Nepal Quietly Becomes a Global Leader in EV Adoption, Surpassing 75% Market Share

While global attention often gravitates toward electric vehicle adoption in the U.S., Europe, and China, the small Himalayan nation of Nepal has quietly staged one of the most dramatic electric transitions in the world. According to a new report from The New York Times, 76% of all new passenger vehicles and 50% of light commercial vehicles sold in Nepal over the past year were electric—a figure nearly four times the global average.

The reasons for Nepal’s rapid electrification are as surprising as they are strategic. Following a 2015 fuel crisis with India, Nepal accelerated development of its hydropower infrastructure, capitalizing on the rivers that flow from the Himalayas. Today, nearly all of the country’s electricity is clean, domestic, and renewable, giving Nepal a rare energy advantage in the region.

Paired with aggressive import tax reforms—with EVs taxed as low as 40%, compared to 180% for internal combustion engine (ICE) vehicles—EVs have become not only cleaner but also cheaper. In many cases, an electric Hyundai SUV now costs less than its gasoline equivalent.

Infrastructure is expanding quickly too. The government has installed 62 public charging stations, and hundreds more have been added by private businesses and homeowners. On average, EV charging in Nepal costs up to 15 times less than refueling with gasoline.

China has played a pivotal role in Nepal’s EV revolution. Automakers like BYD have taken over dealership floors, pricing out Indian brands and even drawing comparisons to Tesla—at half the cost. Former solar distributor Yamuna Shrestha, now BYD’s exclusive dealer in Nepal, expects to sell 4,000 vehicles in 2025 across her 18 dealership locations.

Everyday drivers are reaping real benefits. One retiree, Jit Bahadur Shahi, bought a $33,000 electric minibus to run routes between Kathmandu and his hometown. With just ten trips a month, he covers his loan payments and anticipates full ownership within four years.

Still, the transition is not without hurdles. While electric buses and cars are spreading fast, motorbikes and public buses—the dominant mode of transportation for most citizens—are still largely fossil-fueled. Sajha Yatayat, a government-backed bus operator, runs only 41 electric buses, though China has pledged to donate 100 more. Experts estimate that Nepal would need at least 800 electric buses to truly electrify public transit in the Kathmandu Valley.

Political instability could also threaten progress. Nepal has had three prime ministers in five years, and policy consistency remains fragile. Tariffs on EVs are slowly creeping back up, and there’s still no national strategy for battery recycling or vehicle safety standards. “If incentives disappear, the market could shift back to gas,” warned Rajan Babu Shrestha, a Tata Motors distributor in Nepal.

Even with these concerns, Nepal’s EV story stands out globally. In just five years, it has transformed from a fuel-dependent nation to a genuine electric vehicle haven, leapfrogging much larger economies through a mix of energy self-sufficiency, smart policy, and competitive imports.

From virtually no EVs to nearly full electrification of new sales, Nepal is no longer just watching the EV revolution—it’s leading it.