Nepal has witnessed a significant shift in its automotive market, with electric vehicle (EV) imports surpassing those of petrol-powered vehicles in the first half of the current financial year. According to data from Nepalās Department of Customs, the country imported 12,974 four-wheeled vehicles between mid-July 2023 and mid-January 2024, of which 7,349 were battery-electric vehicles.
The Kathmandu Post reported that Nepal is on track to completely replace combustion engine vehicle imports with electric vehicles by 2031. The term “electric vehicles” encompasses private cars, mini-buses, and passenger buses, as Nepalese statistics do not distinguish between these categories.
China and India emerged as the primary sources of Nepalās EV imports. Of the 7,349 electric vehicles imported, 5,434 came from China, while 1,890 were sourced from India. Only 25 electric vehicles were imported from other countries, including South Korea, Germany, and the United States.
The value of these imports reflects the dominance of Chinese manufacturers. Electric vehicles from China were valued at 14.36 billion Nepalese rupees (approximately 99.3 million euros), averaging 18,270 euros per vehicle. Imports from South Korea totaled 2.93 billion rupees (20.3 million euros), with an average cost of 10,740 euros per vehicle. The 25 vehicles from other countries, including Germany and the US, were significantly more expensive, averaging 44,800 euros per vehicle.
Rajan Babu Shrestha, Vice President of the Nepal Automobile Dealers Association, attributed the growth in EV imports to lower bank interest rates, which have encouraged the purchase of private and commercial vehicles, particularly minibuses for passenger transport. “Lower interest rates have boosted the import of private and commercial vehicles,” Shrestha said. However, imports of trucks and construction vehicles have declined due to reduced government spending on infrastructure projects.
The current financial year runs until mid-July 2025. In the previous financial year, which ended in mid-July 2024, Nepal imported 11,701 electric vehicles worth 29.48 billion rupees (203 million euros), marking a 149% increase from the year before. If the second half of the 2024/25 financial year mirrors the first, EV imports are expected to rise further, though likely not at the same exponential rate.
This shift underscores Nepalās growing commitment to reducing its reliance on fossil fuels and transitioning to cleaner energy sources in the transportation sector.