Nepal’s electric vehicle (EV) market is experiencing unprecedented growth, fueled by government incentives, rising consumer demand, and the country’s push to utilize domestically generated clean energy.

According to the Department of Customs, only 575 EVs were imported in FY 2019/20. By FY 2024/25, imports had surged to 13,569 units, alongside 4,958 petrol and diesel vehicles. The government’s policy to cut air pollution and promote EV adoption has been a major driver, though industry leaders continue to criticize policy inconsistency.

Nepal’s EV journey dates back decades, from the Tripureshwar–Suryabinayak trolleybus service in 1975 to the introduction of electric tempos in 1993. Modern private EV imports began in the 2000s with Mahindra’s “Reva,” but the market only took off in recent years due to quieter, cleaner, and more technologically advanced models. Lower running costs compared to fossil-fuel vehicles have further boosted appeal, though prices remain high by global standards.

“The market is diversifying in brands and designs, which has increased demand,” said Shyam Sapkota, president of the Electric Vehicle Manufacturers and Importers Association of Nepal. Despite unstable policies, tax breaks and private-sector participation are pushing growth, he noted.

Government targets include making 25% of private and 20% of public vehicle sales electric by 2025, and 90% private and 60% public by 2030, as part of a net-zero emissions goal by 2045. Last fiscal year, EVs accounted for 61.8% of total vehicle sales, up from 31.8% the previous year.

Yet challenges remain. Imports of electric buses and two-wheelers have lagged due to high costs, limited range, and inadequate charging infrastructure. Nepal Electricity Authority has built 62 public charging stations, with about 1,200 more run by private operators, but experts stress the need for a long-term, stable EV policy to maintain momentum.

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