-- Kathmandu, Nepal – August 17, 2025 – Nepal is accelerating toward a clean transportation future, with electric vehicles (EVs) now accounting for more than 70 percent of new passenger vehicle imports. According to a new report by The Kirib, this remarkable transition positions Nepal among the fastest adopters of EV technology worldwide.
In the fiscal year 2024/25 alone, Nepal imported more than 44,000 EVs, spanning motorcycles, three-wheelers, buses, and private passenger cars. This surge reflects a combination of favorable government policies, the growth of hydropower capacity, and a wave of affordable EV models entering the market from China.
Policy and Market Forces Driving Growth
Nepal’s rapid shift toward electric mobility has been enabled by policy measures that reduce import duties for EVs compared to internal combustion engine vehicles. By leveraging abundant domestic hydropower resources, the country has also been able to power EVs with renewable energy, reinforcing both environmental and economic benefits.
Lower operational costs, tax exemptions, and competitive charging tariffs—starting at just NPR 6/kWh during off-peak hours—have further boosted adoption rates. The Nepal Electricity Authority has expanded the country’s public charging network to approximately 750 stations, with additional installations underway to meet growing demand.
“Nepal’s electric mobility shift is more than a trend—it’s a national transformation,” said Yukesh Chaudhary, founder of Niriv. “The combination of smart policy, renewable energy, and market accessibility shows that even developing nations can lead the way in sustainable transport. If we maintain this momentum, Nepal has a real chance to become a global example of clean mobility done right.”
Progress and Remaining Challenges
Despite rapid growth in private EV ownership, the report notes that electrification of public transport remains a significant challenge. Fewer than 50 electric buses currently operate in Kathmandu, far below the estimated requirement of 800 to reduce congestion and improve air quality.
Nonetheless, momentum is building outside of the capital. Smaller municipalities, including Belbari in eastern Nepal, have begun adding EVs to their fleets. The recent purchase of an electric city bus in Belbari demonstrates how electrification is extending beyond major urban centers into regional hubs.
Environmental and Economic Impacts
For cities like Kathmandu, which rank among the world’s most polluted in terms of PM2.5 levels, EV adoption provides direct health and environmental benefits by reducing vehicle emissions. By substituting petroleum imports with domestic renewable power, Nepal is also easing its longstanding trade deficit.
The Kirib’s report highlights that Nepal has already exceeded its 2025 target for private EV sales. National goals include achieving 90 percent electrification of private passenger vehicles and 70 percent of public transport by 2030. To meet these ambitious targets, the report stresses the need for continued infrastructure investment, robust battery recycling programs, and the development of local technical expertise in EV maintenance and repair.
Nepal as a Global Case Study
The findings from The Kirib position Nepal as a case study in how policy, renewable energy, and market accessibility can combine to drive large-scale sustainable change. Few countries, particularly in the developing world, have been able to shift such a significant share of their transportation sector to electric in such a short time.
If the current trajectory continues, Nepal could become one of the first nations to transition the majority of its vehicle fleet to electric within the next decade, setting a precedent for clean transportation in Asia and beyond.
About The Kirib
The Kirib is a research and analysis platform focused on providing in-depth insights into global trends, policy, and sustainability. By producing data-driven publications, The Kirib helps businesses, policymakers, and organizations understand emerging issues across energy, environment, and technology.
For more information, visit: https://www.kirib.com/
About Us: The Kirib is a research and analysis platform focused on providing in-depth insights into global trends, policy, and sustainability.
Contact Info:
Name: Yukesh Chaudha
Email: Send Email
Organization: The Kirib
Website: https://www.kirib.com/
Release ID: 89167829
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