Plug-in electric vehicles in Nepal

Plug-in electric vehicles in Nepal describe the development, policy framework, and adoption of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) in the Federal Democratic Republic of Nepal. Since the early 2020s, Nepal has experienced one of the fastest rates of electric-vehicle (EV) adoption in South Asia, driven by favorable fiscal policies, growing consumer demand, and abundant domestic hydropower generation.

Overview

Nepal’s EV market expanded rapidly between 2021 and 2025. The share of electric vehicles among newly imported passenger cars rose sharply, making Nepal one of the regional leaders in EV penetration. Growth has been strongest in small and mid-size passenger EVs and electric three-wheelers (e-tempos), alongside increasing deployment of charging infrastructure across major cities and highways.

Despite progress, challenges persist, including limited charging coverage in rural and mountainous regions, seasonal variation in hydropower output, and underdeveloped after-sales and battery-recycling ecosystems.

Charging station in government office, Kathmandu.

History

Electric mobility in Nepal first gained traction in the late 2010s with the importation of small three-wheel electric tempos and compact four-wheel models. After 2020, government incentives and the global fall in EV battery prices triggered a surge in imports. The Nepal Electricity Authority (NEA) began pilot projects for public charging stations, while the government revised customs and excise structures to favor EVs.^[1]

Trolley bus era (1975–2008)

The Kathmandu–Bhaktapur trolley bus service began operations in 1975, established with technical assistance and vehicles from the People’s Republic of China. The service operated over a route connecting Kathmandu and Bhaktapur, using overhead electric wires and a fleet of trolley buses. Initially praised for its quiet, zero-emission operation and affordability, the system faced progressive difficulties including maintenance problems, parts shortages, intermittent electricity supply, and institutional challenges. Operations were suspended intermittently, briefly restarted, and the system ceased permanently in 2008.

Introduction of Safa Tempo (1990s–2000s)

In the early 1990s, battery-powered three-wheeler vehicles known locally as Safa Tempos (\"clean tempos\") were introduced to address urban air pollution in the Kathmandu Valley. Supported by local NGOs and international development partners, Safa Tempos used lead-acid battery technology and operated on short urban routes. Following regulatory actions against diesel-powered tempos (notably a ban on certain diesel three-wheelers in Kathmandu in 1999), Safa Tempos expanded as an important low-emission option for last-mile public transport and became associated with social programmes, including income opportunities for women drivers. 0

Transition to modern electric mobility (2016–present)

2016–2019 — Early e-tempo introduction and pilot imports

From 2016 onward, Nepal began to diversify its electric-transport ecosystem with pilot imports of small four-wheel electric cars and the introduction of modern electric tempos. These early imports, mostly from East Asian manufacturers, marked a technological shift from primarily locally adapted three-wheelers to complete four-wheel EV models. The period also saw initial private-sector interest from dealers and early adopters.

2020–2022 — Fiscal incentives and infrastructure planning

During 2020–2022, the Government of Nepal introduced and expanded fiscal incentives to promote electric vehicles, including reduced customs duties and tax measures aimed at lowering purchase prices for EVs. National and local planning bodies, alongside the Nepal Electricity Authority (NEA) and private firms, began developing public charging infrastructure strategies and pilot charging stations in major urban centres and along highways. 1

2023–2024 — Rapid market expansion

In 2023–2024, Nepal experienced rapid growth in EV registrations and market activity. Reported figures indicate an increase in registered four-wheel electric vehicles from approximately 4,050 to 11,701 over a one-year period. 2 Major automakers such as Chinese brands and Indian/other imports increased market presence—all supported by imports data and customs records. 3 Finance and loan-program changes also affected the market. 4

2024–2025 — Charging network growth and policy continuity

By 2024–2025, the number of public and private charging points in Nepal reached several hundred (e.g., 750+ charging stations). 5 Fiscal incentives were extended in national budgeting measures to sustain EV affordability, while early-stage local assembly and charging-service businesses began to appear. 6

Market overview

Imports and registration

The importation of EVs increased exponentially in the early 2020s:

• FY 2021–22: ~1,700 four-wheel EVs imported.^[2]
• FY 2022–23: ~4,050 units, doubling previous levels.^[3]
• FY 2023–24: 11,701 four-wheel EVs, up ~189% year-on-year.^[4]
• FY 2024–25: estimates vary between 13,000 and 44,000 units, depending on classification methods.^[5]

These totals include private passenger cars, commercial vans, and electric three-wheelers.

Market segments

• Two-wheelers: Electric scooters and motorcycles are increasingly used for urban commuting.
• Three-wheelers (e-tempos): Common for last-mile passenger transport in cities such as Kathmandu, Lalitpur, and Biratnagar.
• Four-wheelers: The majority of imported EVs are compact and mid-range BEVs under 100 kW.
• Commercial vehicles and buses: Pilot projects for electric buses and minibuses have been initiated in major urban areas including Kathmandu and Pokhara.^[6]

Source countries and suppliers

Most EVs are imported from China, followed by India and South Korea. Chinese brands dominate due to competitive pricing and wide model availability.^[7]

Policy and regulation

National targets

Nepal aims that by 2030, 90% of private passenger vehicle sales and 60% of public transport vehicle sales will be electric.^[8] These goals align with Nepal’s Nationally Determined Contribution (NDC) targets under the Paris Agreement.

Fiscal incentives

Electric vehicles benefit from sharply reduced import duties—typically around 10% compared with up to 238% for ICE vehicles. Additional concessions include lower excise taxes, reduced registration fees, and VAT exemptions for charging equipment.^[9]

Financing

Commercial banks offer auto loans for EVs, though loan-to-value ratios have fluctuated with central bank directives, affecting affordability and adoption trends.^[10]

Charging infrastructure

The number of charging stations has grown from fewer than 50 in 2020 to approximately 1,250–1,500 nationwide by mid-2025.^[11] Both NEA and private operators maintain AC and DC fast chargers (40 kW–150 kW) along highways and in major urban centers.

Public charging tariffs are generally set between NPR 6–11 per kWh, depending on the time of day. Private fast-charging operators may apply per-session pricing.^[12]

Coverage remains limited outside major corridors such as Kathmandu–Pokhara and the East–West Highway, highlighting ongoing infrastructure disparities.^[13]

Energy system and grid integration

Nepal’s electricity mix is over 90% hydroelectric, making EV operation largely renewable. However, dry-season hydropower shortages occasionally constrain supply. Smart-charging systems, energy storage, and time-of-use tariffs are being studied to manage seasonal variation and prevent grid congestion.^[8]

Local industry and service ecosystem

While domestic EV manufacturing is minimal, local businesses have begun battery-repair, retrofitting, and component-supply operations. The government has expressed interest in encouraging assembly-based industry through investment incentives, though large-scale production has yet to materialize.^[5]

Battery recycling, warranty management, and certified service infrastructure are underdeveloped; sustainable disposal and second-life use policies are under review.^[11]

Public transport electrification

Electric buses, microbuses, and taxis are being introduced across municipalities. Bagmati Province mandates that all new taxis be electric from 2024 onward.^[6] Pilot routes operate in Kathmandu, Lalitpur, Pokhara, and Nepalgunj, but long-distance and heavy-duty electrification remain limited by range and cost.

Environmental and economic impact

EV adoption reduces petroleum imports and local air pollution in urban centers. Analysts estimate annual fuel import savings of several billion Nepali rupees as electrification expands. Lifecycle emissions are comparatively low given Nepal’s clean electricity mix.^[4]

Challenges

• Infrastructure coverage: Many rural areas lack reliable public charging.
• Seasonal generation: Hydropower seasonality requires demand-side balancing.
• Affordability: High upfront costs and loan limitations restrict access.
• After-sales ecosystem: Maintenance and battery-recycling networks remain limited.
• Policy consistency: Frequent changes to tax and financing rules create uncertainty.
• Data quality: EV registration data differ among government and industry sources.

Outlook

If current growth trends continue, Nepal could surpass 90% EV share in new passenger vehicle sales before 2030. Sustained policy support, grid modernization, and expansion of reliable charging infrastructure will be key to achieving deep transport electrification.

Timeline

• 1975: Launch of Kathmandu-Bhaktapur trolley bus service.

• 1990s: Introduction of Safa Tempo electric three-wheelers in Kathmandu.

• 1999: Regulatory actions against certain diesel tempos accelerate adoption of electric three-wheelers.

• 2008: Permanent closure of the trolley bus system.

• 2016-2019: Early introduction of e-tempos and pilot imports of four-wheel EVs.

• 2020-2022: Implementation of fiscal incentives and charging-infrastructure planning.

• 2023-2024: Rapid market expansion - four-wheel EV registrations rise (approx. 4,050 → 11,701).

• 2024-2025: Charging stations exceed 1,200; fiscal incentives extended.

See also

• Electric vehicles in India
• Transport in Nepal
• Renewable energy in Nepal
• Hydroelectricity in Nepal
• Sustainable transport