Latest data from the Department of Customs reveals a decline in import of four-wheeler electric vehicle (EV) alongside a strong comeback for internal combustion engine (ICE) vehicles.
During the last fiscal year, Nepal imported vehicles worth Rs 103.64 billion, generating Rs 72.83 billion in government revenue. However, the high import volume continues to strain the country's foreign exchange reserves and balance of payments.
Key Data & Import Trends
| Vehicle Category |
Key Figures |
Market Trend |
| Total Auto Imports |
Rs 103.64 Billion |
Strong overall consumer demand |
| Electric Four-Wheelers |
15,171 units (Down from 17,381) |
12% Drop due to tax changes & slow infrastructure growth |
| Fuel Two-Wheelers |
250,000+ units (Rs 33.07 Billion spent) |
Surged by 50,000 units, dominating the market |
| Electric Two-Wheelers |
27,000 units (Up from 14,000) |
Nearly doubled, but still a small fraction overall |
| Commercial Vehicles |
~12,000 units |
Moderate uptick, signaling early recovery in construction/transport |
Why Did the EV Surge Slow Down?
Automobile dealers point to two main factors driving the EV slowdown:
-
Policy Instability: Frequent changes to EV tax structures in recent budgets have eroded buyer confidence.
-
Infrastructure Lag: Slow expansion of charging networks across the country continues to cause range anxiety.
Even with fewer four-wheeler imports, the state collected Rs 21.61 billion in customs duty from Rs 34.24 billion worth of EV imports—showing that electric mobility has quickly become a key source of government revenue.
The data reveals that petrol-powered options remain deeply entrenched in Nepal. The surge in fuel-based two-wheelers highlights that green mobility is not replacing ICE models as fast as anticipated.
While increased commercial and three-wheeler imports reflect growing local self-employment and economic revival, economists warn that the bulk of auto spending remains focused on private consumption and luxury goods rather than manufacturing.
Experts argue that for green mobility to succeed, the government must move beyond viewing vehicles primarily as tax cash cows and invest heavily in sustainable infrastructure to restore EV market confidence.
