KATHMANDU: The government has identified 14 major opportunities from the growing use of electric vehicles in Nepal. The opportunities are mentioned in a recently published study report prepared by a government task force.
Nepal’s EV market has grown rapidly in recent years. According to 2025 data, Nepal ranked second globally in EV penetration. EVs accounted for 73 percent of total new car sales in the country.
The government said past incentive policies helped increase EV adoption. Tax exemptions on EV imports, investment in charging stations and support for private sector participation have encouraged the market. Lower running costs, affordable pricing and modern features have also attracted buyers towards EVs.
The government has set a target to increase the share of EVs in private vehicles to 90 percent by 2030. Policies have also been proposed to expand charging infrastructure and convert combustion-engine vehicles into electric vehicles.
A task force led by Joint Secretary Krishna Raj Panth of the Ministry of Physical Infrastructure and Transport prepared the report. The committee was formed through a ministerial decision taken by then Minister Kulman Ghising on September 15 last year.
The report studied existing EV laws, policies, tax structures, battery management and charging infrastructure. It was submitted to the ministry on October 25 and has now been made public.
According to the report, Nepal can gain multiple benefits by promoting EV adoption.
The report highlights increased domestic use of hydropower as one of the biggest opportunities. Since over 90 percent of Nepal’s electricity is generated from hydropower, EV charging can help increase internal electricity consumption and reduce dependence on imported fossil fuels.
The government also sees EVs as a way to save foreign currency reserves by cutting petroleum imports. Reduced air pollution in cities like Kathmandu, lower noise pollution and better public health are other major benefits mentioned in the report.
The report states that EV charging costs are up to 12 times lower than petrol expenses. Maintenance costs are also lower due to fewer moving parts.
The taskforce said the EV ecosystem can create new jobs in charging infrastructure, battery repair, assembly plants and vehicle servicing. It also noted that EV expansion can help Nepal achieve its Sustainable Development Goals and net-zero carbon targets.
The report further mentions the possibility of Nepal becoming an EV manufacturing hub due to low-cost manpower, abundant hydropower and access to Chinese technology. Export opportunities to neighboring countries have also been highlighted.
The government believes EV adoption can modernize Nepal’s public transport system through electrification and digitalization. Advanced safety technologies such as ADAS and AI-based systems used by brands like BYD and Tesla are also expected to help reduce road accidents.
The report says rising EV demand can encourage more investment in renewable energy projects including solar and hydropower. It also sees opportunities for local software development and technology startups.
Other opportunities mentioned include improved urban mobility, better tourist experience through cleaner public transport, and technical skill development for youth, use of advanced battery technologies and digital vehicle tracking and charging management systems through Internet of Things (IoT) platforms.
