KATHMANDU: The use of electric vehicles (EVs) in Nepal has risen sharply in recent years, driven by government incentives and tax breaks. Nepal is now considered one of the countries with the highest EV acceptance rates globally, with EVs accounting for nearly 65 percent of new private car sales.
EV microbuses are also gaining traction in public transport, although large electric buses and two-wheelers have not grown as expected.
Despite growing adoption, a recent government study has highlighted more than a dozen challenges in EV operation and management. Soon after assuming office, Minister for Physical Infrastructure and Transport, Kulman Ghising, formed a task force to recommend measures for strengthening EV promotion.
The ministry stated that addressing these gaps is essential for meeting Nepal’s target of achieving 90 percent EV share in private vehicles by 2035.
The task force, led by Joint Secretary Krishna Raj Pantha, was assigned to review policies, laws, charging infrastructure, battery management, and related issues. The report was submitted on 26, October.
According to the study, these are the 12 major challenges currently facing EV adoption in Nepal:
- Charging infrastructure: Most charging stations are concentrated in Kathmandu Valley and major cities like Pokhara, Chitwan, and Birgunj. Technical issues such as insufficient input power and improper wiring also persist. Limited coverage has made long-distance EV travel unreliable.
- Battery cost: Lead-acid batteries offer low efficiency, while lithium-ion batteries, though more efficient remain expensive. Batteries account for nearly half the cost of an EV, making purchase prices significantly higher than ICE vehicles. High upfront costs, uncertainty about long-term performance, and weak after-sales support continue to discourage buyers.
- Road infrastructure: Nepal’s road network lacks proper geometric standards, especially at the local level. High surface roughness and low ground clearance requirements pose challenges for EVs currently available in the market.
- Battery reuse and disposal: Nepal lacks clear policies for battery recycling and safe disposal. There are no dedicated facilities for handling old batteries, chemicals, motors, controllers, and other EV components.
- Skilled workforce: There is a shortage of trained technicians for EV operation and maintenance. Limited technical knowledge and lack of skill development programs hinder long-term sustainability.
- Limited private sector participation: Private investment in EVs remains low due to unpredictable government policies. Banks and insurance companies still consider EV financing risky, discouraging the private sector further.
- Lack of advanced technology and skill development: The availability of the latest technology required for electric vehicles remains limited. The absence of key EV components such as high-capacity chargers, battery recycling systems, and other advanced equipment has restricted progress in this sector. Globally, extensive research is underway in EV system development, and more affordable technologies are expected to emerge in the future. However, clear policies are needed on how to effectively utilize existing infrastructure when such technologies enter the market. Overall, Nepal still lacks concrete plans and implementation strategies to become technologically self-reliant in the EV sector.
- Dependence on imported parts: Due to the inability to manufacture electric vehicle parts domestically, the country is fully dependent on imports. This dependency, along with the high cost of imported components, has also increased vehicle maintenance expenses.
- High upfront cost and low resale value: Expensive entry prices and weak resale markets make consumers hesitant. Limited model options have also restricted healthy competition.
- Vehicle quality issues: Some manufacturers compromise on quality to match affordability, raising safety concerns. Inadequate import standards have made it difficult to regulate quality.
- Lack of trained drivers: Nepal’s driving license system is designed for ICE vehicles. Drivers are not trained to handle EV-specific technologies, increasing safety risks.
- Limited adoption of large electric vehicles: Nepal has very few electric buses and trucks, with EV adoption largely limited to two-wheelers, three-wheelers, and passenger cars. Large EVs have yet to be effectively introduced in public transport and freight movement.
