Summary:
Nepal has rapidly adopted electric vehicles (E.V.s), with 76% of passenger vehicles sold in the past year being electric, up from nearly zero five years ago. This shift is driven by government policies that lower import duties on E.V.s (40% vs. 180% for gas cars), subsidies, abundant hydropower, and support from China’s E.V. industry. Nepal built 62 charging stations and encouraged private investment in more chargers by offering low electricity rates and tariff benefits.

This transition helps reduce pollution in Kathmandu’s congested streets and decreases reliance on imported fossil fuels, especially after a 2015 border dispute reduced petroleum imports. Despite successes, challenges remain: the government is increasing E.V. tariffs and loan down-payment requirements, there is no battery recycling plan, and public transport electrification is still limited.

Electric buses have been introduced, with around 41 currently running, but about 800 are needed for effective public transit. China has offered to donate 100 electric buses. The government and local leaders aim to expand electric public transport to tackle pollution and traffic issues further.

The overall electric vehicle push in Nepal is seen as a positive move toward cleaner transport, but sustaining it requires stable policies and infrastructure investment.

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