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Thursday, September 25, 2025

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

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Nepal’s electric vehicle imports have taken a hit in recent months, thanks to landslides and floods blocking key trade routes with China. In the first two months of the 2025-26 fiscal year—starting mid-July— the country brought in just 486 electric four-wheelers, a big drop from the 1,602 units imported during the same time last year, according to the Department of Customs.

China, Nepal’s top source for these EVs, shipped only 240 vehicles in that period, compared to a whopping 1,125 the year before. India, the next biggest supplier, also saw numbers fall, exporting 207 vehicles instead of 475 from last year.

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The main culprit? Two major border crossings have been closed off. Floods wrecked the Nepal-China Friendship Bridge and other facilities at the Rasuwagadhi-Kerung checkpoint back in early July, shutting it down completely. Over at Tatopani-Nyalam, landslides blocked the route for the past month, though officials cleared some debris on Monday.

“This blockade on the two main trade routes is why electric vehicle imports from China have slowed so much,” said Samir Shrestha, Chief Marketing Officer at Cimex Inc. Pvt. Ltd., which handles BYD cars in Nepal. The company has switched to the newly opened Mustang route since mid-September to keep vehicles rolling in.

That Mustang border point went fully operational for international trade on September 15, as announced by the Department of Customs. Nepal’s Central Bank backed it up, allowing importers to use letters of credit for goods from China. “This makes the third trade route between Nepal and China official for global business,” explained Kishor Bartuala, an information officer at the customs department. “Before, locals in the border areas used it just for everyday cross-border trade.”

Already, more than 200 electric four-wheelers have crossed into Nepal from China via this route since it opened up last week, the customs department reports.

Demand for Chinese EVs in Nepal is still buzzing, Shrestha added, but some buyers have backed out of orders. They’re worried about potential damage from the recent Gen-Z protests, which killed over 70 people and caused chaos across the country.

For a long time, cars with traditional internal combustion engines from India ruled Nepal’s roads. But tastes are changing fast, with electric vehicles gaining ground—especially from Chinese brands. In the last fiscal year, Nepal imported 13,578 electric four-wheelers total, and China supplied 75.2% of them. The rest came from India, Germany, the US, and elsewhere.

As Nepal works to reopen these vital China-Nepal trade routes, EV fans are hoping for a quicker bounce-back in supplies.


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