KATHMANDU: Nepal’s car market, which saw a major boom in 2021 amid the COVID-19 pandemic, faced a steep decline in 2022. However, the market has since been gradually improving.
In 2021, a total of 17,188 cars were imported. The share of electric vehicles (EVs) that year was very low, with petrol cars dominating the market. In contrast, only 7,436 units were imported in 2022, the lowest figure in the past decade.
The market began to recover in 2023, supported by the rapid growth of the electric car segment. That year, 10,116 cars were imported, showing a significant improvement compared to the previous year.
Car sales continued to gain momentum in 2024, reaching 13,760 units, mainly driven by record sales of electric cars. Around a dozen and a half new Chinese car brands entered the Nepali market that year.
According to customs data, 12,950 cars had been imported as of October 15, 2025. With nearly 13,000 cars brought in within nine and a half months, at least 1,500 more units are expected in the remaining two and a half months, bringing the year-end total to around 15,000 cars.
The highest car imports in the last five years were recorded in 2021. Although the market saw a sharp fall in 2022, it has been gradually recovering. However, with the Gen Z movement in September and a subsequent slowdown in sales, experts say it remains uncertain how the market will perform in 2026.
At present, 56 car brands are available in Nepal, with Chinese new energy brands holding the largest market share. These Chinese brands are currently engaged in an intense price war, keeping competition in the market highly active.
