India struggles as China dominates.

In the fiscal years 2019-2020 and 2024-25, Nepal’s imports of four-wheeler electric vehicles (EVs) experienced a significant increase. While the initial figure was only 1 unit, it rose to 13,578 units, representing over 70% of the country’s total imports. This remarkable growth has surpassed the inward shipments of cars powered by internal combustion engines (ICEs) in recent years.

This rapid transition of Nepal into EVs is particularly noteworthy for a lower-middle-income country, as the global average of battery-powered mobility remains around 20%. However, this swift shift has enabled China to swiftly displace India as the dominant player in Nepal’s automobile market.

In the fiscal year 2017-18, Nepal imported 19,895 units of four-wheelers, encompassing cars, passenger buses, and minibuses. Notably, 18,681 of these units (93.8%) originated from India, while China’s share amounted to a mere 45 units (0.23%).

However, a significant shift occurred in the fiscal year 2022-23. In that year, Nepal imported 19,257 four-wheeler units, with China accounting for 53% of the imports and India contributing approximately 44%.