Mahindra e2o and its prospects in Nepal

Mahindra has recently launched its new version in the new concept car  in Nepal. Mahindra e2o is an urban electric car hatchback manufactured by Mahindra Reva Electric Vehicles. The e2o is the REVA G-Wiz successor and was developed using REVA's technology, and has a range of 100 km (62 mi). The electric car was launched in India in March 2013 at a price between Rs 6.5 lakh (US$11,900) to Rs 8.5 lakh (US$15,670) depending on the city and before any subsidy.

Priced at Rs 2.2 million, the hatchback will go on sale at Agni Energy - the exclusive showroom of Mahindra Reva in Kathmandu.

The company claims Mahindra e2o  to be  perfect amalgam of the dramatic advancements in automotive technology. This car is powered by next generation lithium-ion batteries and a three-phase induction electric motor. This means the vehicle needs no changing of gears in bumper-to-bumper traffic. With a small turning radius, it makes every sharp turn a delight. The Mahindra e2o comes with a 6.2-inch touchscreen, factory fitted GPS navigation system, radio, DVD, Bluetooth and iPod connectivity. The full digital cluster, electrically operated wing mirrors, keyless entry and start/stop button, projector head lamps, LED tail lamps, reverse camera, four JBL speakers and two tweeters make the features of the Mahindra e2o comparable to most high end cars.

Argument
1.Weight: The e2o weight is 830 KG which is very heavy for a car this range, the weight certainly puts alot of pressure in the operation.
2.Space management: The e2o is very constricted and limited and has optimum use in regards to space management. Though it has 4 seats but in terms of comfort its a okay drive for short period. If you are thinking of a long drive then its not a solution.
3.Price: In context of Nepal the prices are very high. If the Government initiates no 200% custom duty, may be then it can attract people's attention or else its just a concept car in terms of high gadgetary and technology  
4.Battery: The car runs for 100 KM per charge that takes 5 hrs of full charging. It's limitation is its battery that makes it a city car that can't explore.

Crux 

If the Nepal Government initiates a policy in regards to use and import of this electric vehicle and cuts the 200% custom duty and sets the price up to 1 million then this car will certainly have a prospect. And in long term it will also promote the use of electric vehicles or else its against the public policy for the the Nepal government to pressure the public to pay more taxes in promoting petrol vehicle ............

Past Story of Electric Vehicle in Nepal In 2001, REVA Electric Car Company renewed the distributorship for Nepal with Eco-Visions Pvt. Ltd.  In 2002 (Feb), the first five REVA cars were imported into Nepal via Birgunj Customs under the promised 10 per cent Duty. In 2002 (Mar), Birgunj Customs refused to release the cars at the gazetted10% Duty, requested clarification from Kathmandu Customs Department. In 2002 (Apr), customs requested Ministry of Population and Environment (MOPE) if these five cars were really electric cars and if they required the conformity of production (COP).

The MOPE reply positively confirming that they are electric cars and did not require COP as they have zero pollution. Still, Finance Ministry refused to release the cars and held the file for no apparent reason.
In 2002 (Jul), in New Budget released the electric car tax was increased to 100 per cent from the existing 10 per cent. Eco-Visions applied to release at the original gazette percent but the Finance Ministry refused.  Eco-Visions then refused to pay the high tax and the five cars were left in Birgunj Customs Yard.  In 2005 (Dec), after 4 years of many attempts, the 5 REVA cars were finally released from Birganj Customs via auction to Eco-Visions and brought to Kathmandu for restoration, registration and sale. All the cars were in very bad condition.

In 2006 (Apr), those cars were fully restored and applied to be registered in Bagmati Zone.  While awaiting the number plates, the 5 cars were driven “ON TEST” in the Kathmandu Valley. In 2006 (Jun), the Minister of Science and Technology ordered the Department of Transport to register the cars as they are non-polluting.

In 2006 (Jun), the Dept of Transport ordered Ekantakuna to register the cars but they refused the order demand a Cabinet decision to register them. In 2007 (May), after getting unanimous approval from Department of Transport, the KMC and the Valley Traffic Police in support of registering the cars in Bagmati, the new Minister of Science and Technology were requested to get the Cabinet signature to register the cars in Bagmati Zone.

Due to the raise in tax on electric vehicle from 10 percent to 100, the rate of REVA is raised from Rs. 867,105 to Rs. 1,545,093. At 0% Duty and VAT free, it is only Rs. 698,177. REVA was waiting for cabinet’s decision to register it long time ago and cabinet is busy discussing in other important issues.
Finally REVA got permission from cabinet for its registration on 4th July 2007. We Nepalese hope that Nepal Government will be serious on environment issues and reduce the tax on electric vehicles in future because it is important to realize the problem of worsening environment of the city.