Nepal’s EV imports slump as trade routes with China remain shut

Kathmandu, Sep 23 (IANS) Nepal’s import of electric four-wheelers has slumped in the past two months, largely due to the disruption of two key trade routes with China caused by massive landslides and floods.

According to the Department of Customs, Nepal imported just 486 electric four-wheelers in the first two months of the current fiscal year 2025-26, which began mid-July. This marks a sharp decline from the 1,602 units imported during the same period in the last fiscal.

China, Nepal’s largest supplier of EVs, recorded a drastic fall in exports with only 240 vehicles shipped in the two-month period — down from 1,125 units last year. India, the second-largest supplier, also saw a decline, exporting 207 vehicles compared to 475 units a year ago.

The drop follows the closure of two major border crossings. The Rasuwagadhi-Kerung checkpoint has been shut since early July after floods destroyed the Nepal-China Friendship Bridge, a dry port, and other infrastructure on the Nepal side. Meanwhile, the Tatopani-Nyalam crossing has been blocked for the past month by landslides, though partial clearance was reported on Monday.

“The main reason behind the reduced import of electric vehicles from China is the blockade on these two trade routes,” Samir Shrestha, Chief Marketing Officer at Cimex Inc. Pvt. Ltd, the authorised distributor of BYD cars in Nepal told IANS. “We have started using the newly-opened Mustang route since mid-September to bring in vehicles.”

The Department of Customs recently announced that this border point has remained fully operational starting September 15. Nepal’s Central Bank has also stated in a recent notice that importers from Nepal could use this route to get goods from China through a letter of credit. “This arrangement means that the third trade route between Nepal and China has now been formally opened for international trade,” said Kishor Bartuala, Information Officer at the customs department. “Earlier, this route was being used for cross border trade of goods among the people of the bordering region only,” he revealed.

The customs department said over 200 electric four wheelers were brought to Nepal from China after the opening of the border point for international trade last week.

Shrestha stressed that demand for Chinese EVs remains strong but acknowledged that some customers have cancelled bookings following concerns over vehicle damage during recent Gen-Z protests, which left over 70 people dead and caused widespread destruction.

For years, India-made Internal Combustion Engine (ICE) vehicles dominated Nepal’s auto market. But consumer preference has shifted sharply toward EVs, giving Chinese brands a commanding presence. Last fiscal, Nepal imported 13,578 electric four-wheelers, with 75.2 per cent coming from China and the rest from India, Germany, the US, and other countries.

–IANS

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