In July and August 2025, Nepal’s EV revolution got featured in The New York Times (NYT) and Bloomberg. I also linked the NYT article on my post on right to clean environment citing it as a silver lining in environment protection. The electric vehicle (EV) boom looks promising, but there are a few questions that still linger: Will EVs replace petroleum vehicles? Will the use of electricity reduce petroleum import? Will EVs be sustainable? Although I am an employee at a corporation that imports petroleum, and EV growth is a growing concern here, these are my personal opinions and I will try to be as objective as possible.

Problems with Nepal’s EV Revolution

Import-based revolution

The number of EVs in Nepal has increased significantly, the “revolution” is not home-grown. Vehicles have always been imported here, whether they are petroleum-fueled or electric.

We rely heavily on our southern neighbour, India for petrol and diesel vehicles, with competition on two-wheelers and light four-wheelers from Japanese, Korean, and European companies. The EV market has increased the trade northwards as China innovates and produces more EVs at cheaper price.

But the truth is, we are still importing. Our import-based economy is worsening our trade deficit with both our neighbours, and in absence of research, development, and production in we are surely going to face problems in upscaling Nepal’s EV revolution.

Inadequate Electricity

Although Nepal the installed capacity of hydropower has increased in the recent years and Nepal has also increased, the demand is also increasing. We are also importing electricity from India in seasons when our production is low. We are facing deficit in the electricity trade as well. With increasing domestic demand and consumption, amplifed by the EV boom, more hydropower projects should be completed and operated.

EVs are not enough to reduce petroleum import

According to a news on Republica based on data from the Customs Department, EVs haven’t been able to reduce petroleum import. Although cars and scooters are becoming increasingly electric, motorcycles are still petrol-fueled. Similarly, heavy vehicles like buses, trucks, and tankers are mostly powered by diesel. Moreover, agricultural equipment like tractors, tillers, threshers, and mills usually on diesel. Whereas China has already produced mining electric trucks, Nepal’s EV revolution is yet to reach penetrate the heavy vehicle market.

EV subsidies may not be sustainable

Nepal has subsidised the import of EV over vehicles that consume fossil fuels. This has an impact on the customs taxes the country obtains. Debates on favour and against the subsidies have surfaced regularly. If Nepal waives off the concessions, the sales of EV could even decline.

Lack of policies on recycle and disposal of batteries

Nepal lacks policies regarding battery recycle and disposal. This has led to confusion regarding what will happen when the batteries of EVs die. The policies need to address the concerns of the vehicle owners as well as the environmental issues brought about by EV batteries.

Clean environment at consumer’s end

One of the biggest issues with EV worldwide is that the clean environment and zero emission is only possible at the consumer’s end. Manufacturing of vehicles still exploits natural resources. Moreover, batteries and chips used in EVs use rare elements, whose mining is exploitative and hazardous.

Cyber security

With EVs becoming increasingly used, their navigation and control systems can be at risk of being intervened by hackers. Nepal needs to upgrade its policies and infrastructures to tackle the challenges posed by data breach and other cybercrimes involving EVs.

Positives of Nepal’s EV Revolution

Energy Independence

After Nepal suffered an undeclared economic blockade from India in 2015, there is a growing concern to at least curb the use of petroleum products, which are exclusively imported from the southern neighbour. Although that goal hasn’t been achieved yet, Nepal is moving towards energy independence. Use of EVs consumes the home-produced hydroelectricity, circulating at least some money within the country.

Cleaner environment

Since Nepal is basically a consumer of EVs, pollution is minimized. EV boom in Nepal is expected to reduce smog which has been quite hazardous in cities like Kathmandu. Nepal should, however, raise voice against exploitation and environmental pollution caused by mining for rare earth metals and other minerals.

Champion for climate change policies

Nepal, as a developing Himalayan nation, has to pay heavy price for ill effects of climate change despite contributing very little to it. Nepal’s EV revolution is a statement against climate injustice and a strong advocacy for reducing the use of fossil fuel and net zero emission. The title of Bloomberg’s article itself shows appreciation of Nepal’s shift towards EV compared to majority of the West.

For smooth running of EVs, Nepal needs charging stations at regular intervals in highways. NEA has built over 60 chargimg stations on its own and has also allowed private charging stations for promoting EV use.

EVs are also suitable for smooth roads in proper urban settings. Such a requirement can help improve roads and carry on proper urbanization plans in all the parts of the country. Linking EV revolution with infrastructures can lead to sustainable developement.

The Way Forward

Nepal’s EV revolution is promising for energy independence and promoting climate initiatives. It may also lead to better infrastructures. However, the import-heavy trade is unsustainable. If we can promote development and production of our own EVs suitable to our needs, we can be more sustainable. The government should also come up with policies immediately for proper disposal and recycling of batteries for EVs.

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