Nepal imported 7,967 units of electric cars, jeeps and vans worth Rs 18.62bn over the first nine months of fiscal year 2024/25. This surge, generating Rs 11.47bn in government revenue, underscores EVs’ rising popularity in the country, driven by favorable policies, environmental goals and economic incentives.
Foreign trade data for the first nine months of 2024/25, unveiled recently by the Department of Customs (DoC) shows, over 50 percent of imports, or 4,414 units, fell in the 51-100 kW motor capacity range which is ideal for Nepal’s urban and semi-rural roads. Smaller EVs (up to 50 kW) accounted for 2,783 units, while 742 units were in the 101-200 kW capacity range. Likewise, 17 units were in 201-300 kW motor capacity range and tow had capacity in excess of 300 kW.
China dominated Nepal’s EV market, supplying 74.08 percent of total imports of the country in the review period. EVs worth of Rs 14.49bn were imported form the northern neighbor in the review period, with brands like BYD and Dongfeng leading due to competitive pricing and advanced features. India follows with 2,023 units, or a market share of 25.39 percent, bolstered by Tata’s strong presence, as seen with models like the Punch EV. Imports from Germany (31 units), the US (5 units), South Korea (3 units) and Indonesia (3 units) were minimal, underscoring the China-India duopoly in the Nepali EV market.
In 2023/24, Nepal imported a total of 11,701 electric vehicles (EVs) - a growth of a whopping 188.91 percent compared to 2022/23 when 4,050 units of electric cars, jeeps, and vans entered the country. More than a third of total EV imports in 2023/24 came from China. A total of 8,938 EVs units came from China and remaining 2,763 from other countries. The total import value of these EVs was Rs 29.48bn.
The EV boom in Nepal aligns with Nepal’s Nationally Determined Contributions (NDC) which targets to increase the share of EVs in private passenger vehicles to 25 percent by 2025 and 90 percent by 2030. Lower import duties, which are 15-80 percent for EVs and over 240 percent for those powered by fossil fuel, and the availability of affordable cars loaded with advanced technologies have fueled demand for EV in Nepal.
The growing EV adoption is gradually reducing reliance on costly oil imports. Data shows Nepal saved Rs 11.07bn in 2023/24 due to a decline in the import of petroleum products.
