KATHMANDU: The government has updated its vehicle emission standards for the first time in 13 years.
The new Nepal Vehicle Pollution Standards, 2025, which came into effect on June 9, have prescribed Euro 5 emission standards for two- and three-wheelers, and Euro 6 for four-wheelers. Motor vehicles that fail to meet these standards cannot be imported into the country from now onwards.
The Nepal Vehicle Pollution Standards, 2025, replace the emissions standards, which allowed imports of motor vehicles that meet Euro 3 standards, dating back to 2012.
However, the new emission standards will not apply to the import of construction equipment such as tractors and cranes, as well as special military vehicles, provided they receive clearance from the Ministry of Defense. Similarly, the updated standards apply only to new vehicle imports. Motor vehicles already in use, or those already ordered via bank letters of credit, will not be affected.
While environmental activists have welcomed the decision, saying that it was long overdue, automobile dealers and transport operators are feeling uneasy about the abrupt transition.
Sudden Transition Raises Concerns
The sudden jump from Euro 3 to Euro 6 has sparked both praise and criticism. While environmental activists have welcomed the decision, saying that it was long overdue, automobile dealers and transport operators are feeling uneasy about the abrupt transition.
Government officials argue that the new standards will reduce air pollution, improve vehicle quality and prevent Nepal from becoming a dumping ground for outdated vehicles. However, automobile dealers say the government is unfairly targeting vehicle imports while ignoring major polluters such as brick kilns and aging cars still operating on the roads.
They also warned of possible price hikes, maintenance challenges and increased foreign currency outflow.
Commercial Vehicles to Get Costlier
Bardan Basnet, Deputy Director at Agni Incorporated—the official distributor of Mahindra vehicles in Nepal, said the transition to new emissions standards is unlikely to raise the prices of private cars significantly. “Most private cars already meet Euro 5 or 6 standards,” he said. “But since commercial vehicles like buses and trucks are mostly Euro 3 or 4 compliant, upgrading to Euro 6 could increase their prices by 5-10%.”
This could discourage transport operators from purchasing new vehicles, potentially affecting the public transport sector, he added.
Basnet also pointed to Nepal’s poor road conditions and said the local roads are not ideal for Euro 6 vehicles. “Euro 6 compliant vehicles require better roads to perform well. Without them, the efficiency and durability of the vehicles will be affected,” he said.
Stating that Euro 6 vehicles depend heavily on software-based diagnostics and repairs, Basnet said rural workshops may struggle due to a lack of trained technicians, although it should not be a problem for workshops in urban areas. “However, the change is important for improving air quality in the country,” he added.
Kapil Shiwakoti, Head of the Environment Committee at the NADA Automobile Dealers’ Association, welcomed the new rule but called for some flexibility for vehicles already ordered.
Benefits will Outweigh the Costs: Govt
Dhirendra Kumar Pradhan, a Joint Secretary at the Ministry of Forests and Environment, urged stakeholders not to focus only on the financial aspect. “Vehicles may become expensive, but the long-term benefits are greater,” he said. “We are reducing pollution, improving vehicle quality and protecting Nepal from being a dumping ground for outdated technology.”
He also said the decision aligns with Nepal’s global climate commitments and enhances the country’s reputation.
Pradhan added that the government is also preparing to introduce similar regulations for other highly polluting sectors, including brick kilns and cement factories. “Pollution control is our collective responsibility. Everyone needs to contribute,” he added.
Industry Calls for Flexibility
Kapil Shiwakoti, Head of the Environment Committee at the NADA Automobile Dealers’ Association, welcomed the new rule but called for some flexibility for vehicles already ordered.
“We support the decision as it is good for the environment,” he said. “But since the government did not provide any advance notice, dealers should be allowed to import vehicles that have already been ordered. We have requested the government for a one-time exemption.”
