Focus should be on encouraging behavioural shift to EVs
Summary
Nepal has the second-highest adoption rate of four-wheel electric vehicles among new vehicles, driven by preferential tax policies and financing, but challenges remain in sustaining this trend and addressing battery waste management.
Key Points
- Nepal ranks second globally in adoption rate of four-wheel electric vehicles as a share of new vehicle registrations.
- The EV boom is driven mainly by preferential customs duty and favorable financing terms compared to Internal Combustion Engine vehicles.
- Despite high four-wheel EV adoption, two-wheelers dominate the vehicle market and currently lag in electrification.
- Long-term challenges include battery replacement, recycling, and the need for policy to promote behavioral changes fostering sustainable EV adoption.
