Nepal Ranks Second Globally as EV Adoption Surges
Nepal has emerged as one of the world's fastest-growing electric vehicle markets, with electric cars accounting for about 73% of new car sales and the government preparing for an "EV Decade."
Nepal is accelerating its transition toward electric mobility, emerging as one of the world's leading markets for electric vehicles. Recent figures highlighted alongside the newly unveiled National Transport Policy 2026 place Nepal second globally in electric car market share, behind Norway.
The shift reflects a combination of factors that have made electric vehicles increasingly attractive in Nepal. Expanding domestic hydropower generation, higher petroleum costs and government tax measures supporting electric transport have all contributed to a rapid change in the country's vehicle market.
Electric Cars Take a Major Share of New Sales
The scale of the transition is particularly visible in new vehicle imports. According to figures associated with the 2026 transport policy, private electric cars now account for more than 70 percent of newly imported private vehicles in Nepal.
Electric vehicles accounted for an estimated 73 percent of new car sales, putting Nepal behind Norway's reported 97 percent share. The figures underline how quickly electric mobility has moved from a developing market segment to a major part of Nepal's passenger-vehicle market.
- 63,280: EVs registered nationwide by the end of fiscal year 2025/26.
- 10,845: Electric vehicles imported during the last fiscal year.
- Rs 25.559 billion: Reported value of those EV imports.
- 73%: Estimated share of electric cars among new car sales.
- 97%: Norway's cited EV share, keeping it ahead of Nepal.
The import figures also show the growing economic significance of the sector. Nepal brought in 10,845 electric vehicles during the last fiscal year, with the imports valued at Rs 25.559 billion. Nationwide EV registrations had reached 63,280 units by the end of fiscal year 2025/26.
Hydropower and Policy Drive the Transition
Nepal's electricity resources are central to the country's electric mobility strategy. With domestic hydropower production creating a growing supply of electricity, transportation is increasingly being viewed as an area where that energy can replace imported petroleum.
Rising petroleum costs have added another incentive for consumers and policymakers to move toward electric vehicles. At the same time, government tax concessions have helped make EVs more competitive and support a broader effort to reduce dependence on fossil fuels.
The National Transport Policy 2026 places this transition within a wider national transport strategy. Rather than treating electric mobility simply as a market trend, the policy approach seeks to expand electrification across different parts of the transport system.
Government Declares an "EV Decade"
The government has formally designated the coming ten-year period as the "EV Decade," signaling a stronger focus on expanding electric transportation. The strategy is expected to move beyond private cars and give greater priority to electrifying mass public mobility.
This change in emphasis is significant because the long-term impact of electric transport will depend not only on how many private EVs are sold, but also on how successfully public transportation can shift away from fossil fuels.
The policy direction therefore connects vehicle electrification with broader road and public-transport planning. The goal is to make electric mobility part of the country's wider transportation system rather than limiting it to individual vehicle ownership.
Charging Network Set for Further Expansion
Infrastructure will be a crucial part of sustaining Nepal's EV growth. More than 2,000 public charging hubs are currently operational, while plans call for the charging network to expand further across the country.
A larger and more accessible charging network could help address one of the central requirements of widespread electric mobility: ensuring that drivers can reliably recharge their vehicles beyond major urban areas and along important travel routes.
The expansion of charging infrastructure is also expected to support the government's broader objective of making electric public transportation more practical. For a country with challenging terrain and long-distance road connections, infrastructure availability will remain an important part of the transition.
Carbon Finance and Battery Recycling
Nepal's emerging electric-mobility strategy also looks beyond vehicle sales and charging stations. Future low-carbon transport projects are expected to make greater use of international carbon trading mechanisms and green bonds as potential sources of financing.
These financial tools are being considered in connection with specialized battery-swapping networks and other low-carbon transport infrastructure. Such mechanisms could help support investment as the country expands its electric transportation system.
Battery management is another issue receiving attention as EV numbers increase. The policy direction includes developing "end of life" environmental guidelines for the safe handling, recycling and management of lithium-ion vehicle batteries.
This is increasingly important as electric vehicle adoption grows. A successful transition requires not only replacing petrol and diesel vehicles with electric alternatives, but also developing systems to responsibly manage batteries once they are no longer suitable for continued vehicle use.
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