In 2024, Nepal witnessed a surge in Chinese electric vehicle (EV) brands with over a dozen new players launching their models. At the NADA Auto Show 2024, 90% of the showcased vehicles were electric, highlighting the dominance of Chinese EV brands such as BYD, MG, Deepal, Neta, Nammi, Seres and Omoda. Indian automaker Tata was the sole notable competitor in this landscape. However, the dynamics are set to shift in 2025 as Indian EV manufacturers are preparing to make a strong entry in the Nepali market.

The EV market in Nepal has long been dominated by Chinese brands. Data from the Department of Customs (DoC) shows that Nepal imported 11,701 electric cars, jeeps and vans worth Rs 29.48 billion in the fiscal year 2023/24. Among these, 72% (8,065 units) were imported from China with a total value of Rs 22.12 billion. In contrast, India exported 3,377 EVs to Nepal worth Rs 6.38 billion, accounting for 28.86% of total imports. This trend persisted in the first half of 2024/25 during which 4,205 of the 5,480 imported EVs originated from China, while India supplied 1,280 units.

However, with major Indian players like Maruti Suzuki, Mahindra & Mahindra, Tata Motors and Hyundai India preparing to introduce new electric models, 2025 could mark a turning point for Indian EVs in Nepal. The Nepali market is anticipated to see the launch of at least four to six new India-made EVs in the first half of the year. These new offerings are expected to intensify competition in the EV segment. But the critical question remains: Can Indian EVs effectively compete with the established dominance of Chinese brands?

The first Indian EV to hit Nepali roads in 2025 will be Hyundai’s Creta EV. While Hyundai already offers the Kona and Ioniq 5 EVs in Nepal, the Creta EV will be its first India-manufactured electric vehicle. Unveiled at the Bharat Mobility Global Expo 2025 in New Delhi, the Creta EV is expected to launch in Nepal by mid-February.

Laxmi Intercontinental Pvt Ltd, Hyundai’s authorized distributor in Nepal, is optimistic about the Creta EV’s prospects. The distributor plans to leverage the popularity of the internal combustion engine (ICE) version of the Creta to gain traction in the mid-size SUV segment.

The Creta EV comes with two battery options: a 51.4 kWh long-range battery providing a range of 473 km per charge and a 42 kWh battery with a range of 390 km. This strategic diversification in battery options is expected to cater to a broader range of Nepali consumers.

After years of missing out on Nepal’s burgeoning EV market, CG Moto Corp is finally set to introduce the Maruti Suzuki eVITARA in 2025. The eVITARA is an SUV built on the new HEARTECT-e platform, specifically designed for electric vehicles. Its highly efficient battery options enable a range of over 500 km on a single charge, according to Maruti Suzuki.

The eVITARA also boasts advanced features such as Level 2 Advanced Driver Assistance Systems (ADAS), an integrated display system and the next-generation Suzuki Connect. With these premium offerings, Maruti Suzuki aims to establish a strong foothold in Nepal’s EV market.

Mahindra, which played an important role in introducing EVs to Nepal during the 2010s, is making a comeback. In 2024, Mahindra re-entered the EV scene with the all-electric XUV 400 in the Nepali market. Later that year, the company introduced two additional EV models, the BE 6 and XEV 9e, which are expected to launch in Nepal later this year. Agni Incorporated, Mahindra’s authorized distributor in Nepal, has yet to announce the official launch dates for these models. However, their arrival is expected to bolster Mahindra’s presence in the market and challenge the dominance of Chinese brands.

Tata Motors, once the leader in Nepal’s EV segment, is also gearing up to reclaim its position. The flagship Tata Curvv is set to make its debut in Nepal in 2025. Sipradi Trading, the authorized distributor for Tata vehicles in Nepal, plans to expand its electric vehicle lineup with this new model.

Despite holding the top spot in the EV segment in 2022 and 2023, Tata lost its lead to China’s BYD in 2024. BYD’s sales outpaced Tata’s by 22%, with 3,530 units sold during the year compared to Tata’s 2,750 units. Tata’s EV lineup in Nepal includes the Tiago, Express T, Nexon and Punch. The addition of the Curvv is expected to strengthen Tata’s competitive edge.

While Indian EV brands are preparing to make a strong presence in the Nepali market, it would be difficult to challenge the Chinese brands that have firmly established themselves in the market, offering a wide range of models at competitive prices. Indian manufacturers will need to focus on affordability, range and after-sales service to woo Nepali consumers. Additionally, consumer perception and brand loyalty could pose hurdles for Indian EVs attempting to disrupt the status quo.

As 2025 unfolds, the battle for dominance in Nepal’s EV market is set to intensify. The introduction of new Indian models will undoubtedly make the sector more competitive, but whether these efforts will be enough to challenge Chinese supremacy remains to be seen.

(This report was originally published in  February 2025  issue of New Business Age Magazine.)