Nepal Electric Vehicle Sale: There is a quiet revolution on the streets of Nepal. Electric vehicles (EVs) have become so fast in the last one year that they have captured Nepal’s automobile market. According to recent reports, 76% sales of passenger vehicles and 50% sales of light commercial vehicles are now electric. Until five years ago, electric vehicles did not exist in Nepal’s vehicle market. Today, Nepal is just behind some global leaders like Norway, Singapore and Ethiopia in EV market share and a global average of 2024 is far ahead of 20%. This rapid change is not a coincidence, rather it is the result of government policies, abundant hydroelectric resources and strong cooperation of China, which is the world’s largest battery -powered vehicle manufacturer.
Use of hydroelectric for a clean future
The EV Boom of Nepal is associated with its huge hydroelectric capacity. The country has 83,000 MW hydroelectric capacity, of which 44,000 MW is economically possible. Nepal generates about 100% of its power renewable hydroelectrics. This abundant electricity has electrified 94% of the population by 2024, while the figure was less than 50% two decades ago.
After the end of load shedding in 2018 and invested in the credibility of the grid, there was a favorable environment to adopt EV in Nepal. Charging an electric vehicle in Nepal costs about fifteenth from the petrol vehicle, making EV not only the environmentally friendly but also financially beneficial.
Government policies played an important role in this change.
In 2021, Nepal reduced the import duty on EV to a maximum of 40%, while it is 180% on the Ice (internal combustion engine) vehicles.
This tax difference made the EV economical and reduced the price difference with fossil fuel vehicles.
Also, Nepal Electricity Authority (NEA) is working to increase charging infrastructure. So far 1,200 charger private companies have installed and there are plans to install 500 more and charger on major cities and highways. The initiative is important towards reducing Nepal’s Net-Zero emission target by 2045 and lowering $ 2.5 billion fossil fuel imports in 2022/23.
Role of China
China’s role in Nepal’s EV market is decisive. China is the world’s largest battery vehicle manufacturer, and companies like Byd, Seres, NETA, XPENG have provided affordable and high-quality EVs in Nepal.
For example, byd dealer Yamuna Shrestha, who started with a showroom, is now running 18 dealerships and is estimated to sell 4,000 vehicles in 2025.
These vehicles come with a long range and facilities such as ground clearance suitable for bumpy terrain.
The Indian vehicle manufacturer, who once dominated the Nepal market, lags behind in competing in price and innovation. This change has also started a discussion that China is making Nepal a strategic market for its global EV expansion in a geographical point of view.
The results are clear:
In the first four months of 2024/25, Nepal imported 3,487 EVS, priced at Rs 8.37 billion Nepali.
Public transport is also becoming increasingly electric.
Sajha Yatayat has 41 electric buses and 100 new buses donated by China will soon join.
However, 800 electric buses will be required to completely change the transport mechanism of Kathmandu.
Challenges and opportunities
Nepal’s EV revolution is successful in many ways, but there are still challenges:
The pace of adopting EV in two-wheelers is slow, while neighboring India dominate the electric scooter market.
Charging infrastructure is limited; By 2023, there were only 250 charging stations in the country.
Most of the country’s population is dependent on public transport and two-wheelers, ie EV Boom is mainly limited to urban middle class car owners.
Solution:
Subsidy and inclusive policies will be necessary to deliver EVs to rural and lower-age classes.
Despite this, the advantages are clear:
EVS has reduced Nepal’s energy-related 50% CO2 emissions.
Air pollution has decreased in Kathmandu, where a population of 30 lakhs once struggled with smog.
EV travel to India
Compared to Nepal’s sharp jump, India’s EV market is growing at a steady speed.
In 2023, the sale of electric cars in India was just 2% of the total.
80,000 electric cars were registered, which is a 70% increase year-on-year.
Two-wheele EV in India leads the market.
Scooters and motorcycles account for 62% of India’s EV sales.
Brands like Ola Electric, Ather Energy, Hero Electric are ahead in it.
Government Schemes:
India has targeted to electrically 30% new vehicle sales by 2030.
PLI (Production Linked Incentive) Scheme
Domestic EV and battery manufacture is being promoted.
Companies like Tata Motors, Mahindra, Ola Electric are increasing production.
