Nepal has witnessed a significant rise in the import of electric vehicles (EVs) during the first ten months of the current fiscal year. According to data released by the Department of Customs, a total of 42,102 EVs were imported between mid-July and mid-May, marking a 45.90% increase compared to the same period last fiscal year, when only 28,856 EVs were brought in.

This surge translates into an additional 13,246 EVs entering the country this year, reflecting Nepal’s growing shift towards environment-friendly transportation alternatives.

The total spending on EV imports this fiscal year has reached Rs. 33.32 billion, which is 27.92% higher than the Rs. 26.04 billion spent during the same period last year.

Likewise, customs revenue from EVs has also seen a sharp rise. The government collected Rs. 17.47 billion in EV-related customs duties this fiscal year, compared to Rs. 10.92 billion last year. This marks a 59.90% increase in revenue, amounting to an additional Rs. 6.54 billion.

The Nepali government has been promoting EVs as part of its eco-friendly policy and has kept customs duties relatively lower compared to traditional fuel-based vehicles. However, with preparations underway for the upcoming fiscal year’s budget, EV importers are concerned that the government might raise duties on EVs, leading to speculation that this year’s surge in imports could be due to anticipation of future tax hikes.

This pattern aligns with past trends where goods such as tobacco, alcohol, and luxury items see spikes in imports just before the budget announcement, as traders try to beat expected duty increases.

Country-wise Breakdown: China Leads with 82% Share

EVs have been imported from over ten countries, including China, India, Japan, South Korea, Indonesia, the USA, Thailand, Germany, Malaysia, Qatar, Singapore, Taiwan, and Hong Kong.

However, China overwhelmingly dominates Nepal’s EV import market, supplying 34,755 units, which accounts for 82.55% of total EV imports. India follows with 7,150 EVs, making up 16.98% of the total.

The imports range from two-wheelers (scooters) to four-wheelers such as cars, jeeps, vans, and electric buses.

What This Means

The sharp rise in EV imports — both in quantity and monetary value — signals a growing demand for clean energy vehicles in Nepal. However, the upcoming budget will play a crucial role in either supporting or stifling this momentum. If the government decides to increase duties, it could slow down the adoption of EVs and affect future import trends.

For now, Nepal’s EV market is booming — driven by policy incentives, increasing environmental awareness, and fears of potential tax hikes.