Kathmandu- With Chinese electric vehicle (EV) brands imported by CG Motors facing financial turmoil—some even shutting down, Nepal’s banks are pulling back on loans for these vehicles.
Banks aren’t in the business of losing money, and financing EVs from struggling manufacturers is risky. If a company shuts down, spare parts become scarce, resale value plummets, and customer confidence evaporates. That’s why banks have quietly tightened their loan policies, sending out internal notices warning against financing vehicles from companies in crisis.
One of the biggest red flags? Dayun, an EV brand imported by CG Motors, has already collapsed in China. Another brand under CG’s portfolio, Neta (a sub-brand of startup Hozon Auto), is also in financial trouble. With this uncertainty, banks are hesitant to lend, and buyers are thinking twice before making a purchase.
A loan department official at a leading commercial bank confirmed the shift in policy: 'If we approve loans for brands that have already shut down, we’re setting ourselves up for trouble. We simply can’t take that risk.' While no official central directive has been issued, banks have started informally advising branches to be cautious when offering loans—even to trusted customers.
Dayun, a Chinese automobile company that pivoted to EVs in recent years, officially declared bankruptcy in November. CG Motors signed a deal in April 2024 to be its distributor in Nepal, and the first batch of Dayun EVs arrived in August. However, out of 150 imported vehicles, only 20-25 have been sold.
To clear out unsold stock, CG Motors is now offering massive discounts of Rs 400,000–500,000 on its Dayun EVs, originally priced at Rs 3.1 million. That’s a sign the company is desperate to move inventory before the market completely collapses.
Likewise, Neta isn’t doing much better. While the brand has received multiple government bailouts in China, it’s still on shaky ground. CG Motors initially bet big on Neta, but with sales stagnating, warehouses are now packed with unsold Neta V and Neta X models. Customers, wary of the brand’s uncertain future, are avoiding these vehicles.
With banks tightening loan approvals and manufacturers on the verge of collapse, buying a Dayun or Neta EV might not be the best idea right now. If these brands don’t survive, finding spare parts and after-sales service could become a nightmare.
