What’s Behind the Decline in Nepal's EV Imports?
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Synopsis
Nepal faces a dramatic drop in electric vehicle imports due to severe trade route disruptions with China. As landslides and floods wreak havoc, the country turns to alternative routes to maintain its EV supply. Will this shift in trade routes be enough to revive Nepal's electric vehicle market?
Key Takeaways
- Significant decline in EV imports due to trade route closures.
- China remains Nepal's primary supplier of electric vehicles.
- Newly opened Mustang route offers hope for recovery.
- Consumer preference has shifted towards electric vehicles.
- Protests have affected customer confidence in vehicle purchases.
Kathmandu, Sep 23 (NationPress) The importation of electric four-wheelers in Nepal has experienced a significant downturn over the last two months. This decline is primarily attributed to the closure of two critical trade routes with China, which have been severely impacted by devastating landslides and floods.
As reported by the Department of Customs, Nepal managed to import merely 486 electric four-wheelers during the initial two months of the current fiscal year 2025-26, which commenced in mid-July. This figure represents a sharp decrease compared to the 1,602 units imported in the same timeframe last year.
China, which serves as Nepal's largest supplier of EVs, has faced a considerable reduction in exports, sending only 240 vehicles during this two-month period, a stark drop from 1,125 units the previous year. India, the second-largest supplier, also witnessed a downturn, exporting 207 vehicles compared to 475 units in the same period last year.
The decline in imports aligns with the suspension of two major border crossings. The Rasuwagadhi-Kerung checkpoint has remained closed since early July due to floods that damaged the Nepal-China Friendship Bridge and other essential infrastructure on the Nepalese side. Concurrently, the Tatopani-Nyalam crossing has been obstructed over the past month by landslides, although partial clearance was reported recently.
“The primary cause of the decline in electric vehicle imports from China is the blockade of these two trade routes,” stated Samir Shrestha, Chief Marketing Officer at Cimex Inc. Pvt. Ltd, the authorized distributor of BYD cars in Nepal, during an interview with IANS. “We have initiated the use of the newly opened Mustang route since mid-September to facilitate vehicle imports.”
The Department of Customs recently confirmed the full operational status of this border point starting September 15. Nepal's central bank has also issued a notice indicating that local importers can utilize this route for acquiring goods from China through a letter of credit. “This new arrangement signifies that the third trade route between Nepal and China has officially opened for international trade,” remarked Kishor Bartuala, Information Officer at the customs department. “Previously, this route was exclusively for cross-border trade among the local populace.”
According to the customs department, over 200 electric four-wheelers have been imported from China since the opening of this border point for international trade last week.
Shrestha emphasized that the demand for Chinese EVs remains robust; however, he acknowledged that some customers have canceled their bookings due to concerns regarding vehicle damage amid recent Gen-Z protests, which have resulted in over 70 fatalities and widespread destruction.
Historically, India-made Internal Combustion Engine (ICE) vehicles have dominated Nepal’s automotive market. Nevertheless, consumer preferences have rapidly shifted towards electric vehicles, establishing a strong foothold for Chinese brands. In the last fiscal year, Nepal imported 13,578 electric four-wheelers, with 75.2% sourced from China and the remainder from India, Germany, the US, and other nations.
Point of View
The ongoing challenges in Nepal's EV import sector underscore the importance of resilient trade infrastructures. The significant reliance on a limited number of trade routes poses risks that need to be addressed promptly. As we navigate these turbulent times, collaboration between government and private sectors can pave the way for a more sustainable automotive future in Nepal.
NationPress
23/09/2025
Frequently Asked Questions
What caused the decline in electric vehicle imports in Nepal?
The decline in electric vehicle imports in Nepal is primarily due to the closure of two major trade routes with China, caused by landslides and floods.
How many electric vehicles were imported this year compared to last year?
Nepal imported 486 electric four-wheelers in the first two months of the current fiscal year, a significant drop from 1,602 units imported in the same period last year.
What measures are being taken to recover the import situation?
Nepal has started using the newly opened Mustang route for vehicle imports, which has been operational since September 15.
Which countries supply electric vehicles to Nepal?
China is Nepal's largest supplier of electric vehicles, followed by India, Germany, and the US.
What impact have recent protests had on EV sales?
Recent Gen-Z protests have caused concerns over vehicle damage, leading some customers to cancel their bookings for electric vehicles.
