Electric Vehicles in Nepal are gaining much popularity day by day. Nepal transportation sector (Specially EV Transportation) has grown rapidly in the past few decades. More hydropower plants come into operation and create an energy surplus. Nepal intends to shift its focus to electric mobility (e-mobility). This will not only help avoid the climate and health-impacts of traditional vehicles but will also increase consumption of clean energy produced within the country and reduce the trade deficit by decreasing the import of petroleum products.

The launch of an electric trolley bus service in 1975 heralded the introduction of EVs in Nepal, which was followed by three-wheeler Safa tempos in 1995. Despite this long history, as of 2020, the market size of EVs including electric two-wheelers and cars constituted a meager 1 percent of the country’s total vehicle fleet, indicating the considerable scope and potential for electric vehicles. The entry of brands such as Mahindra e20 plus, Hyundai Kona, Hyundai Ioniq, Kia Niro, BYD All-New e6, Tata Nexon and Peugeot Partner Tepee in the budget and mid-range categories gave a significant boost to EV sales. The imposition of a blockade by the Indian government gave a further fillip to their turnover, especially after 2015.

The Government of Nepal has already taken the initiative to start the procurement of 300 e-buses, which is a good move. If the Government of Nepal can come up with a good financing scheme along with operational guidelines similar to the FAME and FAME-II schemes in India, this could significantly boost the demand for electric buses. As the operational cost of e-buses will be substantially lower than of diesel buses, private operators will likely show interest in e-buses if the initial cost is affordable.