KATHMANDU: European car brands that once had a strong presence in Nepal’s mass market are now struggling to survive. Their market share, which remained strong until 2017–18, has sharply declined with the rise of Chinese cars.
Brands like BMW, Volkswagen, Peugeot, and Skoda are still available in Nepal, but none of them offer entry-level models. Most of their cars are larger and more expensive. Although Renault and Citroen have smaller, affordable models, they have failed to compete with Indian and Korean brands. As a result, their imports have nearly come to a halt.
European cars priced between Rs 5 million and Rs 70 million are facing tough competition from Indian brands such as Tata, Mahindra, and Maruti Suzuki, as well as Korean makers Hyundai and Kia. The growing popularity of Chinese electric cars has made the situation even more challenging for European brands.
Chinese automakers are offering modern design, advanced features, and premium comfort at much lower prices. Their EVs also benefit from the government’s tax incentives, making them far cheaper than fuel-powered European cars.
Because of this shift, even dealers that once focused on European brands are now turning to Chinese EVs.
MAW Group, the official distributor of Skoda, is now focusing more on importing and selling Chinese electric vehicles, though it still brings a few Skoda models from India and Europe.
Advance Automobiles, under the Vishal Group, which sells Renault, is also shifting its focus to EVs and plans to introduce VinFast electric cars soon.
Shangrila Motors, which represents Citroen and Peugeot, has started selling EVs from China’s Leapmotor, backed by the Stellantis Group.
Similarly, the Vishal Group, which distributes Volkswagen, is now prioritizing Chinese electric vans and taxis for the Nepali market.
With the market moving rapidly toward affordable and feature-rich EVs, European car brands are finding it increasingly difficult to maintain their foothold in Nepal.
