Growing Interest in Electric Vehicles in Nepal
The summer heat was intense in Bhrikutimandap Exhibition Hall in Kathmandu on Saturday, but that did not deter Ishwar Rauniyar from exploring the Nepal Automobile Importers and Manufacturers Association (NAIMA) Auto Show. As he moved through the crowded alleys, rows of sleek electric vehicles (EVs) caught his attention. These modern cars, with their metallic finishes and advanced features, were a stark contrast to the usual scene at such events.
Rauniyar, a 52-year-old from Balaju, was particularly impressed by the EVs on display. “The look and features are amazing, even in vehicles priced below Rs3 million,” he said, pausing to admire a high-end SUV. This year’s auto show has become a showcase for Chinese and Indian EV manufacturers, each vying for a share of Nepal's growing market.
A Battle for Market Dominance
The event has seen a surge in interest, prompting organizers to extend the five-day exhibition until Monday. The competition among exhibitors reflects the fierce battle for dominance in Nepal’s EV market, with Chinese brands currently taking the lead.
One of the most popular stalls belonged to BYD, a leading Chinese EV manufacturer. Located directly opposite Mahindra’s stand, BYD unveiled the Atto 1, starting at Rs2.89 million, which attracted a steady stream of visitors. According to recent data, electric vehicles now account for 73 percent of all four-wheeled passenger vehicle imports in Nepal, one of the highest shares globally.
Imports of four-wheelers, including buses and private vehicles, increased by 27.04 percent year-on-year in the last fiscal year. EV imports alone climbed by 23.33 percent. Out of 22,907 four-wheelers worth Rs50.88 billion imported into the country, 16,701 were EVs valued at Rs41.23 billion.
Evolution of the EV Market in Nepal
Five years ago, the EV market looked very different. In fiscal 2019-20, Nepal imported only 236 EVs, mostly from China, worth Rs674 million. Petrol and diesel-powered vehicles dominated the market, with 10,310 units imported that year worth Rs9.24 billion.
Tata Nexon EVs were once the preferred choice for Nepali customers due to their affordability. From April 2021 to March 2022, sales of EVs began to rise significantly. Sipradi Trading, the authorized distributor of Tata vehicles in Nepal, reported selling more than 2,000 EV units that year, with the Nexon accounting for 90 percent of sales.
However, BYD quickly entered the market and gained a strong foothold, offering a new smart cockpit experience. Indian media reports suggest that India has sent a few hundred EV units to Nepal recently, but shipments have been hampered by slow domestic manufacturing and tough competition from Chinese brands.
Rising Trends and New Customers
This year, the response has been better than expected, with bookings showing promising results. Prerna Maharjan, BYD’s marketing executive, noted a surprising trend: women entrepreneurs are becoming a significant part of the customer base, with female buyers making up about 40 percent of BYD’s Atto 3 and Dolphin models.
Representing India, Mahindra launched its all-electric BE 6 and XEV 9e SUVs. Company officials reported overwhelming interest, with between 700 and 800 visitors visiting their stall daily. Sachin Arolkar, head of international operations at Mahindra Automotive, said Chinese competition has helped expand the market and raise customer expectations.
Younger Generations Influence Buying Decisions
Eighteen- and nineteen-year-olds are influencing their parents' buying decisions, according to Santoshi Nepal, senior marketing manager at Agni Incorporated, Mahindra’s authorized distributor in Nepal. Ground clearance and range are key factors attracting buyers.
Mahindra expects to cross three-digit bookings for its new EVs before the show ends. Prices for the BE 6 range from Rs5.7 million to Rs6.8 million, while the XEV 9e is priced between Rs6.9 million and Rs9.5 million. Even Mahindra’s internal combustion model, the 3XO, priced from Rs4.4 million, is drawing attention despite the EV rush.
Strong Attendance and Diverse Exhibitors
According to NAIMA’s media and marketing consultant Pratik Aryal, attendance has been impressive. More than 15,000 people attended on the first day, 13,500 on the second, and nearly 19,500 on the third. Organizers hope the total will reach 100,000 by Monday.
More than 50 automobile brands are participating this year, including 21 four-wheeler makers, 17 two-wheeler brands, seven commercial vehicle brands, and one three-wheeler manufacturer. Thirty-five new models, ranging from internal combustion to hybrid and electric, have been launched.
Emerging Players in the EV Market
Zeekar X, a Chinese luxury EV built on the Volvo platform, is another premium contender. Launched in Nepal last year, it sold over 50 units in its first year. Kishor Maharjan, head of sales at Pioneer Moto Corp, said they have taken more than 10 bookings in just the first three days. Prices start at Rs8.5 million.
Leapmotor, another Chinese brand, entered the Nepali market in November 2024 and has already sold 260 units. Its lineup includes the T03 hatchback at Rs2.79 million, the B10 sedan at Rs4.99 million, and the C10 SUV offered at a discounted Rs6.5 million during the show.
Two-Wheeler EVs Gain Popularity
Two-wheeler EVs are also attracting strong interest. Indian brand Ather launched the Rizta S family scooter, capable of carrying four people, with a 125km range, live location sharing, and an eight-year battery warranty. Prices start at Rs383,500. Nisaj Maharjan from Vaidya Energy, Ather’s official dealer, said they booked over 80 scooters in three days.
Chinese brand NIU made a splash as well, unveiling the RQi electric bike at Rs1 million and the FQi 300 scooter at Rs385,000. Manoj Thapa Magar of Eco Infinity said they had 18 bookings within an hour of the RQi launch.
By the end of the day, Rauniyar had visited nearly every stall. He was impressed but not yet ready to commit. “Most EVs have similar technology, even their batteries, just with different features,” he said. “I haven't made up my mind yet.”