Nepal’s electric vehicle (EV) industry is at a pivotal moment. With EV imports soaring—nearly 10,000 vehicles in the first 10 months of fiscal year 2024-25 alone (Fiscal Nepal, 2025)—and government policies supporting cleaner transport, Nepal is rapidly advancing toward a sustainable mobility future. However, the scale and speed of this transformation depend heavily on international collaboration and investment. This article explores how global partnerships, foreign direct investment (FDI), and technology transfer are fueling Nepal’s EV industry growth, supported by real-world examples and policy insights.
The Importance of International Collaboration for Nepal’s EV Growth
Nepal’s EV market is still nascent and heavily reliant on imports, primarily from China and India. To build a robust domestic EV ecosystem—including manufacturing, assembly, battery recycling, and charging infrastructure—Nepal needs global expertise, capital, and technology.
Access to Advanced Technology and Expertise
International partnerships enable Nepal to access cutting-edge EV technologies such as advanced batteries, electric motors, and smart charging systems. For instance, Chinese companies like BYD and CHTC KINWIN have supplied thousands of EVs and electric buses to Nepal, bringing sophisticated features like AI-powered driver assistance and efficient battery management (Nepal Economic Forum, 2025; Global Voices, 2025).
Moreover, collaborations facilitate training Nepali technicians and engineers, building local capacity to maintain and innovate EV technologies. Zhu Xiansong, Director of Overseas Sales at CHTC KINWIN, emphasized plans to hire Nepali technicians and transfer know-how to support Nepal’s EV ecosystem (Global Voices, 2025).
Foreign Direct Investment (FDI) and Infrastructure Development
FDI is critical for financing EV manufacturing plants, charging infrastructure, and battery recycling facilities. The Nepalese government’s tax incentives and concessional customs duties on EVs and charging equipment (Kathmandu Post, 2025) create an attractive environment for foreign investors.
For example, proposals from Indian and Chinese firms to establish EV assembly plants in Nepal demonstrate growing investor confidence (Kathmandu Post, 2023). These investments not only reduce import dependency but also create jobs and stimulate economic development.
Policy Alignment with Global Climate Goals
Nepal’s commitment to the Paris Agreement and its Nationally Determined Contributions (NDCs) aligns with global climate action, encouraging international cooperation. By promoting EV adoption and clean energy use, Nepal attracts climate finance and technical assistance from multilateral agencies.
Case Studies Highlighting International Collaboration
1. Chinese EV Manufacturers and Nepal
Chinese EV brands dominate Nepal’s market share, with over 70% of EV imports originating from China in recent years (Nepal Economic Forum, 2025). Companies like BYD have supplied electric buses and passenger vehicles, while partnering with local firms for after-sales service and infrastructure development.
The reopening of the Tatopani border in 2023 facilitated smoother trade and increased EV imports from China, boosting Nepal’s EV availability (Nepal Economic Forum, 2025).
2. Asian Development Bank (ADB) and Charging Infrastructure
ADB has provided concessional loans to Nepal Electricity Authority (NEA) for installing over 50 fast-charging stations nationwide, enabling efficient EV operations and supporting public transport electrification (Farsight Nepal, 2023). This international financial support is essential for scaling infrastructure.
3. Norwegian Technical Assistance
Norway’s expertise in sustainable hydropower and EV policy has supported Nepal’s efforts to integrate clean energy with EV charging infrastructure, enhancing grid stability and renewable energy use (Kathmandu Post, 2025).
Challenges and the Way Forward
Despite progress, Nepal faces challenges in sustaining international collaboration:
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Policy Uncertainty: Recent hikes in customs duties and reduced bank financing for EVs risk undermining investor confidence (My Republica, 2024). Stable, long-term policies are crucial.
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Capacity Constraints: Nepal needs to strengthen institutional capacity to manage international projects and enforce quality standards.
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Balancing Imports and Local Industry: While imports drive initial growth, Nepal must foster local manufacturing and assembly to build a resilient EV sector.
Strategic Recommendations
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Enhance Policy Stability: Maintain favorable tax regimes and financing options to attract and retain foreign investors.
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Promote Public-Private Partnerships: Facilitate collaboration between international firms and local companies for technology transfer and infrastructure development.
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Invest in Skill Development: Expand training programs to build a skilled workforce capable of supporting EV manufacturing and maintenance.
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Leverage Regional Cooperation: Engage with South Asian neighbors for joint ventures, supply chain integration, and market expansion.
Conclusion
International collaboration and investment are accelerating Nepal’s electric vehicle industry growth by providing technology, capital, and expertise. Through strategic partnerships with countries like China, India, Norway, and multilateral agencies, Nepal is building a sustainable EV ecosystem that supports its climate goals and economic development.
Sustained policy support, capacity building, and regional cooperation will be key to transforming Nepal into a green mobility leader in South Asia.
References
Fiscal Nepal. (2025, May 25). Nepal imports nearly 10,000 EVs in first 10 months of FY 2024-25. Retrieved from https://www.fiscalnepal.com/2025/05/25/20488/nepal-imports-nearly-10000-evs-in-first-10-months-of-fy-2024-25/
Kathmandu Post. (2025, May 29). Government keeps taxes on electric vehicles unchanged for FY 2025-26. Retrieved from https://kathmandupost.com/money/2025/05/29/government-keeps-taxes-on-electric-vehicles-unchanged-for-fy-2025-26
Nepal Economic Forum. (2025, January 7). Decoding the rise of electric vehicles in Nepal. Retrieved from https://nepaleconomicforum.org/decoding-the-rise-of-electric-vehicles-in-nepal/
My Republica. (2024, August 8). Global EV momentum and Nepal’s ambitions. Retrieved from https://myrepublica.nagariknetwork.com/news/global-ev-momentum-and-nepals-ambitions-53-10.html
Global Voices. (2025, April 11). China makes inroads into electric transportation in Nepal. Retrieved from https://globalvoices.org/2025/04/11/chinas-vested-interest-in-electrifying-public-transport-in-nepal/
Farsight Nepal. (2023). 51 EV charging stations installed amid growing demand for four-wheeler EVs. Retrieved from https://farsightnepal.com/news/228
Kathmandu Post. (2023, September 25). Indians, Chinese apply to build electric vehicle plants. Retrieved from https://kathmandupost.com/money/2023/09/25/indians-chinese-apply-to-build-electric-vehicle-plants
- https://www.fiscalnepal.com/2025/05/25/20488/nepal-imports-nearly-10000-evs-in-first-10-months-of-fy-2024-25/
- https://kathmandupost.com/money/2025/05/29/government-keeps-taxes-on-electric-vehicles-unchanged-for-fy-2025-26
- https://nepaleconomicforum.org/decoding-the-rise-of-electric-vehicles-in-nepal/
- https://www.myrepublica.nagariknetwork.com/news/global-ev-momentum-and-nepals-ambitions-53-10.html
- https://www.b360nepal.com/detail/25440/electric-vehicles-accelerating-down-the-electric-highway-but-what-are-the-warning-lights-stating&rut=8789faf9bc1ccceb5342acc92f5c481d87d5324625006569d2dce159a7d3aaeb
- https://www.linkedin.com/pulse/electric-vehicles-imports-surge-nepal-booming-trend-challenges-gctif
- https://globalvoices.org/2025/04/11/chinas-vested-interest-in-electrifying-public-transport-in-nepal/
- https://kathmandupost.com/money/2025/04/30/nepal-s-ev-imports-surge-despite-cut-in-bank-financing
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