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Nepal's EV sales boom helping to save on oil imports and alleviate smog – The Mirror


Nepal’s abundant hydroelectric power is helping the Himalayan nation cut its oil imports and clean up its air, thanks to a boom in sales of electric vehicles

A man charges his electric vehicle at a charging station in Kathmandu, Nepal(Copyright 2024 The Associated Press. All rights reserved.)

There’s a boom in electric vehicle sales in the picturesque Himalayan nation of Nepal with hydroelectric power playing a prominent role in slashing its oil imports and cleaning up its air.

The sale of electric vehicle imports has increased sharply, doubling each year for the last two. Green energy, primarily harnessed from river-fed hydro-electricity, forms the backbone of Nepal’s electricity production. With such an abundant source of clean energy at their disposal, it has facilitated a rapid expansion of EV charging networks across the country.




The Nepal Electricity Authority estimates that the use of these new electric vehicles has reduced oil import costs by $22million annually – and the savings are increasing. Electricity availability in Nepal has seen a meteoric rise over the past 30 years, primarily due to the completion of numerous hydroelectric projects.

This transformation now means that only 6% of the populace lack access to the fast-growing grid – signifying a marked advantage over their neighbours in adopting EVs. The peak capacity of Nepal currently stands at 2,600 megawatts, a figure poised to continue rising with the completion of more hydropower plants.

Solar plants also contribute a modest amount to the overall power generation. Emphasising Nepal’s potential in utilising clean energy optimally, Kanak Mani Dixit, a highly regarded environmental and civil rights activist, said: “Our electricity in the grid is from hydropower so it is clean energy. And so Nepal is ideally placed to use electricity to run our vehicles in the best way it should be, which is that the energy source itself is clean. It is not coal, gas or nuclear or petroleum,”.

While there’s no official tally on sales just yet, it looks like the Chinese-made BYD Atto 3 and Tata Nexon from India are leading the charge in the electric passenger sedan market. Nepal is serious about its green credentials, aiming to increase EVs to a quarter of all auto sales by 2025, and 90% by 2030, as part of its climate commitments.

In a bid to accelerate EV uptake, Nepal’s government has slashed import duties on these eco-friendly rides to between 25% and 90%, while traditional petrol and diesel vehicles attract hefty duties ranging from 276% to 329%. The country is also rapidly expanding its network of charging points.

Sagar Mani Gnawali, who oversees Electric Vehicle Charging infrastructure Development, revealed that Nepal boasts 400 charging stations, with plans to double this figure within the next year. Cardiac surgeon Jyotindra Sharma, an EV driver for four years, takes pride in his 2019 KIA Niro, knowing he’s cutting down on the smog that chokes Kathmandu valley.



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