Nepal’s Chaudhary Group (CG) is facing mounting criticism over its decision to import electric vehicles (EVs) from Chinese startup manufacturers, many of which are now shutting down operations. This situation has left Nepali consumers in a lurch, raising serious questions about the company’s practices, transparency, and the long-term viability of these brands in Nepal’s growing EV market.

The Collapse of Neta EV: A Bold Dream Turned Sour

Neta EV, one of Chaudhary Group’s flagship EV brands, is in crisis. The Chinese manufacturer Hozon Auto, which launched the Neta brand in 2018, has ceased production entirely. In October, its main production facility in Zhejiang, China, halted operations. This decision was reportedly due to internal production issues, including a significant drop in sales and financial instability.

Reports from Zhejiang indicate that Hozon Auto has been cutting employee salaries and has failed to pay workers on time. These issues have severely disrupted operations, leaving the future of the brand in jeopardy. The production halt has directly impacted Nepali consumers, who heavily invested in Neta EVs under the assurance of quality and service from CG Motors, a subsidiary of the Chaudhary Group.

The situation is even more concerning as Neta EVs were marketed primarily in Nepal and Bangladesh, limiting their reach and making them vulnerable to operational and financial risks. This narrow market focus has been criticized as a short-sighted strategy that undermines consumer trust and exposes buyers to potential losses.

Dayun: Another EV Brand Hits Rock Bottom

Dayun, another EV brand brought to Nepal by CG Motors, has officially declared bankruptcy. The company, plagued by financial and operational challenges, filed for bankruptcy through China’s National Enterprise Bankruptcy and Reorganization Case Information Network.

The bankruptcy filings include Dayun Automobile Co. Ltd., Hubei Dayun Automobile, and Chengdu Dagun Automobile Group. Additionally, Jiangsu Kaisunda High-Speed Railway Transmission Technology Development Co. Ltd., a creditor, has filed claims against the company. This series of events highlights the instability of the Chinese startup brands introduced to Nepal by the Chaudhary Group.

Dayun EVs, launched in Nepal as recently as August, were touted as affordable and innovative alternatives for local consumers. However, the company’s financial collapse has left customers stranded, with no clear solution for after-sales services or spare parts availability.

A Pattern of Poor Choices by the Chaudhary Group

The Chaudhary Group’s decision to import vehicles from financially unstable Chinese startups instead of established multinational brands has been widely criticized. While these startups offered cost-effective options, their lack of reliability and long-term planning has created significant problems for Nepali consumers.

Critics argue that the group’s focus on short-term gains has led to the import of low-quality EVs, leaving buyers with vehicles that are no longer supported by the manufacturer. This approach has severely damaged consumer trust and the reputation of the EV market in Nepal.

Before this, Chaudhary Group has come under scrutiny for selling electric vans under the KYC name, a company that does not exist in any official capacity.

Nepal’s EV Market: A Dumping Ground for sub standard brands ?

Industry experts have raised alarms over the unchecked import of EVs into Nepal. Many of the vehicles brought in by CG Motors are only sold in Nepal and a few other markets like Bangladesh, making them particularly vulnerable to shutdowns.

“Even globally, there is uncertainty about the future of EVs,” said an EV industry expert. “In Nepal, importers are allowed to sell vehicles freely, without proper inspections or quality checks, creating problems for consumers and increasing the risk of Nepal becoming a dumping ground for EVs.”

This lack of regulation has allowed companies like the Chaudhary Group to dominate the market with little regard for the long-term impact on consumers or the environment. The group is currently selling around a dozen Chinese EV brands, including vans, microbuses, and passenger cars. Most of these brands are startups, leading to significant uncertainty about their future.

The Need for Stricter Regulations

The current situation has sparked calls for stricter regulations on the import and sale of EVs in Nepal. Consumer rights groups and industry experts argue that the government must establish stricter quality control measures to prevent unreliable vehicles from entering the market.

Regulating the EV market is crucial not only for protecting consumers but also for ensuring sustainable growth in Nepal’s transition to electric mobility. Without proper oversight, the country risks becoming a dumping ground for low-quality, unsustainable EVs that fail to meet global standards.

Neta Auto: Struggles Beyond Nepal

The challenges faced by Neta Auto extend beyond Nepal. In China, the brand is navigating significant financial struggles. Founder Fang Yunzhou recently admitted to unpaid salaries for senior management as far back as 2016. In late October, the company announced salary cuts for its research and development staff and corporate restructuring efforts to improve efficiency and reduce costs.

These issues have raised concerns about the company’s ability to sustain itself, even in its home market. Reports suggest that Nanning State-Owned Assets Supervision and Administration Commission had plans to take control of Neta Auto. However, the hearing was postponed, leaving the company’s future uncertain.

Consumer Fallout in Nepal

Nepali consumers are the biggest victims of these corporate failures. Many buyers of Neta EVs and Dayun vehicles are now left without access to after-sales services, spare parts, or warranties.

Despite assurances from CG Motors, consumers remain skeptical. Kiran Acharya, Marketing Head of CG Motors, stated that the company has not received official information about Neta Auto’s bankruptcy. However, he admitted that the Chinese manufacturer has sent letters assuring support for any issues.

This response has done little to alleviate consumer concerns, as reports from China paint a grim picture of the brand’s financial and operational status.

Despite this, it is reported that the sales of these vehicles in the Chinese and global market have significantly declined, customer trust has decreased, and the company is on the verge of bankruptcy.

The Road Ahead

The failure of brands like Neta EV and Dayun in Nepal underscores the importance of importing reliable, established EV brands rather than opting for cost-effective but unstable startups. The Chaudhary Group must reassess its strategy and prioritize consumer interests over short-term profits.

For Nepal, the incident serves as a wake-up call to strengthen regulations in the EV sector. The government must ensure that only high-quality vehicles are allowed into the market and that importers are held accountable for their choices.

As the world shifts toward electric mobility, Nepal has the opportunity to establish itself as a leader in sustainable transportation. However, this vision will only be realized with stricter oversight, better planning, and a commitment to quality over quantity.

The collapse of Neta EV and Dayun highlights the risks associated with importing EVs from unreliable manufacturers. The Chaudhary Group’s decisions have not only hurt its reputation but have also put Nepali consumers in a difficult position.

Moving forward, both the private sector and the government must work together to create a robust, reliable EV market that prioritizes quality, sustainability, and consumer trust. Without these changes, Nepal’s EV dream risks turning into a nightmare.