Nepal is quietly leading the world in electrifying its roads, with a remarkable 76% of new passenger vehicles and 50% of light commercial vehicles sold being electric last year. The country’s aggressive shift towards electric vehicles (EVs) can be attributed to a perfect storm of factors, including abundant hydropower, smart import tax policy, growing infrastructure, and the surge in affordable EVs from China.
Nepal’s power grid is fueled by rivers flowing from the Himalayas, making electricity clean and locally sourced. This has led to a national pivot towards hydropower, ending years of rolling blackouts caused by fossil fuels. The government’s slashing of import taxes for EVs to as low as 40% (vs. 180% for internal combustion engine vehicles) has also made electric transport more economically viable.
Chinese automakers like BYD have dominated the market, with dozens of local dealerships now competing in Nepal’s EV market. This shift has not only transformed the auto industry but also created new opportunities for everyday Nepalese, such as retired police officer Jit Bahadur Shahi, who purchased an electric minibus and expects to own it outright in four years.
Despite the momentum, challenges remain, including limited charging infrastructure and potential policy backsliding. However, the government is investing in expanding the charging network to support the growing EV fleet. The country’s public transit system is also set to undergo a transformation, with state-backed bus operator Sajha Yatayat running 41 electric buses and plans to expand.
Nepal’s EV story is unique but has similarities with other markets, making it potentially replicable. By leveraging its clean energy, embracing Chinese EV supply, and creating the right incentives, Nepal has leapfrogged most markets in EV adoption.
Source: https://electrek.co/2025/07/28/this-country-quietly-became-an-electric-haven-with-evs-now-having-76-market-shares