Nepal Urged to Produce EVs Locally, Legal Barriers to Be Addressed

Kathmandu – Krishna Bahadur Raut, Secretary at the Ministry of Industry, Commerce, and Supplies, has urged the private sector to produce electric vehicles (EVs) locally. Speaking at the ‘Driving the Future: EV Adoption in Nepal’ panel during the NADA Auto Show, he emphasized that local production would create jobs and reduce the country’s trade deficit.

“Currently, Nepal imports over NPR 18 kharba while exporting only around NPR 3 kharba, resulting in a trade deficit of NPR 15.27 arba,” Raut said. “If we can produce EVs domestically, we can cut fuel consumption and reduce the deficit.”

Raut added that a new EV law is being drafted to address existing challenges, such as registration and vehicle testing issues, and the government plans to involve provincial and local authorities through a PPP model.

Diesel Alternatives Needed Too

Dr. Biraj Singh Thapa, Assistant Professor at Kathmandu University, highlighted that while EVs are suitable for short-distance and light vehicles, long-distance and heavy-load vehicles still rely on diesel. He suggested exploring hydrogen as a potential alternative.

Government and Banks Support EVs

Officials said the government is facilitating EV adoption through policies and upcoming regulations. Narhari Tiwari, Director at the Department of Transport Management, confirmed that new procedures will be issued this month.

Surendra Raj Regmi, Vice President of Nepal Bankers’ Association, noted that banks are increasingly investing in EVs, with some creating dedicated units for EV loans.

Policy Uncertainty Hinders Businesses

Kapil Shiwakoti, NADA committee member, said unclear policies continue to challenge EV businesses, affecting registration and testing processes.