iStockWhen most people think of electric vehicle (EV) leaders, countries like Norway or China come to mind. But a surprising contender is now turning heads worldwide: Nepal. Yes, the Himalayan nation has quietly pulled ahead in the EV game — with a staggering 76% of all new cars sold now electric. Nepal’s electric vehicle revolution: How the Himalayan nation quietly became a global EV success story- Nepal is making headlines as one of the world’s fastest-growing electric vehicle (EV) markets. With over 76% of all new passenger vehicle sales now electric, the small Himalayan nation has quietly positioned itself as a leader in EV adoption, outpacing global averages and even beating wealthy countries like Germany and the US. Powered by clean hydroelectric energy, smart policy moves, and affordable imports from Chinese EV giants like BYD, Nepal’s story is a blueprint for how developing countries can leap into a clean transport future. Nepal’s EV sales cross 76% mark, outpacing global adoption rates In the fiscal year 2024–25, more than three-quarters of all new cars sold in Nepal were electric. That’s a staggering figure considering the global average for EV sales sits around 20–25%. Even more impressively, light commercial vehicles (LCVs)—such as small vans and pickups—saw 50% market share from electric options. This rapid EV adoption is turning Nepal into an unexpected yet powerful player in the electric mobility transition. What’s driving this remarkable shift? Let’s explore the key reasons behind Nepal’s electric vehicle boom. Clean hydroelectric energy makes EVs super affordable to run One of Nepal’s greatest natural assets is its hydropower. The country generates over 90% of its electricity from hydro sources, meaning it's already set up for a clean energy-powered transport system. Unlike nations reliant on fossil fuels, charging an EV in Nepal is not only environmentally friendly but also 15 times cheaper than refueling with petrol. For everyday Nepalis, this cost-saving is a game-changer.Live Events This affordability—paired with Nepal’s aggressive import tax incentives—makes electric vehicles not only greener but also the smarter economic choice. EV tax breaks give buyers a financial edge over petrol vehicles Government policy has played a central role in Nepal’s EV success. In a bold move, Nepal introduced reduced import duties on electric vehicles, slashing the tax burden to as low as 40–60%. In contrast, petrol and diesel vehicles still face tax rates between 180–300%. This policy flip has helped make EVs more accessible than ever. In fact, several popular electric models—like the Hyundai Kona Electric or Chinese-made SUVs—are now cheaper than their petrol counterparts in the Nepali market. Thanks to these incentives, EVs are no longer niche or luxury items in Nepal—they are rapidly becoming the default vehicle choice. Chinese EVs dominate Nepal’s roads with affordable and feature-rich options Chinese electric vehicle brands, especially BYD and Neta, have captured an estimated 70–80% of Nepal’s EV import market. Their vehicles are praised for being affordable, reliable, and loaded with tech features that match or beat Western competitors. Smaller models like the BYD Dolphin or Tata Nexon EV (from India) have also become popular choices for city drivers, while premium SUVs like the BYD Atto 3 are rising among families looking for larger and longer-range options. The flood of high-quality but budget-friendly Chinese EVs has been a crucial factor in Nepal’s record-breaking EV growth. Nepal’s growing EV charging network powers mass adoption Another reason for Nepal’s EV boom is the development of its national charging infrastructure. As of mid-2025, the government and private companies have installed over 60 public charging stations, with many more being added across Kathmandu Valley and highway routes. Charging at home is also becoming popular, especially as the cost of residential EV charging is significantly lower than public petrol stations. While rural areas still face some access challenges, the growing number of chargers across the country has given drivers confidence that switching to electric won’t limit their mobility. EV sales hit record highs with over 10,000 new units imported in a year In just the first 10 months of fiscal 2024–25, Nepal imported close to 10,000 electric vehicles—a massive jump from previous years. This surge is not just good news for sustainability; it’s also great for the economy. By importing EVs instead of petrol vehicles, Nepal is saving billions in fuel import costs while also reducing air pollution in congested cities like Kathmandu. More EVs also mean higher revenue from customs duties, as electric car sales continue to rise and replace fossil-fuel vehicles on the roads. National targets set the pace for a fully electric future Nepal is not stopping at just 76%. The government has outlined bold EV targets in its updated climate action plan (NDC 3.0): 25% of all new vehicles to be electric by 2025 (already surpassed) 90% of private cars and 60% of public vehicles electric by 2030 95% private and 90% public vehicle electrification by 2035 These targets align with Nepal’s goal of becoming a net-zero country by 2045, and EV transformation is a big piece of that puzzle. Challenges ahead: Policy changes and rural EV access need attention Despite the progress, Nepal’s EV revolution isn’t without roadblocks. In 2025, the government increased custom and excise duties on EVs, raising costs for buyers and prompting concern among dealers and consumers. At the same time, changes to financing rules—cutting loan-to-value ratios from 80% to 60%—have made it harder for some buyers to afford new EVs. In addition, charging infrastructure is still sparse in rural areas, and electric buses and trucks haven’t scaled fast enough to clean up public transport or commercial fleets. Without stable policy support and further infrastructure investment, the EV boom could slow in the years ahead. Electric buses and public transport are the next big focus While private EV ownership has surged, public transportation in Nepal is still catching up. Only a small number of electric buses operate in Kathmandu, mostly through the Sajha Yatayat cooperative, which runs around 40 EV buses. Experts say Nepal needs at least 800 electric buses to make a serious dent in pollution and congestion across major cities. However, limited subsidies and high upfront costs remain barriers. Scaling public EVs—especially in mass transit—will be essential for making Nepal’s EV shift both inclusive and equitable. No EV battery recycling or safety regulations yet in place Nepal’s EV journey is happening at an impressive pace, but its ecosystem is still incomplete. There is no national battery recycling system, posing future environmental risks once older EVs retire. Vehicle safety standards and quality checks for imported EVs also remain weak or inconsistent, raising concerns about long-term durability and serviceability. For Nepal to become a mature EV market, it will need to strengthen after-sales service networks, recycling policies, and technical standards across the board. Nepal’s EV journey is a model for developing countries Despite its economic challenges and mountainous terrain, Nepal is proving that EV adoption is possible—and scalable—even in developing nations. By focusing on clean energy, smart incentives, and affordable imports, Nepal is reducing fuel dependency, slashing emissions, and giving its citizens access to cleaner, cheaper transportation. If current momentum continues—with stable policies, better infrastructure, and attention to public transit—Nepal could become one of the world’s first countries to fully electrify its vehicle fleet by the 2030s.FAQs: Q1. Why are electric vehicle sales rising fast in Nepal? Because Nepal offers low EV import taxes, hydro-powered electricity, and affordable Chinese EVs. Q2. How much of Nepal's new car market is now electric? About 76% of new cars sold in Nepal are electric in 2025.(You can now subscribe to our Economic Times WhatsApp channel) Read More News onNepal leads global electric vehicle transformationnepal electric vehicle marketev sales in nepalchinese evs in nepalnepal ev boom 2025hydroelectric power electric carsNepal electric vehicle market share boom (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onNepal leads global electric vehicle transformationnepal electric vehicle marketev sales in nepalchinese evs in nepalnepal ev boom 2025hydroelectric power electric carsNepal electric vehicle market share boom(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) 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