KATHMANDU: With Chinese electric vehicles rapidly gaining dominance in Nepal, representatives from the Automobile Association of India visited Nepal during the NADA Auto Show 2024. Their visit was not just limited to the Auto Show; they held important discussions with the government officials in Nepal.
The time of the visit could not have been better, as Chinese EV brands have been expanding their foothold in Nepal since 2023, while EV production in India was making relatively slow progress amid high EV adoption in Nepal.
Currently, only five major automakers—Tata, Mahindra, MG, Citroën, and more recently Hyundai—manufacture EVs in India. Among these, Tata holds a strong 30% share of Nepal’s EV import market. MG’s Comet EV is the only model produced in India, while imports from Mahindra and Citroën are not significant. Hyundai has just started delivering its Creta EV. Apart from these, no other brands have yet begun EV production in India.
In this context, it is too early to compare the superiority of Indian versus Chinese products. While companies like Suzuki and Toyota are gearing up for EV production in India, only Tata and MG have achieved any level of scale so far.
Feature-to-feature comparison
Chinese EVs now commonly come equipped with Advanced Driver Assistance Systems (ADAS) and other high-end features. Features like ABS, EBD, disc brakes on all four wheels, 360-degree cameras, and premium interiors are available in almost all cars priced from Rs 1.8 million to above Rs 10 million.
Indian models are also stepping up. Take the Tata Punch EV, for instance. The compact SUV offers a sunroof, wireless phone charging, a 360-degree camera, disc brakes, a smart dashboard and advanced safety features. It matches Chinese models in terms of design and finish while offering practical utility suited for Nepali roads. Tata’s 30% market share is a reflection of its tailored approach to Nepal’s road conditions, particularly with good ground clearance.
Likewise, Hyundai’s newly launched Creta EV includes all modern features and high ground clearance. Its strong brand recognition, thanks to the legacy of its ICE version, which is considered Nepal’s most popular SUV, gives it a competitive edge. However, its relatively smaller battery size compared to Chinese EVs leaves questions about its range performance. We will have to wait and see how it performs on Nepali roads.
Strengths of chinese EVs
China leads the global EV market, accounting for nearly 70% of high-voltage battery production in the world. South Korean companies come second, but China’s scale has made its battery prices the lowest globally.
In contrast, Indian manufacturers often import batteries from China, which raises their overall production costs.
Additionally, China supports manufacturers through production-based subsidies, while India offers incentives to end consumers. As a result, Indian EVs are costlier to produce. Moreover, China has made great progress in software development, electric motor production, and battery management systems. Indian manufacturers lag significantly behind in these key areas.
Brand familiarity gives indian EVs edge
Despite technological shortcomings, Indian EVs enjoy some advantages in the Nepali market. Thanks to the open border, Nepali customers feel more confident purchasing Indian cars, knowing they can access service and spare parts more easily—if not in Nepal, then across the border. This assurance is lacking with many Chinese brands.
While Chinese EVs have gained traction, consumers are skeptical largely due to past experiences with unreliable service and limited spare parts for Chinese vehicles. Nevertheless, Chinese brands are overcoming these doubts and now enjoy strong sales in Nepal.
India-made cars also benefit from design suited to Nepali roads. Ground clearance is rarely an issue in Indian cars, as road conditions in India and Nepal are more or less the same. This suggests that Indian EVs undergo R&D with South Asian terrain in mind. However, they face stiff competition in pricing from their more affordable and feature-rich Chinese rivals.
