Nepal’s electric vehicle (EV) market is experiencing explosive growth, reshaping the country’s transport landscape and signaling a shift toward sustainable mobility. This boom is fueled by a combination of government policies, expanding infrastructure, and increasing consumer interest. In this article, we decode the key market trends, policy impacts, and what the future holds for Nepal’s EV sector in 2025 and beyond.
Rapid Growth in EV Imports and Sales
Data from Nepal’s Department of Customs shows that EV
imports jumped from 3,870 units in fiscal year 2022-23 to over 11,466 units in
2023-24, a nearly 300% increase. This surge is driven by a growing preference
for electric cars, supported by government incentives and improved charging
infrastructure.
Government Policies Driving the Boom
Nepal’s government has played a pivotal role by slashing
import duties on EVs to as low as 15%, compared to 80% on traditional vehicles.
Additionally, public banks offered up to 90% financing for EV purchases, making
electric cars more affordable for middle-income buyers. Reduced electricity
tariffs for EV charging and subsidies for electric public transport further
stimulate demand.
Infrastructure Expansion
Over 400 public charging stations, including fast chargers
by the Nepal Electricity Authority (NEA), have been established nationwide.
These stations enable quick charging, reducing range anxiety and supporting
both private and commercial EV fleets.
Challenges and Policy Shifts
Despite the boom, recent policy changes have introduced
challenges. The Nepal Rastra Bank reduced maximum bank financing for EVs from
90% to 60%, and import duties on EVs were increased by 10% in the 2024-25
budget. These shifts risk slowing growth and highlight the need for consistent,
long-term policies.
Future Outlook: Opportunities and Targets
Nepal aims for 25% of new vehicle sales to be electric by
2025 and 90% by 2030, ambitious targets requiring sustained government support,
infrastructure development, and consumer education. The country’s abundant
hydropower resources offer a clean energy advantage, making Nepal a potential
regional leader in sustainable EV adoption.
Case Study: Sajha Yatayat’s Electric Bus Fleet
Kathmandu’s Sajha Yatayat cooperative has introduced around
40 electric buses, supported by dedicated charging stations. This initiative
reduces urban pollution and operational costs, demonstrating the viability of
electric public transport.
Conclusion
Nepal’s EV boom is a testament to effective policy,
infrastructure growth, and rising environmental awareness. With continued
support and innovation, Nepal is poised to lead South Asia’s electric vehicle
revolution.
