China gains from Nepal's EV stride as India loses out

IN 2019-2020, Nepal imported just one unit of four-wheeler electric vehicle (EV), but that number grew to 13,578 units or over 70% of its total imports by 2024-25.

- MADHUSREE GOSWAMI

IN 2019-2020, Nepal imported just one unit of four-wheeler electric vehicle (EV), but that number grew to 13,578 units or over 70% of its total imports by 2024-25. The Himalayan country's EV imports have far outpaced inward shipments of cars powered by internal combustion engines (ICE) in recent years.

That was a remarkable stride for a lower middle-income country as the world average of battery-powered mobility is still around 20%. However, this rapid transition of the neighboring kingdom into EVs has enabled China to quickly replace India as the dominant player in Nepal's automobile market.

In 2017-18, Nepal imported 19,895 units of four-wheelers, including cars, passenger buses and minibuses—and 18,681 of these (93.8%) were shipped from India, with China's share being just 45 (0.23%).

For the next three years, the market shares have remained more or less the same, but the change has been dramatic since 2022-23. In 2024-25, Nepal imported 19,257 four-wheeler units, and 53% of these came from China, and just under 44% from India (see chart).