Nepal has emerged as a global outlier in electric vehicle (EV) adoption. As of 2025, a staggering 80% of new vehicle sales in the country are electric—outpacing many nations with far stronger economies and infrastructure.
At first glance, this looks like a success story of sustainable mobility. But beneath the surface lies a risky, overcrowded market that could spell trouble for unsuspecting customers.
The surge in EV imports has resulted in a flood of brands vying for a small market like Nepal. A new EV brand enters the Nepali market every month, often with aggressive marketing, eye-catching prices and ambitious promises. However, many of these brands lack deep commitments in terms of infrastructure or long-term vision. While customers are spoilt for choice, the danger lies in whether those choices will still exist tomorrow. This overcrowding has created hyper-competition in the market dominated by dealers with limited capital, thin margins and little long-term commitment.
The surge in EV imports has created an unsustainable battlefield. Dozens of brands are chasing a relatively small number of customers. With low sales volume and intense competition, the entire market risks becoming top-heavy. When the economics do not work, it is often the customer who ends up stranded.
Many EV brands in Nepal are represented by local dealers operating on wafer-thin margins. Many lack the capital or infrastructure to sustain the long game.
The surge in EV imports has turned the market into an unsustainable battlefield. Dozens of brands are vying for a limited pool of buyers which has resulted in low sales volumes and fierce competition. As the economics falter, it is often the customer who is left stranded.
When Brands Disappear
If there is one market that offers a glimpse into what Nepal could face in the future, it is China. Despite being the global hub of EV production and government incentives, dozens of EV startups there have collapsed in recent years. Byton, once hailed as a Tesla rival, failed to launch a single model. Singulato Motors, which was backed by Alibaba, vanished before it could start commercial production. Likewise, Bordrin Motors, with over $1 billion in investment, went bankrupt in 2021. Qiantu Motors drew worldwide attention with the K50 EV but it failed to translate interest into actual demand. Hozon and WM Motor have downsized their operations significantly after sales started plummeting.
If this can happen in a market with scale, infrastructure and deep capital reserves like China, what could be the situation in Nepali automobile sector which lacks these buffers. Many EV brands in Nepal are represented by local dealers operating on wafer-thin margins. Many lack the capital or infrastructure to sustain the long game. As soon as business gets tough—or warranty claims rise—they may pivot to another brand, or simply close shop. The result? The customer ends up with an expensive, unsupported vehicle and nowhere to turn for help.
In this environment, who you buy from matters as much as what you buy. Before making the switch to electric, customers need to ask whether the brand has a long-term vision and presence in Nepal. It is important to know whether the company is rooted in other sectors like infrastructure, finance or telecom. Brands with deeper ties to the country are more likely to stick around and support their customers over time.
Also consider whether the brand has a stable track record—not just in marketing or sales volume, but in actual customer support and service continuity.
Malaysian brand Proton has taken a structure approach to mitigate risks. It is currently the only brand in Nepal operating under a COCO (Company Owned, Company Operated) model.
After-sales Service is Crucial
With EVs, after-sales service is not just about oil changes. It involves specialized technicians, battery diagnostics, software updates and access to parts. That makes it crucial to understand the service network of the brand you’re considering.
Ask your brands whether they have service centers in your area and neighboring regions. Check whether spare parts are readily available. Make sure they offer roadside assistance. Find out whether their technicians are specifically trained in EV maintenance and repair. Without this support system, even the most advanced EV can become a burden.
COCO Strategy: A New Model for the Market
In the early 2000s, Teku Road, the two-wheeler hub of Kathmandu, was packed with flash showrooms and competing banners. It felt like a new era for the automobile market. Today, nearly 60% of those brands have vanished. That is the lesson of this market: if the back-end isn’t strong, the front-end doesn’t last.
In the current EV wave, Malaysian brand Proton has taken a structure approach to mitigate risks. It is currently the only brand in Nepal operating under a COCO (Company Owned, Company Operated) model. This means the company owns its own showrooms and service centers.
This approach ensures uniform service standards at every outlet. It also brings direct accountability, with trained, salaried staff who are fully aligned with the company’s values. The result is stronger customer trust and a greater sense of long-term security.
In a market where dealers often switch brands or shut down, Proton’s COCO model brings unmatched peace of mind. While it is yet to be seen whether other brands will adopt this strategy, Proton has already acted—and that early commitment matters.
No Longer Just About the Car
In Nepal’s hypercompetitive EV market, the vehicle is only half the story. It is no longer just about performance, range or design. It is about the brand’s vision, its investments, its support system and its willingness to be accountable over the long haul.
So choose wisely. Do not just test drive the car, test drive the company behind it.
Five Things to Consider Before Buying an EV
1. Brand Stability
Make sure the manufacturer has a clear long-term vision and a strong presence—both globally and locally. Look into their financial health, market history, and track record in customer support.
2. Dealer and Network Strength
Check whether the dealer network is broad enough to cover your area and nearby regions. Equally important, confirm that the service centers are equipped to handle EV-specific diagnostics and repairs.
3. Warranty and After-Sales Support
Understand the full scope of the warranty—especially for the battery. Ensure parts are available and software updates are supported. Most importantly, ask who will honor the warranty if the dealer shuts down or switches brands.
4. Investment Depth in Nepal
Choose a company with diversified investments. Brands involved in infrastructure, finance, or telecom are more likely to stay committed than importers focused solely on short-term gains.
5. Business Model Confidence
Choose a brand that operates with direct control over its operations. Business models like Proton’s COCO ensure greater accountability, consistent service quality and long-term peace of mind.
