KATHMANDU: Electric vehicles (EVs) imported from China are becoming more expensive for Nepali importers as the Chinese yuan continues to strengthen against the Nepali rupee.
Although Chinese automakers have not raised EV prices and remain engaged in an ongoing price war, the rising value of the yuan has increased the import cost for Nepali traders. For now, dealers have not passed these costs on to consumers.
According to Nepal Rastra Bank, the Chinese yuan has appreciated by exactly one rupee in the past six months. The selling rate, which stood at Rs 19 on April 14, 2025, reached Rs 20 as of October 9. As the yuan gains strength in the international market, the Nepali currency has continued to weaken.
Importers say the currency shift has significantly increased their costs. “The continuous rise in the yuan’s value has added to our expenses. The difference between opening a letter of credit (LC) for the same car six months ago and now is about Rs 1.5 to 2 lakh,” an importer told MeroAuto.
Currently, most EVs brought into Nepal are valued at around 150,000 yuan each (approximately USD 20,600) each. With every one-rupee rise in the yuan, the price of such a vehicle increases by roughly Rs 150,000. For higher-end models, the difference is even greater.
Despite the increase in import costs, dealers have so far kept prices stable to stay competitive amid intense market rivalry. “The cost is rising due to the stronger yuan, but the market is highly competitive right now. We can’t increase prices immediately. If the yuan keeps climbing, though, we might have to reconsider,” the importer added.
Businessmen warn that if the yuan’s upward trend continues, EV prices in Nepal could soon rise. While falling battery prices have helped offset some of the impact, they say the overall cost pressure remains.
Currently, about 70 % of EVs imported into Nepal come from China. Last year alone, over 8,000 Chinese EVs entered the Nepali market.
