EV Imports Nepal: Surge to NPR 16.33 Billion as Global Oil Prices Skyrocket

31st March 2026, Kathmandu

Amidst a volatile global energy market and rising geopolitical tensions, Nepal has witnessed a massive surge in the adoption of Electric Vehicles (EVs).

EV Imports Nepal Surge

According to the latest data from the Department of Customs for the first eight months of the fiscal year 2025/26, EV imports in Nepal reached a staggering value of over NPR 16.33 billion.

Global Oil Crisis and Its Direct Impact on Nepal

The ongoing conflict involving the US, Israel, and Iran has entered its fifth week, sending shockwaves through the international oil market. On Monday morning, crude oil prices jumped by over 3%, crossing $115 per barrel.

With the threat of the Strait of Hormuz being blocked, a gateway for 20% of the world’s oil supply, experts predict prices could hit $130 per barrel in the coming weeks.

The ripple effect is already visible in Nepal, where petrol prices hiked by NPR 30 and diesel by NPR 25 per liter within the short span of the month of Chaitra. This drastic price hike has accelerated the shift toward sustainable alternatives.

Import Statistics: 19,477 Units in 8 Months

As consumers pivot away from Internal Combustion Engine (ICE) vehicles to escape soaring fuel costs, EV imports in Nepal have hit record highs.

Total Units Imported: 19,477 units

Total Outflow of Funds: NPR 16,33,74,36,000

Total Revenue Collected: NPR 9,58,92,81,000

This shift is seen as a vital move to protect Nepal’s foreign exchange reserves and reduce the growing trade deficit caused by petroleum dependency.

China Dominates the Nepalese EV Market

China continues to be the leading supplier of electric mobility to Nepal, holding a lion’s share of the market.

Smaller numbers of units were also imported from South Korea, Austria, and the UK, showcasing a diversifying but China-centric market.

Revenue and Economic Contribution

The EV boom has also bolstered the national treasury. In just eight months, the government collected NPR 9.58 billion in customs revenue from EV imports:

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From Chinese Imports: NPR 6.81 Billion

From Indian Imports: NPR 1.83 Billion

Proactive Measures: NADA and NAIMA’s Role

To ensure the sustainability of EV imports in Nepal, industry leaders are taking a proactive stance. The NADA Automobiles Association of Nepal and the Nepal Automobile Importers Association (NAIMA) are actively coordinating with the Nepal Government to resolve infrastructure and policy bottlenecks.

Their collaborative efforts focus on:

Infrastructure Expansion: Pushing for the rapid installation of high-capacity DC fast-charging stations across major highways to eliminate “range anxiety.”

Policy Consistency: Working with the Ministry of Finance to ensure stable tax regimes, preventing sudden customs duty hikes that could dampen consumer confidence.

Financial Facilitation: Coordinating with the Nepal Rastra Bank (NRB) to maintain favorable loan-to-value ratios for EV financing.

Technical Training: Promoting skill development for local mechanics to handle advanced EV technology, ensuring robust after-sales support.

Conclusion: A Path Toward Energy Security

The transition to electric mobility is proving to be a silver lining for the Nepalese economy during this global energy crisis.

By reducing the reliance on imported fossil fuels, Nepal is not only addressing environmental concerns but also ensuring long-term energy security.

With NADA and NAIMA acting as bridge-builders between the private sector and the government, the road ahead for EV imports in Nepal looks promising.

A unified approach will be the key to transforming this temporary surge into a permanent, green revolution for the nation’s transportation sector.

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