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EV sector faces challenges amidst growing popularity
english.ratopati.com, 17 Aug '26Headlines 17 Aug 2026
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Nepal's electric vehicle (EV) market has expanded rapidly, with EVs becoming increasingly common on the country's roads. However, the government still lacks accurate, integrated data on the number of electric vehicles registered and operating nationwide.
The Department of Transport Management (DoTM) says its central office does not have an updated record of EV registrations across the country. According to Director Mani Ram Bhusal, accurate figures would require data from transport offices in all seven provinces to be collected and consolidated. Although basic information is recorded when vehicles are imported, subsequent registration data at provincial level does not consistently reach the centre.
The DoTM expects this problem to improve with the introduction of its Electronic Driving License and Vehicle Registration System (EDL VRS), which is currently being tested and implemented. Once fully operational, the system should allow nationwide registration data to be accessed centrally.
The rapid growth of EV imports has been encouraged by government efforts to reduce dependence on increasingly expensive petroleum products. However, stakeholders warn that inadequate charging infrastructure, repair facilities, skilled manpower and clear regulations are putting billions of rupees of investment at risk. Poor roads, concerns over importer responsibility and the absence of a long-term battery management system are also raising questions about whether Nepal's ambition for green transportation could eventually create new problems.
EVs: Necessity rather than luxury
Surendra Kumar Upoti, President of the Nepal Automobile Dealers Association (NADA), believes EVs have become a necessity rather than a luxury for Nepal. He argues that they offer both economic and environmental advantages over petrol and diesel vehicles by reducing fuel imports, retaining foreign currency within the country, increasing domestic electricity consumption, creating employment and helping tackle climate change.
Upoti also disputes claims that infrastructure investment has been inadequate, pointing to more than 2,000 charging stations built through cooperation between the Nepal Electricity Authority and the private sector. Fast-charging facilities along highways are also being added.
However, Saroj Sitoula, President of the Federation of National Transport Entrepreneurs of Nepal, says the rapid import of EVs without adequate infrastructure is causing serious difficulties, particularly for public transport and commercial operators. He alleges that some importers are prioritising sales and profits while providing inadequate after-sales support.
Sitoula says the lack of clear standards governing imported vehicles, warranties and guarantees has created unhealthy competition. Spare parts are also expensive and difficult to obtain. If an EV breaks down outside Kathmandu, it may have to be towed to the capital for repairs, potentially leaving commercial vehicles idle for months.
Shortage of skills and repair facilities
Transport expert Hemant Tiwari, General Secretary of the Society of Transport Engineers Nepal (SOTEN), says after-sales service remains poor. Although highways are gradually becoming more EV-friendly, the country has a severe shortage of repair centres and trained technicians. Even relatively minor components often have to be sourced from China or India.
High-voltage EV systems also require specialised skills that conventional mechanics do not possess. Sitoula has therefore called on the Council for Technical Education and Vocational Training (CTEVT) to focus on producing qualified EV technicians and engineers.
Flooding and battery risks
Flooding presents another concern, particularly in Kathmandu, where roads can become submerged after relatively normal rainfall. Experts warn that water entering an EV's battery system could cause severe damage. Tiwari says better drainage infrastructure and a comprehensive drainage master plan are needed.
Sitoula also highlights the high cost of batteries, noting that failure of even a single cell can sometimes require replacement of the entire battery pack. However, Upoti argues that EVs with appropriate IP ratings can withstand significant water exposure without major battery or motor problems.
Battery disposal represents a longer-term environmental challenge. Tiwari warns that Nepal currently has no clear policy for managing the batteries of thousands of EVs once they reach the end of their useful lives. Improper disposal could result in chemical pollution. Sitoula is calling for a permanent legal framework covering battery reuse, recycling and disposal.
Calls for stable policy
Transport entrepreneurs say they support EV adoption and the use of Nepal's domestic hydropower, provided their investments are protected. Sitoula has called for a stable EV policy lasting at least five to 10 years, more highway charging infrastructure, incentives for private-sector workshops, and guarantees for concessional loans and insurance.
The government says it is preparing reforms to address these concerns. Speaking at the Naima Mobility Expo 2026, DoTM Director General Rajiv Pokhrel said a new Transport Management Act has been drafted to reflect federalism and rapid technological change.
The government has also introduced the National Transport Policy 2083, which prioritises digital mobility, road safety and vehicle quality. A National Standard for Vehicle Import is being prepared to address concerns over indiscriminate imports. Authorities are also working to regulate ride-sharing services and create conditions for converting older petrol and diesel vehicles into hybrid and electric models.
The government's stated objective is to build a more organised, sustainable and technology-friendly transport system, but stakeholders say achieving that goal will depend on infrastructure, technical expertise, clear standards and a long-term policy framework keeping pace with EV adoption.
