Nepal Has Become a Global Leader in EV Adoption

Electric vehicles in the Himalayan nation now account for seven out of ten new car purchases.

Charging station outside a government building in Kathmandu

In 2024, over 70 percent of new four-wheeled passenger vehicles sold in Nepal were battery-powered electric vehicles. After Norway, where nine out of 10 new vehicles were EVs last year, this achievement places Nepal at the top of the rankings in the pursuit of cleaner transportation. Apart from the environmental and health benefits, gas cars no longer makes financial sense for Nepali buyers.

Nepal’s capital, Kathmandu, ranks among the world’s most polluted cities. Fine particle pollution in the city is often measured 10 to 20 times higher than World Health Organization (WHO) safety guidelines, and transport accounts for about 25 percent of this dangerous air pollution thanks to 1.75 million vehicles clogging city streets.

Electric vehicles provide a practical solution to this health problem. Unlike gas-powered cars, EVs produce no direct emissions and, courtesy of the country’s abundant hydroelectric power, these vehicles charge using clean, renewable energy.

The government is playing its part as import taxes on electric vehicles are lower than those on regular cars. Operating costs run significantly lower than those of gasoline vehicles. Banks offer generous financing deals specifically for electric car purchases. As a result, choosing a fossil-fuel guzzling vehicle no longer makes financial sense.

You probably will not be surprised to learn that Chinese manufacturers dominate the electric vehicle market in Nepal, according to the Nepal Economic Forum, and represent over three quarters of all electric vehicle imports.

In addition to cleaner air and lower prices, EVs provide an important additional benefit. Nepal imports all petroleum products, draining foreign currency reserves. Electric vehicles powered by domestic hydroelectricity reduce this dependence on expensive fuel imports.