The electric vehicle (EV) market in Nepal has made a complete turnaround: now dominated by Chinese brands three-to-one over Indian brands. In fiscal year 2024–25, nearly 75% of newly sold vehicles in Nepal were EVs—and approximately 70% of those were Chinese EVs.

Many factors have driven the rise of EVs in Nepal. The combination of cheap hydropower, low import duties, and generous EV benefits have greatly incentivized the electric vehicle option. Chinese brands of vehicles and their assortment such as BYD, Great Wall Motors, and MG have built their market share with compelling options like the BYD Dolphin and MG ZS, by providing loaded models at affordable prices, with varying amounts of the latest tech or accessories available, and timely availability to the consumer. 

Indian brands and companies were the main players in Nepal’s auto market, prior to Chinese brands establishing a foothold in Nepal in the past 2-3 years. Elements like slow EV rollout, limited financing options, and a small product line variety have produced problems for Indian brands to compete against the Chinese brands. As noted by some analysts in the industry, if Indian brands and companies cannot compete effectively outside of India, this could indicate larger problems with regard to their EV plans.

Nepal has undergone a swift transition to EVs (policy adoption, the use of clean energy, competition in the market), and can be considered a regional leader in electric mobility, with China in the driver’s seat.