their vehicles before bringing them out on the streets. But lack of working guidelines has hindered the registration process.
The government permits electric scooters with a capacity of less than 350 watts to be operated without registration across the country except in the Kathmandu Valley where scooters with a motor capacity of more than 1,200 watts only are permitted.
The department estimates that around 4,000 unregistered e-scooters are running on the streets of the valley.