Nepal’s import of electric four-wheelers has dropped sharply in the first two months of the current fiscal year 2025–26, following major disruptions to its key trade routes with China.According to the Department of Customs, Nepal imported just 486 electric four-wheelers between mid-July and mid-September — a steep decline from 1,602 units during the same period last fiscal year.
China, which accounts for over 75 percent of Nepal’s EV imports, saw its shipments fall to 240 units from 1,125 last year. India, the second-largest supplier, also recorded a decline, with exports dropping to 207 units compared to 475 a year ago.The sharp fall comes after the closure of two vital border crossings. The Rasuwagadhi–Kerung checkpoint has remained shut since early July after floods destroyed key infrastructure, including the Nepal–China Friendship Bridge and a dry port. The Tatopani–Nyalam route has also been blocked for a month by landslides, though partial clearance was reported recently.
“The main reason behind the reduced import of electric vehicles from China is the blockade on these two trade routes,” said Samir Shrestha, Chief Marketing Officer at Cimex Inc. Pvt. Ltd, the authorised distributor of BYD cars in Nepal.
To address the disruption, importers have started using the newly opened Mustang route, which became fully operational for international trade on September 15. Nepal’s Central Bank has confirmed that traders can now use this route for imports through letters of credit. Over 200 electric four-wheelers have already been imported via this route since its formal opening.
While demand for Chinese EVs remains robust, Shrestha noted that some customers have cancelled bookings due to concerns over recent Gen-Z protests, which resulted in extensive damage and over 70 fatalities.
In recent years, Nepal’s auto market has seen a strong shift from internal combustion engine (ICE) vehicles toward electric alternatives, with Chinese brands taking the lead. In the last fiscal year alone, Nepal imported 13,578 electric four-wheelers, with China supplying over 75 percent of them.
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