The adoption of EVs in Nepal began in 1975 as an alternative mode of transportation aimed at reducing air pollution. The introduction of electric transport initially showed promise, contributing to environmental and mobility improvements across South Asia. However, despite a strong start, the EV sector in Nepal struggled to meet long-term expectations.
The first electric transport initiative in Kathmandu was the trolley bus system, followed by the introduction of SAFA Tempo. These were pioneering efforts in South Asia at the time, but due to technical, operational, and policy challenges, they were eventually discontinued. The SAFA Tempo, in particular, failed to sustain its presence in the market. In later years, various international brands began importing and selling EVs with modern technologies, driving significant market growth. By 2018, Nepal had over 41,000 EVs, (IEEE, 2024) including two-wheelers, three-wheelers, and four-wheelers. However, to sustain this momentum and transition to a fully clean transportation system, Nepal must take further steps to enhance infrastructure, policies, and technological advancements in the EV sector.
With various types of EVs currently being produced and developed, it is logical for a budget-constrained country to prioritize in cost efficient EVs. These EV types have a well-established track record of reliability and performance. Moreover, with many renowned automakers already manufacturing they are becoming more economically viable and affordable. Public charging stations is going to establish in key commercial areas of cities like Itahari, Kathmandu, Chitwan, Pokhara and so on; while dedicated charging parking lots will be built along major highways to accommodate the growing number of EVs.
The Public charging stations will centralize EV charging demand at specific locations, allowing for targeted upgrades to power distribution infrastructure, thereby optimizing costs. Additionally, highway-side charging parking lots will ensure convenient and immediate charging access for EVs, enhancing long-distance travel feasibility. With Nepal set to achieve surplus power generation through new hydropower projects, it enhances a rapidly expanding energy market. Additionally, with widespread electricity access and a growing EV user base, the country is well-positioned for an electric mobility transition. The elimination of load shedding in major cities and the rapid expansion of distribution lines in rural areas of Eastern Nepal signal economic growth and infrastructure development. As Nepal's energy sector continues to flourish, the demand for electricity is expected to rise. Furthermore, with an improving economy and increasing interest in four-wheelers, Nepal is in a prime position to accelerate the growth of its EV sector.
Several factors play a vital role in uplifting existing EVs system, its business facility throughout the nation. Some of them are mentioned below with respect to developing country like Nepal.
Use of Geographical Information System to purpose select places for construction of Public EV charging stations in the business concentric city areas and along the highways. Making contact with EV owners, public EV drivers, local EV vendors also help to notify locations specific data & information.
Nepal faces challenges such as high dependency on imported fossil fuels, air pollution, and economic constraints. The transition to EVs helps address these issues by reducing fuel import costs, promoting energy security through hydropower utilization, and cutting down carbon emissions. Economically, EV adoption fosters job creation in manufacturing, maintenance, and charging infrastructure while encouraging investment in clean energy sectors.
Nepal’s electricity grid, primarily powered by hydropower, must be upgraded to accommodate the large momentary loads generated by EV charging stations, especially during peak hours. Without a well-planned distribution system, sudden high-power demands from fast-charging stations could strain local transformers, cause voltage fluctuations, and lead to grid instability. To address this, Nepal needs to invest in smart grid technologies, decentralized energy storage solutions, and an expanded transmission network. Integrating renewable energy sources, such as solar and wind, alongside hydropower can help balance demand while ensuring reliable power supply for EV users. Additionally, implementing time-of-use electricity pricing and vehicle-to-grid (V2G) technology could optimize energy distribution and reduce peak load stress.
Development of detailed EV-focused plans and policies to drive up the EV sector with a particular focus on middle-class families. Currently, Nepal government is providing tax benefits to EVs on the basis of battery capacity. These small steps truly enhance the adoption of EVs; thus, ultimately helps the growth of EV charging stations.
In contrast, establishing an EV charging infrastructure involves lower operational costs as Nepal has abundant hydropower resources. Setting up charging stations primarily requires investment in electrical grid upgrades, charging units, and renewable energy integration. While the initial cost of developing widespread charging stations is considerable, it is significantly lower than the long-term expenses of maintaining a petroleum supply chain.