Nepal’s electric mobility: Progressing toward a cleaner future
With its wealth of natural beauty and hydropower resources, Nepal is at a turning point in determining its future in terms of both transportation and the environment. The need for sustainable alternatives has grown urgently due to the increasing effects of climate change, growing air pollution, and an increasing reliance on imported fossil fuels. Electric mobility, or ‘e-mobility’, is one of the solutions that is gaining traction and is a game-changer. With Electric Vehicles (EVs) now widely acknowledged as a global force for lowering emissions and changing urban life, Nepal has a strong chance to move toward a future that is cleaner, greener, and more economically resilient.
The nation’s trade deficit is largely caused by Nepal’s current transportation system, which is largely reliant on imported fossil fuels. Every year, the nation spends over $1.5bn on petroleum imports, a financial burden that is not sustainable from an environmental or economic standpoint. This reliance also makes Nepal vulnerable to changes in the price of oil globally and makes a substantial contribution to greenhouse gas emissions. Kathmandu has recently been ranked as the world's most polluted city by Swiss firm ‘IQAir’, with particulate matter (PM2.5) levels reaching hazardous levels. Vehicle emissions are the main cause of this pollution since they emit dangerous substances like carbon monoxide, nitrogen oxides, and fine particulate matter (PM2.5), all of which are extremely dangerous to human health.
For Nepal, electric vehicles are especially sensible because of a number of built-in benefits. First, hydroelectric power accounts for more than 90 percent of the nation’s electricity production. Much of this clean energy is wasted during off-peak hours. By helping to absorb this excess power, particularly during nighttime charging, EVs can improve the sustainability and efficiency of the country’s electrical grid. Second, switching to electric vehicles from fossil fuel-powered ones can significantly lower the nation’s fuel import bill, saving millions of dollars in foreign exchange. The change may also boost regional businesses engaged in EV production, maintenance, and battery recycling, which would lead to job creation and economic expansion.
From a health and environmental perspective, the benefits of electric vehicles are clear. EVs have no tailpipe emissions, which would result in cleaner air, particularly within urban areas. Reduced exposure to air pollutants would translate to less respiratory disease and associated healthcare costs. Besides, Nepal has pledged under the Paris Agreement to reduce emissions and has set up a national target of achieving net zero emissions by 2045. A robust switch to electric mobility would take some way towards fulfilling these aspirations. On an individual level, EVs are also financially advantageous to consumers. With lower operating costs since electricity is cheaper than diesel or petrol and minimal maintenance needs, EVs are an economic choice in the long run.
In order to remain cognizant of these advantages, the government has introduced different policies that can provide a boost to electric mobility. These include reducing customs and excise duties on EVs, offering tax concessions to private and commercial users of EVs, and encouraging the usage of electric buses and three-wheelers for public transport. The government’s Nationally Determined Contributions (NDC) include the following detailed targets: 25 percent of sales of private cars and 20 percent of public transport fleets to be electric by 2025 and 90 percent by 2030. To power these ambitions, charging infrastructure is being constructed in inner city areas. The recent Budget for fiscal year 2025/26 has reinforced confidence in the long-term adoption of electric vehicles (EVs), setting a target to replace imports of internal combustion engine (ICE) vehicles with EVs by 2031. To support this transition, Finance Minister Bishnu Prasad Paudel announced that the existing tax structure for electric vehicles will remain unchanged.
Encouragingly, the EV industry in Nepal is gradually picking up. Metro cities, especially Kathmandu and Pokhara, have seen increasing EV adoption. International brands like Hyundai, Skywell, Tata, BYD, MG, Neta etc. have introduced models specifically tailored to fit Nepali roads and preferences. Electric two-wheelers and three-wheelers are also picking up with ease of affordability and usage for short distances. Public transport is also changing; electric buses have begun operating in cities like Kathmandu and Pokhara,
In spite of the encouraging momentum, there are a number of challenges as well. One of the biggest challenges is the lack of charging infrastructure. While there are some fast-charging stations in Kathmandu and in some of the main routes, the network is not enough to facilitate large-scale EV adoption. Convenient and reliable charging points are key to promoting long-distance travel and reducing range anxiety for users. Another challenge is the high initial cost of EVs. In spite of tax rebates, the initial purchase price remains unaffordable to most consumers.
Public skepticism and unfamiliarity also slow adoption, especially in rural and mountainous areas where skepticism about EV capabilities remains. There are also some concerns regarding battery degradation and the absence of recycling or disposal systems for lithium-ion batteries on both environmental and logistical fronts.
To overcome these barriers, a multi-faceted approach is required that incorporates a broad-based effort. Expanding the EV charging network with public-private partnerships is the priority area. Offering incentives to businesses to install the same in shopping malls, hotels, and other public places can rapidly accelerate infrastructure. Charging public transport buses, microbuses, and three-wheelers would halve emissions. This can be accelerated through subsidies, low-interest financing, and public-private models with government and private players. Economic means such as subsidies to purchase a car, exchange schemes for old cars, and soft loans from banks and co-ops would also convince more people to switch.
Another crucial area is skill development. To maintain and operate electric vehicles, technicians, drivers, and mechanics need to receive training. Certification programs in EV maintenance and battery technology ought to be available at technical colleges and vocational schools. In addition to cutting costs, supporting domestic production and assembly of EVs and their parts can generate job opportunities. In order to encourage manufacturers and investors, the government can help with this by offering incentives like land grants, tax holidays, and infrastructure support.
In Nepal, there are already a few effective electric mobility examples. Pioneers in this field were the battery-powered three-wheelers known as Safa Tempos, which were first introduced in Kathmandu in the late 1990s. They demonstrated that even in low-income environments, e-mobility was possible.
Similarly, Pokhara’s electric bus initiative with the assistance of development partners has developed a model for environmentally friendly public transport. These examples affirm the viability of electric mobility and the necessity of continuous innovation and support.
The private sector and civil society have played a decisive role in pushing the e-mobility agenda forward. Importers and dealerships have not only brought in EVs suitable for Nepal’s terrain but also provided essential services such as after-sales services and battery guarantees. Environmentalists and civil society groups have played a crucial role in awareness-raising and promoting cleaner air and green transport policies.
By 2030, Nepal could emerge as a regional leader in sustainable mobility. A practical and inclusive vision would include a nationwide network of EV charging stations, the complete electrification of public transportation in major cities, and EVs accounting for at least 50 percent of all new car sales. Local manufacturing of batteries and automobiles would boost the economy and further reduce costs. Strong coordination between government agencies, active private sector involvement, and extensive public engagement and education are all necessary to realize this vision.
In total, electric mobility offers Nepal a singular opportunity to address environmental, economic, and public health challenges with one solution. Endowed with ample renewable energy and a rising public dedication to sustainability, the country is poised to embrace EVs as a signature of its development model. Yet achievement will require not just vision but action through policy, infrastructure, education, and partnerships. With proper measures, electric mobility can indeed lead Nepal to a cleaner, healthier, and richer tomorrow.
