TRIBHUVAN UNIVERSITY: FACULTY OF MANAGEMENT

THAMES INTERNATIONAL COLLEGE

MICROECONOMICS: DEMAND OF ELECTRIC VEHICLE IN NEPAL

BY: ZENISH THAPA INSTRUCTOR

BBA 1 SEM TILAK MAHARA
SEC A
 INTRODUCTION

ELECTRIC VEHICLE:

An electric vehicle is a vehicle that runs fully or partially on

electricity. Unlike conventional vehicles that just use fossil fuels, e-
vehicles use an electric motor that is powered by a fuel cell or batteries.
EVs first came into existence in the mid-19th century, when electricity
was among the preferred methods for motor vehicle propulsion,
providing a level of comfort and ease of operation that could not be
achieved by the gasoline cars of the time. Internal combustion engines
were the dominant propulsion method for cars and trucks for about 100
years, but electric power remained commonplace in other vehicle types,
such as trains and smaller vehicles of all types.
In the 21st century, EVs have seen a resurgence due to technological
developments, and an increased focus on renewable energy and the
potential reduction of transportation's impact on climate change, air
pollution, and other environmental issues. Project Drawdown describes
electric vehicles as one of the 100 best contemporary solutions for
addressing climate change.
DEMAND AND DEMAND FUNCTION.

In economics, demand is the quantity of a good that consumers are

willing and able to purchase at various prices during a given period of
time. The relationship between price and quantity demand is also called
the demand curve.
FACTORS INFLUENCING DEMAND:
1)The price of the commodity
2) Price of related good
3) Personal Disposable Income
4) Tastes or preferences
5) Consumer expectations about future prices, income and
availability
6) Population

The demand equation is the mathematical expression of the relationship

between the quantity of a good demanded and those factors that affect
the willingness and ability of a consumer to buy the good.
Let us assume that the quantity demanded of a commodity X is Dx,
which depends only on its price Px, while other factors are constant. It
can be mathematically represented as:
Dx = f (Px)
However, the quantitative relationship between Dx and Px is expressed
as:
Dx = a – bPx
Where a (intercept) and b (relationship between Dx and Px) are
constants.
Demand of electric vehicle in Nepal.

According to Electric Vehicle Association of Nepal (EVAN), the total

number of EVs in Nepal stands at around 21,000 as per the 2017 data.
That figure is obviously much smaller compared to millions of
internal combustion engine (ICE) vehicles currently plying on
Nepal’s roads.
In recent times, electric vehicles have become a subject of attraction
for many people in Nepal. In recent times, electric vehicles have been
considered as an excellent alternative to buoyant fuel prices due to
insufficient power consumption.
The policy and customs exemptions brought by the government to
make digital Nepal and electric vehicle friendly have given impetus to
the use of electric vehicles. As a result, interest in electric vehicles has
increased.
Due to available battery capacity, eco-friendly features and other
features in electric vehicles, the demand for electric vehicles has been
significant.
According to customs department data, 6,821 units of electric vehicles
costing Rs.
A.W. During the period 77/78, two thousand 290 units of electric
vehicles worth Rs.367.87 million were imported. A total of 4,499
electric vehicles worth Rs 1.36 billion were imported in that financial
year (12 months).
Recently more than 15 brands of electric cars including Kia, Tata,
BYD are available in Nepal. Similarly, there are a significant number
of brands of two- and three-wheeled electric vehicles, including
motorcycles and scooters.
Electric vehicles are being imported in Nepal market from various
countries including China, India, Korea, USA, France and Japan.
According to customs department data, most of the electric cars, vans
and other vehicles sold in Nepal are Chinese brands.
According to the data, 4,733 vehicles worth Rs 2.62 billion have been
imported from China in the current financial year.
Two wheelers and three wheelers are also likely to be imported from
China.
Current A.W. During the eight months of 78/79, 1,912 units of
electric vehicles worth Rs 1.20 billion were imported from India, 132
units from South Korea worth Rs 498.08 million and 15 units from
the United States valued at Rs 62.4 million. 108.8 million from Japan
and 28 units worth Rs 34.62 million have been imported from France.
In the same period. In the year 77/78, 1,698 electric vehicles worth Rs
242.87 million have been imported from China, 583 units worth Rs
989,000, three units of electric vehicles worth Rs 81,000 from
India.According to the data, the number of electric vehicles entering
Nepal has increased.
More electric vehicles worth Rs 962.98 million have been imported
from China alone in the year 078/79 as compared to the financial year
2077/78.
How many vehicles of what capacity?
In the Nepalese market, various brands of electric vehicles with
different motor capacities are going public. Recently, cars, jeeps and
vans with a minimum capacity of 17 kW to 100 kW and 100 kW to a
maximum of 300 kW have been imported into Nepal.
According to the customs department, 625 vehicles worth at least Rs
1.66 billion have been imported from China, France, India and South
Korea in the last eight months.
While 13 units of motor capacity of 100 to 150 kW have been
imported from USA, 684 vehicles of motor capacity of 150 kW to 200
kW have been imported from China and Japan and 33 vehicles motor
capacity of 100 to 200 kW have been imported from Korea.
ECO FRIENDLY IN NATURE.
PEOPLE CONCERNED ABOUT ENVIRONMENT.
PRICE IS COMPARATIVELY LOW THEN FUEL VEHICLE.

THE HIGH PRICING OF FUELS HAD LED THE DEMAND

OF EV RISE.
REFERENCES:
1) WIKIPEDIA
2) https://www.reogma.com/
3) https://himalsanchar.com/

CONCLUSION:
THE RISE OF DEMAND OF ELECTRIC VEHICLE HAS BEEN
INCREASED FROM THE PAST DUE TO THE RISE OF THE FUEL
AND PEOPLE CONCERNING ABOUT ENVIRONMENT. HENCE IT
HAS ALSO HELPED IN THE CONSUMPTION OF LESS FUEL
MAKING THE DEMAND OF TRANSPORTATION CHEAPER AND
HELPING IN THE REDUCTION OF THE DEMAND OF FUEL
VEHICLE.

THANK YOU..