Nepal's EV Imports Drop 24% as Border Disruptions Slow Market

Nepal's electric vehicle (EV) market has recorded its first major slowdown in recent years, with EV imports declining by 24.03% during the last fiscal year. The drop is mainly attributed to prolonged disruptions at the Rasuwagadhi and Tatopani border points, along with higher import duties introduced in the latest national budget.

According to customs data, Nepal imported 13,004 electric vehicles worth Rs. 31.32 billion during the fiscal year. Overall four-wheeler imports also declined by 19.07%, reflecting broader challenges in the automobile sector.

The biggest reason behind the decline is the disruption of trade routes connecting Nepal with China. Since most EVs sold in Nepal are imported from Chinese manufacturers, delays caused by floods, landslides, road damage, and customs bottlenecks have significantly affected vehicle supply.

Another contributing factor is the increase in customs duties on several EV categories. The revised tax structure has pushed up prices, particularly for premium electric vehicles, making them less attractive to buyers. Many importers also stocked vehicles before the new budget came into effect, reducing the need for fresh imports during the fiscal year.

Despite the decline in imports, industry experts believe consumer demand for EVs remains strong. The current slowdown is seen as a supply-side issue rather than a drop in interest. Nepal continues to witness growing demand for electric mobility due to lower running costs, expanding charging infrastructure, and increasing model choices.

The situation may also affect upcoming automotive events, including the NAIMA Nepal Mobility Expo 2026 and the NADA Auto Show 2026. Dealers have expressed concern that delays at the northern border could impact the timely arrival of new vehicle models scheduled for launch.

While the current challenges may temporarily slow the market, the long-term outlook for Nepal's EV sector remains positive. Improved border operations and stable supply chains are expected to help the market regain momentum in the coming months.