If you thought the new EV tax policy only affected mid-range electric cars, think again. The BMW iX1 eDrive20 has seen one of the biggest single-model price hikes in Nepal’s automotive market following the government’s revised tax structure.
How Much Did the Price Go Up?
Laxmi Premium Motors, the official importer and distributor of BMW vehicles in Nepal, has revised the price of the BMW iX1 eDrive20 from Rs. 1 crore 99 lakh 96 thousand to Rs. 3 crore 29 lakh 96 thousand.
That is a jump of Rs. 1 crore 30 lakh on a single model.
To put it simply, the car now costs about 65% more than it did before the new budget came into effect.
Why Such a Big Increase?
The Nepal government changed how EVs are taxed through the budget for fiscal year 2083/84. Earlier, the tax was based on the motor’s power capacity in kilowatts. Now, it is based on the customs value of the vehicle.
This shift hits expensive vehicles the hardest. Since the BMW iX1 falls well above the Rs. 50 lakh customs value threshold, it attracts the highest Clean Infrastructure Investment Fee of 130%. Naturally, that massive tax burden gets passed on to the buyer.
The iX1 is not the only BMW model affected. Laxmi Premium Motors confirmed that prices across multiple BMW electric models have been revised, with different models seeing different levels of price adjustment depending on where they fall in the new tax brackets.
Premium EVs Take the Biggest Hit
Auto industry experts have pointed out that luxury and premium EV brands are bearing the biggest impact of this new policy. While budget-friendly EVs with lower customs values face much smaller taxes, high-end models like those from BMW end up in the steepest tax bracket.
This is a significant shift in how premium electric vehicles are priced in Nepal, and it may push many potential buyers to reconsider their options.
What BMW Says
Despite the price increase, Laxmi Premium Motors says BMW electric vehicles continue to offer advanced technology, strong safety features, a premium driving experience, and zero-emission performance. The company has also reaffirmed its commitment to making the latest BMW EVs available to Nepali customers.
For now, though, owning a BMW electric car in Nepal has become considerably more expensive, and the new tax structure shows no signs of changing anytime soon.