Jai Golchha

Director, Shangrila Motors P. Ltd.

Jai Golchha, the Director at Shangrila Motors P. Ltd., a subsidiary of Golchha Organizations, has a deep-rooted connection to the automotive world that spans over five decades. His journey into the industry began long before his official involvement, as his grandfather, a visionary entrepreneur, was one of the first to import cars into Nepal, laying the foundation for the family’s automotive legacy.

From a young age, Jai was captivated by the thrill of Go Karts, which sparked his lifelong passion for automobiles. Growing up in an environment where the hum of the automotive world was ever-present, he was often immersed in family discussions about cars and business. These dinner table conversations provided Jai with an early and profound understanding of the industry.

Fortunate to inherit this legacy, Jai never saw his career path as a mere job but as a natural extension of his upbringing. With a strong sense of commitment, he joined the family business, aiming to honor and build upon the foundation laid by previous generations. Today, as the Director of Shangrila Motors, Jai continues to drive the growth and evolution of the business, embracing both the challenges and opportunities that come with leading it into the future.

Let’s start by discussing the current state of Nepal’s automotive market. How have recent years impacted the industry?

The past two years have been incredibly challenging for Nepal’s automotive market. We’ve seen a sharp decline in the sales of traditional vehicles, particularly small-sized cars, which were once a popular choice for the middle-class segment. The decline has largely been driven by economic constraints, limited financing options, and changing consumer preferences. Consumers are becoming more cautious about spending, and many are looking for more sustainable, cost-effective alternatives.

Amid these challenges, electric vehicles (EVs) have emerged as a promising solution. Can you explain what’s driving this shift toward EVs in Nepal?

Absolutely. The rise of electric vehicles in Nepal has been a positive shift, especially in the face of traditional vehicle sales declining. There are several factors contributing to this change. First, there’s a growing environmental awareness among consumers, and EVs offer a greener alternative to conventional vehicles. Secondly, rising fuel prices have made EVs more attractive due to their lower operating costs. Additionally, government policies, such as subsidized import duties and taxes for green energy solutions, have made EVs more affordable and accessible to the masses.

The decline in sales of small-sized cars has been quite significant. How are these challenges impacting the conventional car market?

The steep decline in small car sales has certainly been a concern. Financing constraints are one of the biggest barriers for potential buyers, making it harder for them to afford traditional vehicles. This has led many consumers to explore electric alternatives, especially compact EVs that offer similar affordability but with lower operational costs. The demand for these EVs is growing, and I believe this trend will continue as more consumers begin to recognize the benefits of EVs in terms of cost and sustainability.

Can you share your thoughts on how the Citroën eC3 performed in the market, and how the introduction of the Leapmotor C10 changed the landscape?

Despite the growing interest in EVs, there have been challenges in offering vehicles that fully meet consumer expectations. For example, for a long time for us, the Citroën eC3 was the only available option. While the eC3 is a well-priced, compact SUV with good specifications and modern features, it didn’t perform as expected in the market. It lacked some fancy features, and the increasing competition from Chinese EVs made it harder to gain a significant market share.

However, a significant turning point came when Leapmotor introduced the C10, which quickly gained traction. It offered modern features, reliable performance, and attractive pricing. By the end of December 2024, over 100 units of the C10 had been delivered, and we continue to see increasing consumer interest.

What’s next for Leapmotor in Nepal? What new models are you excited about?

We’re very excited about the upcoming introduction of the Leapmotor T03, a small hatchback designed for entry-level buyers. It’s an affordable, compact EV that is perfectly suited for the mass market. The T03 offers many advantages—low cost of ownership, perfect in size, and the environmental benefits of being an EV. We believe it has the potential to revolutionize the electric SUV market in Nepal, attracting a broad range of consumers, including those who are transitioning from traditional small-sized cars.

One of the biggest concerns about EVs is the high cost of the batteries. How do you see this affecting the future of EVs in Nepal?

The cost of EV batteries remains one of the most significant challenges, often accounting for up to 40% of the vehicle’s price. This makes EVs expensive upfront, and while we’ve seen some discussions about repairing batteries at the cell level, Nepal currently lacks the infrastructure to support this. Additionally, the long-term viability of EVs in Nepal is still uncertain, particularly in terms of resale value and long-term performance.

That said, despite these concerns, consumer confidence in EVs is growing. As the market matures and more options become available, I believe these issues will be addressed over time.

Government tax policies have been volatile in recent years. How has this affected the EV market?

The frequent changes in government tax policies have created significant disruptions for businesses in the automotive sector. Each year, new regulations are introduced, which forces us to scrap plans and adjust our strategies. This volatility makes it very difficult to plan effectively for the long term. To ensure more stable growth in the EV market, I believe it’s crucial that we have at least five years of policy and tax stability. This would allow for more mature, predictable market growth and enable businesses like ours to make long-term plans with confidence.

Finally, with so many EV brands entering the market, how do you see the competitive landscape evolving?

The market is becoming increasingly competitive, with over two dozen EV brands in Nepal’s right-hand drive market. While this brings a wide range of choices for consumers, it also means that many brands will struggle to survive in the long run. Simply selling a few cars won’t cover the operational costs. In the future, the focus will shift towards quality, sales support, and after-sales service. Warranty and customer support will become even more important as the market matures. In the long term, these factors will play a critical role in driving success and building brand loyalty.