Last year, nearly 70% of electric vehicles imported into Nepal were made in China, far more than its southern neighbor India. India’s long-standing dominance in Nepal’s auto market has gradually disappeared as Chinese car brands surpass Indian brands in popularity and become the largest car sellers in Nepal.

Nepal’s massive shift to electric vehicles is part of the global race to reduce carbon emissions and curb air pollution. A new World Bank report shows that dirty air is having a devastating impact on Nepal’s people and has become one of the leading risk factors for death and disability in the country.

By 2030, the Nepalese government wants 90% of private cars and 60% of public four-wheel passenger vehicles to be electric. This is not just about health or climate, but also about the economy. Electric vehicles are not only fast and quiet, but until recently, they were also cheap to run.

The dominance of electric vehicles in Nepal has changed the strategic landscape of the region, and China’s promotion of electric vehicles has deepened its influence in South Asia.

China has not only driven a sharp rise in electric vehicle sales, but has also invested heavily in Nepal's electric public transportation sector, especially electric buses and charging stations. A few years ago, the slow construction of charging stations hindered the popularity of electric vehicles in Nepal, but now the number of charging stations is growing rapidly as demand for electric vehicles increases.

In 2023, the Zhangmu Port gradually resumed its two-way freight channel function and two-way personnel exchanges, and a large number of Chinese electric vehicles poured into Nepal. According to Nepal Customs statistics, there were 8,938 electric vehicles from China in the 2023-2024 fiscal year alone, accounting for nearly 76% of its total imported vehicles.

Therefore, while Nepalese people buy cost-effective Chinese cars, they also rely on China's infrastructure construction to gradually reduce their dependence on India. Although India borders Nepal and has long dominated Nepal's trade and energy sectors, it has lagged behind in electric vehicle sales in Nepal. Chinese brands such as BYD, MG, and Xiaopeng are making a big push into the Nepali auto market, while Indian manufacturers are struggling to gain a foothold.

Nepal's electric vehicle boom is not just a market shift, but also a window to the future of South Asia. As China actively participates in Nepal's energy transition, India is in a state of panic. In the race for energy diplomacy, it is not enough to be a neighbor, but you must also be competitive. Will India catch up? Or will China continue to drive South Asia's energy revolution? The road ahead is bright and it is closely related to electricity.