Chinese EVs in Nepal Lead Market Share: Domestic Brands Fight Back
Chinese EVs in Nepal
26th November 2025, Kathmandu
The Nepali automotive sector is experiencing a massive upheaval as electric vehicles (EVs) now constitute the majority of new passenger car sales.
Chinese EVs in Nepal
Significantly, Chinese EVs in Nepal have surged to the forefront, capturing well over half of the new car market share. Brands like BYD, Nammi, and MG are establishing dominance, challenging traditional players by offering a potent mix of affordability, long range, and advanced features.
This rapid shift, fueled by reduced import taxes on EVs compared to heavily-taxed combustion engine vehicles, necessitates a strong strategic response from established Korean and Indian manufacturers like Hyundai and Tata.
The local assembly strategy and focus on new models like the Tata EV Curvv and the locally-produced Creta from Hyundai Nepal represent the core of this counterattack.
The Rise of Chinese Automotive Power
Chinese manufacturers quickly capitalized on Nepal’s progressive EV tax structure. Their successful entry is built on delivering volume and value across various segments.
BYD, the global EV giant, leads the import chart, primarily with models like the Atto 3 and Dolphin. These vehicles are priced aggressively and boast impressive WLTP-certified ranges.
Dongfeng’s Nammi 01 has become the country’s volume leader among small electric vehicles, proving that Chinese EVs in Nepal can capture the budget-conscious consumer seeking long range (up to 430 km).
Newer entrants like Leapmotor and Deepal are also gaining traction, offering premium features such as high-quality interiors and advanced connectivity at price points well below comparable European or Japanese models. This compelling value proposition drives significant consumer acceptance.
Indian and Korean Countermeasures
Traditional market leaders, particularly Indian and Korean brands, are not conceding the market easily. They actively adapt their strategies to reclaim their lost market share.
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Hyundai Nepal, through its official distributor, has implemented a crucial strategy: local assembly of the popular Creta SUV. This move significantly reduces the import duty burden on the ICE version, dropping the price by several lakhs and making it a viable alternative to high-end EVs. This local production provides a major pricing advantage.
Tata Motors, a key player in the mass-market EV segment globally, is strengthening its presence. The existing popularity of the Nexon EV and Tigor EV, often used as taxis, provides a strong foundation.
Upcoming models like the Tata EV Curvv are highly anticipated. These models are designed specifically to compete head-to-head with the features and pricing of the dominant Chinese crossovers.
The Financial Incentive Driving Change
The shift to Chinese EVs in Nepal and EVs in general is underpinned by powerful financial logic that consumers cannot ignore. Fossil fuel vehicles face debilitating tax rates ranging from 180% to 300%. In contrast, EVs benefit from substantially lower tariffs, making several electric models cheaper than their petrol counterparts.
Due to Nepal’s heavy reliance on hydroelectric power, the cost of charging an EV is estimated to be up to 15 times cheaper than refueling a petrol car. This cost-effectiveness is the most persuasive factor for the average Nepali consumer.
A New Automotive Landscape
The data reveals that the 51 kW to 100 kW motor capacity segment is seeing the highest volume of EV imports. This suggests a consumer preference for powerful, yet still tax-efficient, mid-range EVs.
While ICE vehicle imports also rose in the first half of the current fiscal year, the overwhelming dominance of EVs in the new passenger car sales indicates a permanent market transition.
Hyundai Nepal and Tata EV must rapidly introduce locally-assembled and next-generation electric models to effectively challenge the current lead established by Chinese EVs in Nepal.
The competition for market share will only intensify as more global players recognize Nepal as an unexpected leader in the global electric mobility transition.
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