Nepal’s Silent EV Revolution: A Small Country Doing Big Things in Electric Vehicles

 

When we think about electric vehicles (EVs), we usually talk about big countries like China, Norway, or the USA. But in the middle of the Himalayas, a quiet and surprising change is happening.

Nepal, a small and developing country, is quickly becoming a leader in electric vehicles. Without much noise, it is showing the world how smart policies, clean energy, and local support can create a big movement.

This is the story of Nepal’s silent EV revolution — a change that started recently but is already showing powerful results.

🌍 How COVID-19 Helped Start the EV Boom

During the COVID-19 lockdown, Nepal’s government made an important decision. They reduced the high taxes on electric vehicles. Before this, EVs were very expensive due to more than 100% tax. But in 2020, small EVs were given a tax rate of just 10%–20%.

At the same time, Nepal was producing a lot of hydropower (electricity from water). So charging EVs became cheaper and easier.

And then the change began.

In 2020, Nepal only imported 236 electric cars. But in 2024, the number jumped to more than 16,000 EVs, making up 73% of all new car sales. Today, most new cars sold in Nepal are electric. That’s faster progress than many rich countries!

🛵 Not Just Cars — Bikes, Rickshaws, Buses Too!

Nepal’s EV revolution is not just about electric cars. It’s happening in all types of vehicles:

• 🛵 Electric scooters and bikes are everywhere now, especially in cities like Kathmandu and Pokhara.

• 🛺 Electric rickshaws (tempos) are common in towns and small cities. Nepal already has over 55,000 of them!

• 🚌 Electric buses are now being used for public transport. The popular Sajha Yatayat runs 40 electric buses in Kathmandu.

Even in hilly areas, people are using small electric minibuses. This shows that the EV revolution is not just for the rich or for city people. It’s for everyone.

⚡ Why It’s Working in Nepal

Here’s why Nepal’s EV revolution is happening so fast:

1. Low electricity cost – Almost all of Nepal’s electricity comes from hydropower. So it’s cheap and clean.

2. Smart government policies – Tax reductions and easy loans for EVs have helped a lot.

3. High fuel prices – Petrol and diesel are expensive, so people are choosing EVs to save money.

4. Support from banks – Many banks in Nepal are giving good loans for EV purchases.

5. Chinese EV imports – Affordable electric vehicles from Chinese companies like BYD and Great Wall have entered the market.

🌱 Good for the Environment and Health

Kathmandu, like Delhi, has a serious air pollution problem. But with more EVs on the road, air quality is improving. Experts say switching to electric vehicles can add 2.6 years to average life expectancy in Kathmandu.

Also, EVs are helping reduce fuel imports, which saves money for the country. Electric vehicles also need less maintenance, so users save more in the long run.

🌍 Compared to the World

Nepal is now selling more EVs as a percentage of total cars than most countries in the world.

• In 2024, about 70–76% of all new cars sold in Nepal were electric.

• Globally, the average is around 20%.

• In India, the number is much lower.

• Even in China, where EV growth is strong, Nepal’s speed is surprising.

For a developing country with a small economy, Nepal’s EV story is amazing.

🚧 Challenges Still Exist

Of course, Nepal still has problems:

• Charging stations are not available everywhere, especially in rural areas.

• Policy changes, like lower bank loan limits for EVs, can slow growth.

• Nepal depends on imported vehicles, which can be risky if prices go up.

But even with these issues, Nepal’s progress is inspiring.

🎯 The Future of EVs in Nepal

Nepal’s government has set big goals:

• By 2030, they want 90% of new private vehicles to be electric.

• They also aim to make 60% of public transport electric.

If current trends continue, Nepal could become a global example of how even small countries can lead the green future.

💡 Final Thoughts

Nepal’s EV journey proves that you don’t need to be rich to be smart. With good policy, clean energy, and public support, even a small country can make a big impact.

This is more than just a trend—it’s a revolution. And it’s happening quietly, but powerfully, across the hills, valleys, and cities of Nepal.

📚 References

1. Climate Action Tracker. (2022). Nepal Country Report: Status of Climate Policies. Retrieved from https://climateactiontracker.org

2. ElectricDrives. (2025, June). Nepal is now selling more electric cars than petrol ones. Retrieved from https://electricdrives.tv

3. Electrek. (2025, May). Nepal quietly becomes one of the world’s fastest growing EV markets. Retrieved from https://electrek.co

4. International Transport Forum. (2023). Electric Mobility in Developing Countries. OECD Publishing. Retrieved from https://www.itf-oecd.org

5. IJEELP. (2024). Projected growth of EVs in Nepal: Environmental and Economic Impact Analysis. International Journal of Energy & Environmental Law and Policy, 9(2), 45–58.

6. Kathmandu Post. (2025, July). Nepal’s electric vehicle imports hit record high in FY 2024/25. Retrieved from https://kathmandupost.com

7. Ministry of Finance, Nepal. (2022–2025). Economic Survey Reports (FY 2078/79 – 2081/82). Retrieved from https://mof.gov.np

8. Nepal Electricity Authority. (2025). EV Charging Infrastructure Development Report. Retrieved from https://nea.org.np

9. Nepali Times. (2024, March). Battery-powered boom: How EVs are reshaping transport in Nepal. Retrieved from https://nepalitimes.com

10. Sajha Yatayat. (2025). Electric Bus Fleet Expansion & Operational Data. Retrieved from https://sajhayatayat.com.np

11. The Guardian. (2025, July). Nepal’s electric car boom is cleaning its air – and saving lives. Retrieved from https://theguardian.com

12. Trading Economics. (2024). Nepal Fuel Import Bill (2019–2024). Retrieved from https://tradingeconomics.com/nepal/imports/fuel

13. World Bank. (2023). Nepal Energy Transition Report: Aligning Hydropower with Electric Mobility. Retrieved from https://worldbank.org

14. World Health Organization. (2021). Air pollution and health impacts from transport: Nepal profile. Retrieved from https://who.int