Electric Vehicle Adoption in Nepal: Challenges and Opportunities

Strategic Insights -

Nepal's transportation sector relies heavily on internal combustion engine vehicles, contributing significantly to greenhouse gas emissions. However, the country has seen a significant growth in electric vehicle adoption, with increasing registrations of two/three-wheelers, cars, and buses. A recent study conducted by researchers at Tribhuvan University analyzed the current state of electric vehicles in Nepal, identifying barriers to adoption and evaluating gaps in existing policies.

Key Takeaways:

  • The total registered vehicles in Nepal reached 5,526,192 by mid-March 2024, with a 10% compounded annual growth rate (CAGR) from 2020.
  • Motorcycles dominate the market, accounting for 81% of registered vehicles.
  • Electric vehicle imports have increased by more than 75,000 units since 2020, demonstrating a 70% CAGR, with forecasts projecting 205,562 EVs by 2045 at a 14% CAGR.
  • Charging infrastructure has expanded to over 600 stations by mid-March 2025, growing at 20% annually.
  • Inconsistent fiscal policies, such as fluctuating custom and excise duties, reduced financing limits for EVs, and increased financing limits for conventional vehicles, hinder progress.
  • The study recommends an effective action plan to harmonize fiscal policies, expand infrastructure, and enhance financial accessibility for EVs.
  • Ajay Kumar Jha, Department of Mechanical and Aerospace Engineering, Pulchowk Campus, Institute of Engineering, Tribhuvan University, Nepal & Center for Pollution Studies, Institute of Engineering, Tribhuvan University, Nepal, and his team conducted the study.

Statistics:

  • Total registered vehicles in Nepal: 5,526,192 (mid-March 2024)
  • CAGR of registered vehicles: 10% (2020-2024)
  • Electric vehicle imports in Nepal: over 75,000 units (2020-2024)
  • CAGR of electric vehicle imports: 70% (2020-2024)
  • Forecasted electric vehicles in Nepal by 2045: 205,562
  • CAGR of forecasted electric vehicles: 14% (2040-2045)
  • Charging infrastructure in Nepal: over 600 stations (mid-March 2025)
  • Annual growth rate of charging infrastructure: 20%

Sources:

  • Research: "Current State and Energy Policy Roadmap for Sustainable Adoption of Electric Vehicles in Nepal" (International Journal of Energy Economics and Policy, 2025,15(4))
  • Authors: Ajay Kumar Jha, Hari Bahadur Darlami, Nawaraj Bhattrai, Subir Karn, Ganesh Neupane
  • Publisher: EconJournals
  • DOI: 10.32479/ijeep.18634