Looking up BYD Dolphin price in Nepal? Here's why EV policy shifts, like tax hikes and loan changes, may matter more than the price tag.

The Nepal Government just stood on the global stage and made a bold promise.

As part of its updated climate pledge; NDC 3.0 under the Paris Agreement, the government committed to something extraordinary: an electric vehicle future. Nearly every new car, bike, and bus sold in Nepal by 2035? Electric. Zero tailpipe emissions. Fully powered by clean energy.

And to everyone’s surprise, we didn’t just talk, we actually got to work.

Just last year, Nepal became the second-fastest adopter of EVs in the world, just behind Norway. No flashy press release needed. Just look around you.

Honestly, you don’t need a government report to know EVs are taking over. Try counting the number of electric cars you see on your way to work, college, or the grocery store tomorrow. They’re everywhere. BYD Nepal is no longer some niche brand, it’s become common. MGs are cruising through city streets. Charging stations are showing up at offices

But here’s the part that doesn’t make sense.

If we’re doing so well, why do some government policies feel like they’re working against the very thing we said we’re committed to?

On one hand, we’ve made climate commitments in Paris. On the other, ministries back home are introducing policies that make EVs harder to buy, more expensive to import, and trickier to charge. One department is accelerating; another is quietly tapping the brakes.

In this article, we’ll unpack what’s working, what’s not, and what it’ll take for Nepal’s electric dream to stay on track.

So, What’s the Big Plan?

Let’s rewind a bit.

In May 2025, the Government of Nepal submitted its latest climate roadmap to the UN, called the Nationally Determined Contribution (NDC) 3.0 Think of this as Nepal saying to the world: “Here’s how we’re going to fight climate change.” And one of the biggest promises in that document? Go almost 100% electric on vehicles by 2035.

Here’s what that looks like on paper:

• By 2035, 95% of all new private vehicles sold will be electric (that includes both two-wheelers and four-wheelers).
• At least 90% of new public vehicles (buses, taxis, etc.) will be electric.
• Build 100 kilometers of electric public transit in Kathmandu Valley (think trolleybuses, light rail).
• Develop 300 kilometers of electric railways for cargo and inter-city commuting.

The price tag? A staggering $27.5 billion across all EV-related initiatives.

It sounds like a dream, and to be fair, we’ve already made a solid start.

Look at the numbers again:

• In FY 2080/81 (2023/24), Nepal imported over 13,000 EVs, up from just 250 units in FY 2077/78 (2020/21).
• Major players like BYD Nepal have become status symbols in Kathmandu and Pokhara.
• MG has captured the middle-income market, especially among first-time EV buyers looking for reliability and resale value.
• And as of early 2025, over 500 charging stations are operational across Nepal, with 62 of them operated directly by the Nepal Electricity Authority (NEA).

The government has even made it easier for people to set up chargers at home or at their business. Under the Electricity Distribution Bylaw 2022, NEA will give you a transformer of up to 200 kVA capacity to set up commercial EV charging points. Pretty progressive, right?

So yes, on the surface, Nepal’s electric vehicle journey seems like a runaway success. But the deeper you look, the more you start to notice the cracks.

Because while the NDC sets sky-high goals, some of the government’s recent moves are pulling us in the opposite direction. It’s like flooring the accelerator with one foot while pressing the brakes with the other. (We’ll dive more into this later in the article)

Real Progress: Signs the Vision Could Work

For once, a government plan isn’t just sitting in a PDF file somewhere, it’s actually happening. You don’t have to dig through reports to see it. Just walk through any dealership in Kathmandu, or look around the parking lots at schools, hospitals, and office complexes. Electric vehicles are already here, and they’re not going anywhere.

1. The Market Is Already Moving

Let’s talk numbers.

In fiscal year 2080/81 (2023/24), Nepal imported over 13,000 electric vehicles; a jaw-dropping jump from just 250 EVs three years earlier. That’s not a small uptick, it’s a full-on surge.

And here’s the wild part: more than 70% of new four-wheeler passenger vehicles sold in 2024 were electric. That’s second only to Norway globally. Think about that. Nepal is outperforming countries like the U.S., Germany, and Japan when it comes to EV market share.

A big chunk of this shift is thanks to just two names: BYD Nepal and MG.

If you’ve been in the market for a new car lately, chances are you’ve test-driven a BYD Dolphin or Atto 3. Known for their range, tech features, and comfort, BYD models have quickly become the EV of choice for upper-middle-income families.

At the same time, MG’s ZS EV has carved out a sweet spot among value-conscious buyers. It’s become the go-to model for professionals, ride-share drivers, and even some government fleets looking for an affordable electric upgrade.

So yes, people are choosing electric not because they’re being forced to, but because it just makes sense now.

2. Charging Infrastructure Is Growing, Just Not Fast Enough

Let’s be honest: in the early days, “Where will I charge it?” was the number one reason people hesitated to buy EVs.

But that’s changing.

As of early 2025, Nepal has over 500 EV charging stations across the country. Out of those, 62 are directly operated by the Nepal Electricity Authority (NEA).

These aren’t just stuck in Kathmandu either. You’ll now find chargers along highways, in city centers, near hotels, and even in a few rural towns.

What’s more, NEA’s Electricity Distribution Bylaw 2022 allows home and business users to install their own charging points. They’ll even supply you with a dedicated transformer of up to 200 kVA if you’re running a commercial station.

That’s serious infrastructure progress, especially for a country that had zero public EV chargers just a few years ago.

3. Public and Private Sectors Are Showing Up

This isn’t just a consumer movement. The public sector is getting in on it too.

• Sajha Yatayat now runs 40 electric buses and has set up 21 charging stations to support its growing green fleet.
• Sundar Yatayat, one of the early adopters, has been quietly operating electric buses for years, long before it was trendy.

There’s also growing interest from schools, hospitals, and logistics companies exploring electric vans, e-bikes, and utility vehicles. Some municipalities are even piloting electric garbage trucks and e-rickshaws in narrow alleyways.

And the best part? All of this is backed by formal government policy.

By including EV targets directly in Nepal’s NDC 3.0, the Ministry of Forests and Environment (MoFE) has made it part of our international climate commitment. That means we’re accountable; not just to ourselves, but to the world.

In short, we’re not starting from scratch. We’ve already shifted gears.

Nepalis are ready. The brands are here. The market is listening. The policy groundwork exists.

But if we don’t keep the momentum going; or worse, start pulling in the opposite direction, all of this progress could stall.

And unfortunately, that’s exactly what’s starting to happen.

Contradictions: Policies That Undercut the Mission

You’d think that with Nepal making this much progress, the government would be doing everything it can to keep the EV momentum alive.

But oddly enough, that’s not what’s happening.

In fact, some of the very institutions that helped spark the electric revolution are now making decisions that could slow it down, or even reverse it.

Let’s break down where things are going sideways.

1. EV Financing Just Got Harder (While Fossil Fuels Got a Boost)

In May 2025, something unexpected happened.

Nepal Rastra Bank (NRB), the country’s central bank, announced a change to auto loan rules. If you’re buying a petrol or diesel vehicle, you can now borrow up to 60% of the vehicle’s price, up from the previous 50%.

But if you want to buy an electric vehicle?

Your loan coverage just dropped from 80% to 60%. That means you now need to put down a 40% cash deposit for an EV; double what it used to be.

This decision has confused pretty much everyone; from car dealers to climate experts.

Let’s recap:

• Petrol and diesel cars: Easier to buy now
• Electric vehicles: Harder to afford

At a time when the government is aiming for 95% electric vehicles by 2035, this move sends the opposite message. Instead of encouraging the switch to clean energy, it puts the brakes on just as things were taking off.

More on that here!

2. The EV Tax Rollercoaster: From Affordable to Confusing

It’s not just the loans. Taxes on EVs have started creeping back up too.

Until recently, EVs were taxed at just 23%, making them a smart long-term choice for buyers. But now, we’ve entered the age of tiered taxation.

Here's what that looks like today:

• EVs under 50 kW: 10% customs duty
• 50–100 kW: 15%
• 100–150 kW: 30%
• Above 300 kW: Up to 60%

So, if you were dreaming of that sleek, high-performance BYD or MG model? You’re now paying a lot more in import duties, even though these vehicles are the cleanest options available.

Why the change? The government cites revenue loss as a major concern. EV imports don’t bring in the same taxes and fuel levies that ICE (internal combustion engine) vehicles do.

But here’s the problem: You can’t claim to promote electric mobility while simultaneously taxing it into unreachability.

That’s not policy; it’s mixed signals.

And there’s talks of the government potentially increasing EV taxes further for FY 2082/83! Want to explore why this has led to thousands of EVs being piled up at the border? Full breakdown here!

3. Big Targets, Small Budgets, and Missing Pieces

And then there’s the infrastructure and planning side of things.

Sure, Nepal’s NDC talks about 100 km of electric public transit and 300 km of electric railways by 2035. But so far, there are:

• No confirmed project budgets
• No construction start dates
• No feasibility studies publicly available

It’s all ambition and no roadmap.

What’s also missing?

• A battery recycling and disposal policy (critical as thousands of EVs will need replacements over the next decade)
• Skilled workforce training for EV maintenance and safety
• Dedicated EV service centers, especially outside the Kathmandu Valley

Let’s be clear: we can’t have 95% of our vehicles running on batteries if we don’t know what to do with the batteries later.

And we can’t build public trust in EVs if service quality and availability is patchy, or if users are stranded mid-journey due to poorly maintained charging infrastructure.

All of this leads to a sobering realization:

We’re building the future, but we’re also quietly pulling the plug.

Unless these contradictions are resolved; and fast, Nepal risks turning a global climate success story into a case of “what could have been.”

Risks of Going 90% Electric: A Critical Reality Check

Let’s imagine for a moment that everything goes right.

People switch to electric vehicles. BYD Nepal and MG keep breaking sales records. Charging stations are everywhere. Public buses hum silently through the city.

Sounds perfect, right?

Well, not quite.

Even if Nepal hits its target of 90–95% electric vehicle adoption, there are still some very real risks we need to talk about. Because electrifying a country’s entire vehicle fleet isn’t just about swapping petrol for batteries, it’s about changing an entire ecosystem.

1. Will the Grid Be Ready?

Here’s a question we don’t ask enough: Where is all the electricity going to come from?

Yes, Nepal is rich in hydropower. We generate over 2,800 MW of electricity today, and more projects are coming online every year. But most of that power is concentrated in specific regions, and the national grid still has issues with:

• Power losses during transmission
• Load balancing during peak hours
• Blackouts and voltage drops in rural areas

If suddenly every second home in Kathmandu plugs in an EV charger at 6 PM, can our grid handle it?

Without smart planning, energy storage, and distribution upgrades, a mass shift to EVs could actually strain the system we’re trying to strengthen.

So yes, we have power; but we also need grid resilience to make this all work.

2. What About Batteries, and Who Owns Them?

Here’s something we don’t hear much about in all the excitement:

Every EV battery sold in Nepal is imported. And most of them come from one country: China.

Now, this isn’t necessarily a bad thing; Chinese EVs are reliable and affordable. But it does create some serious risks:

• Import dependency on a single country
• Exposure to currency fluctuations
• Geopolitical instability affecting trade

And there’s another big issue: battery waste.

EV batteries typically last 8–10 years. What happens when thousands of batteries need to be replaced in 2032 or 2035? Right now, Nepal doesn’t have:

• A battery recycling policy
• Battery waste handling regulations
• Infrastructure to collect, store, or repurpose old batteries

That’s an environmental disaster just waiting to happen.

3. EVs Won’t Fix Kathmandu Traffic

Let’s be honest: electric cars still take up space.

If every petrol or diesel car is replaced by an electric one, we’re still stuck in the same traffic jams, just with less noise and cleaner air.

Kathmandu’s roads are already overcrowded. And unless we prioritize:

• Electric public transport
• Non-motorized infrastructure (like bike lanes and footpaths)
• Smarter city planning, we’re just swapping problems, not solving them.

EVs are great, but they’re not a replacement for buses, metros, or better sidewalks.

d. What About the Rest of the Country?

So far, most EV sales and charging infrastructure are focused in the Kathmandu Valley and major cities. Rural areas, where fuel is expensive and transport is essential, are being left behind.

Add to that:

• A lack of incentives for electric two-wheelers, which are actually more common than cars in Nepal
• Minimal support for electric freight vehicles, which are crucial for logistics and supply chains

And we start to see a pattern.

There’s a risk that Nepal’s EV revolution becomes an urban, elite movement, while the rest of the country is left with fuel shortages and outdated infrastructure.

In short: Even if we hit the 90% EV target, it won’t mean much unless we think strategically.

We need to prepare the grid. Manage the battery lifecycle. Solve traffic congestion. Make it fair for rural users. And ensure the benefits are shared by all, not just the few.

Mixed Signals: Real Commitment or Bureaucratic Theatre?

So far, we’ve seen both sides of Nepal’s electric vehicle journey.

On one hand, there’s no denying the impressive progress; thousands of EVs on the road, massive public interest, BYD Nepal and MG becoming household names, and bold commitments under international climate agreements.

But on the other hand, we’re seeing policy moves that feel totally out of sync with that ambition such as loan restrictions, rising taxes, and missing infrastructure.

Which raises the big question: Are we really committed to this? Or are we just putting on a show?

Let’s break it down.

Signs We’re Serious

Despite the confusion, there are a few solid indicators that Nepal is genuinely trying to lead in electric mobility.

1. The NDC Isn’t Just Talk

Our EV goals are part of our official Nationally Determined Contribution (NDC) 3.0, filed with the UN under the Paris Agreement. That means:

• We’ve made a public, internationally binding promise
• We’re expected to report on our progress
• We’re eligible for global climate finance and technical support

That’s not the kind of thing you back out of quietly.

2. The Market Shift Is Real

We’re not just dreaming big, the market has responded. With over 13,000 EV imports in a single year, Nepal’s shift is happening faster than almost anywhere else. People clearly want this change.

3. Public-Private Collaboration Is Happening

Projects like Sajha Yatayat’s 40 electric buses and NEA’s 62 public charging stations show real public investment. At the same time, private sector players like BYD Nepal and MG are pouring in resources, offering competitive products, and even helping build charging networks.

This kind of cooperation doesn’t happen unless there’s real momentum.

Signs It’s Just Political Optics

And yet, for every step forward, there’s something pulling us back.

1. The Loan Policy Flip-Flop

Reducing EV financing from 80% to 60%, while making petrol and diesel vehicles easier to buy, is a move that directly contradicts everything in the NDC.

It’s not just a mixed signal, it’s a flashing red light.

2. Tax Hikes That Hurt Progress

The new tiered tax system for EVs makes high-performance models far more expensive, and even discourages mid-range buyers who were just starting to feel EVs were within reach.

You can’t promote electric mobility while making it harder to afford.

3. Where’s the Execution Plan?

We have bold goals like 300 km of electric rail and 100 km of electric public transport in Kathmandu, but we still don’t have:

• A clear timeline
• Project-level funding
• Regulatory clarity on battery recycling, EV safety standards, or charging interoperability

Without these pieces, the strategy looks more like a PowerPoint pitch than a national plan.

4. Ministries Not Talking to Each Other?

There’s a strong sense that one arm of the government is working hard, while the others are either unaware or working in a different direction.

MoFE sets climate goals. NRB sets financing rules. MoF sets tax policy. And somehow, they’re all moving at different speeds, with no central coordination.

If we’re serious about going electric, we need to act like one team.

So, What’s the Verdict?

Honestly? It’s a bit of both.

There’s real commitment from citizens, businesses, and some parts of government. But there’s also confusion, inconsistency, and missed opportunities.

Nepal isn’t faking it, but we’re also not firing on all cylinders.

And if we don’t resolve these mixed signals soon, we risk stalling this momentum and losing public trust in what could’ve been one of Nepal’s most inspiring development stories.

What Needs to Be Fixed Urgently

Nepal’s EV journey has started strong. The cars are here. The people are interested. The market is responding. But keeping this momentum alive and scaling it nationwide, will take more than optimism and sales numbers.

If Nepal wants to turn its bold vision into a lasting transformation, it needs more coordination, smarter governance, and long-term investments that go beyond targets and headlines.

1. Get Everyone on the Same Page

Right now, it feels like different government institutions are pulling in different directions. The Ministry of Forests and Environment is pushing for electric adoption under Nepal’s international climate commitments. The Nepal Rastra Bank is adjusting loan rules that make EVs harder to afford. The Ministry of Finance is tweaking import taxes. Meanwhile, the Nepal Electricity Authority is building chargers but often without a coordinated national plan.

This lack of alignment isn’t just inefficient, it’s risky. When ministries don’t talk to each other, policies contradict one another. What we need now is a dedicated taskforce or national coordination body; something that brings everyone to the same table. It should track EV progress, resolve inter-agency conflicts, and present one unified strategy to the public and to international partners.

Because the EV transition isn’t just an environmental issue. It’s a financial issue, a transportation issue, a city planning issue. And unless everyone’s working together, we’ll stay stuck in first gear.

2. Invest in the Foundations, Not Just the Flashy Stuff

Nepal has set world-leading EV targets. But achieving them will depend on something much less glamorous: capital investment.

According to the Ministry of Finance, only 9.8% of total government spending in the first eight months of FY 2081/82 went toward capital expenditure. The rest went to salaries, administration, and routine operations. That’s a serious mismatch for a country promising electric highways and rail systems.

Electric vehicles need charging stations, power infrastructure, battery recycling systems, public transport upgrades, and maintenance hubs. These aren’t things you can deliver with short-term budgets or leftover funds. They need sustained, strategic investment.

Without proper roads, reliable power distribution, and a national EV backbone, even the most aggressive sales targets will begin to collapse under their own weight.

3. Build a National Infrastructure Blueprint

Nepal has more than 500 EV charging stations now, with 62 run by NEA. That’s a great start, but it’s still mostly concentrated in cities, and there’s no long-term roadmap to scale.

We need a national EV infrastructure blueprint. Not just to install more chargers, but to figure out where they should go, how they’ll be powered, who will maintain them, and what standards they should follow. That blueprint should be integrated with housing policies, municipal planning, highway development, and even power grid design.

Without a clear national plan, we’ll end up with a patchwork of charging points that work well in Kathmandu but leave the rest of the country behind.

4. Think Long-Term About Batteries

Electric vehicles might be clean at the tailpipe, but their batteries won’t last forever. Most will need to be replaced within 8 to 10 years. And when that happens, Nepal could be looking at a flood of hazardous electronic waste if we’re not prepared.

As of now, there’s no national policy on battery recycling, safe disposal, or second-life use in Nepal. And since every battery is currently imported, we’re not just creating an environmental risk, we’re also exposing ourselves to supply chain and trade vulnerabilities down the road.

If Nepal wants to be a serious player in electric mobility, it needs to treat batteries not as a one-time product, but as part of a circular system. That means developing a clear battery policy, exploring small-scale recycling pilots, and assigning responsibility to importers and dealers for end-of-life battery management.

5. Make the Transition Inclusive

One of the most overlooked risks in Nepal’s EV story is the growing gap between who can afford to switch, and who can’t.

Right now, EV adoption is largely an urban story. It’s centered in Kathmandu, where infrastructure is improving and incomes are relatively higher. But outside the Valley, many municipalities still lack charging stations, and there are few incentives targeted at electric two-wheelers, freight vehicles, or public buses.

If the EV transition ends up benefiting only private car owners in the city, we’ll have missed the point entirely. What’s needed is a clear focus on rural electrification, affordable options for lower-income families, and a bigger push to electrify public and commercial transport—not just personal vehicles.

Nepal’s EV revolution isn’t about selling more cars, it’s about designing a better system. That means better coordination across ministries, smarter investment in the long run, and making sure the benefits of clean transport reach everyone, not just a few.

We’ve already proven we can lead. Now it’s time to show we can follow through.

Final Thoughts

Nepal has already done what many thought impossible.

In just a few years, we went from being an oil-dependent country with almost no electric vehicles to becoming one of the world’s fastest-growing EV markets. Names like BYD Nepal and MG are now as common in car conversations as Toyota and Hyundai. The idea of going electric isn’t radical anymore, it’s real. It’s happening.

But the real question now isn’t whether EVs are the future. It’s whether we’re building that future in a way that lasts.

Because bold targets alone won’t get us there. Nor will high sales numbers or a few dozen charging stations. What will? Consistent policies. Smarter coordination. Long-term investment. And the courage to admit that we’re not just chasing electric cars, we’re reimagining how a country moves.

The next two years are critical.

This is when infrastructure either expands or falls behind. When ministries either align or continue to contradict each other. When public trust in clean mobility is either strengthened, or quietly slips away.

Nepal has an opportunity that few countries do: to show that even with limited resources, a small nation can lead the clean transport revolution. Not with slogans, but with strategy.

The world is watching. And more importantly, so are millions of Nepalis

The road ahead is electric. But it’s up to us to make sure it’s also coherent, inclusive, and built to last.

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• NRB’s New Loan Policy: Why Buying an EV Just Got Harder in Nepal
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