Commercial EVs Reshaping Public Transport

When people in Nepal talk about electric vehicles (EVs) today, the image that often comes to mind is of sleek private cars gliding through Kathmandu’s busy streets. Brands like MG, BYD, and Deepal dominate public conversation, symbolizing the country’s shift toward cleaner mobility. Yet, a quieter but significant transformation is underway, the rise of electric vehicles in the commercial sector.

Electric vehicles for public transport, cargo delivery, and utility services are becoming increasingly visible, signaling a broader transformation of Nepal’s mobility landscape. Imports and usage of commercial EVs have risen sharply in recent months, complementing the steady growth of private electric cars. Electric vans and micro vans now connect cities and suburbs, as the once slow-growing commercial EV segment emerges as a key driver of the country’s electric mobility transition.

One of the principal factors behind the shift is the lower operating cost compared to diesel or petrol vehicles. In the country’s passenger transport sector, 11-seater and 14-seater electric microbuses are now commonly used for both intra-city and inter-city routes. Similarly, electric mini-trucks and vans are expanding in the cargo and delivery segments, providing businesses with affordable, environmentally friendly alternatives. A wide variety of commercial EV brands are now available in Nepal. Chinese manufacturers dominate the market, reflecting trends seen in the private segment. Notable brands available in Nepal include King Long, Higer, Zhongtong, Golden Dragon, Foton, DFAC (Dongfeng Automobile), Sunlong, Joylong (Jiangsu Joylong), Wuling, Keaton, Farizon (Geely Farizon), Chery & Wanda, Tata, Kawei, Skywell, RZM, SRM, Kama, Victoria, Nanning and Switch, among others. From India, Tata Motors remains the sole participant in the commercial four-wheeler segment.

Currently, nine major business groups represent 16 commercial EV brands, while six others retail a single brand each. The strongest growth has been observed in the electric microbus category, with both imports and on-road numbers rising significantly. Mini-trucks are following suit, though larger electric buses and trucks have seen slower adoption due to high upfront costs and limited charging infrastructure.

Nepal’s commercial EV journey began modestly six years ago with the introduction of the DFSK Danfe, the country’s first electric public transport vehicle. Today, electric buses operated by Sajha Yatayat and Sundar Yatayat are regular sights on Kathmandu’s streets. Notably, Sundar Yatayat was the first private operator to run public transport services using electric buses. Beyond the capital, cities like Pokhara, Chitwan, Birgunj and Dharan now rely on electric microbuses to provide clean, efficient transport for thousands of passengers daily.

Prakash Subedi, Head of Marketing at MAW Vriddhi, said the company is now preparing to enter the electric bus and truck segment. “We are making preparations to enter this segment,” he said.

MAW Vriddhi currently offers Foton and Sokon models in its commercial EV portfolio. Foton’s offerings include Mountain EV, EV TM1, Mountain Aumark, and Emiler models, while Sokon provides an 11-seater electric van. “More than 1,500 Foton EVs and over 300 Sokon vehicles are already operating in Nepal,” Subedi said.

Similarly, Sipradi Trading has introduced the Tata Ace EV in the commercial segment. “We offer multiple sub-models tailored to diverse cargo needs, including the Ace EV CLB, Ace EV Flat Bed, Ace EV Container, and the Ace EV 1-Ton variant. These are designed for efficient, zero-emission urban logistics and have been well received in cities such as Kathmandu, Pokhara and Itahari,” Suraj Singh, Marketing Manager of Sipradi’s Commercial Vehicle Division, said. He added that Sipradi is planning to expand its commercial EV portfolio further.

CG Motors currently offers two commercial EV brands: CG KYC, featuring 7-seater, 11-seater, and cargo variants, and King Long, offering 14-seater, 15-seater, 16-seater, and 19-seater models. While the company currently has no immediate plans to introduce new models, its existing fleet continues to bolster the presence of commercial EVs across the country.

Industry experts agree that Nepal’s EV transition has been rapid and impressive. Anup Kumar Baral, invitee member at the NADA Automobiles Association of Nepal, told New Business Age that EVs now account for around 75% of total vehicle imports in just four years. “This reflects growing public trust in EVs, especially for public transport,” he said. Baral emphasized that sustained government policy support support, strong after-sales service, and the expansion of reliable charging infrastructure are crucial to maintaining this growth.

Baral further added that the expansion of commercial EVs is essential for Nepal’s economic progress. “Mass transportation through EVs benefits both the economy and the environment,” he said. While electric microbuses and minibuses are becoming more common, Baral stressed the need for larger city buses to meet demand. At present, pickup trucks and microbuses cover long-distance routes of up to 250 kilometers, connecting Kathmandu with major cities such as Pokhara, Chitwan, Bardibas, Janakpur, Dharan, and Kakarbhitta. However, larger 19-seater and 25-seater EV options remain limited.

Environmental experts highlight the urgency of transitioning Nepal’s public transport away from diesel and petrol. “Shifting to electric vehicles is not just an environmental necessity; it is also crucial for reducing the nation’s carbon footprint and improving air quality. Public transport electrification is essential for meeting sustainability goals and addressing urban pollution,” Bhushan Tuladhar, an environmentalist, said.

However, Tuladhar said that the high upfront cost of EVs, particularly larger buses, has remained a major financial challenge. To promote investment in commercial EVs, he suggested targeted government support through loans, soft loans, or grants to reduce initial expenses. He also emphasized the need to expand charging infrastructure. “Unlike private vehicles, which can be charged at home, public transport requires dedicated charging stations at bus parks and other key locations. Efficient management and expansion of this infrastructure are critical to sustaining growth in the commercial EV segment,” he added.

The government has been actively promoting electric mobility through a series of policy initiatives and investment incentives. Its long-term target is ambitious: by 2030, 90% of new private vehicles and 60% of public transport should be electric. Industry observers believe this target is achievable if current growth trends continue and if private sector investment is supported by stable government policies.

Nepal’s energy sector also supports this shift. According to the Energy Development Roadmap, the government aims to generate 28,500 MW of electricity by 2035. Current domestic electricity consumption remains under 2,000 MW, leaving ample capacity to power a rapidly expanding fleet of electric vehicles.

Market analysts say that the rise of commercial EVs has implications far beyond transportation. Electric microbuses and vans are helping to curb urban air pollution, reduce greenhouse gas emissions, and enhance the efficiency of road transport. Meanwhile, the expansion of EV-related industries, such as maintenance services, charging networks, and component supply chains, is creating new business opportunities and jobs within Nepal’s emerging green economy.

Despite impressive progress, several challenges persist. The high cost of larger EVs, inadequate charging infrastructure, and the limited availability of long-range models continue to constrain the expansion of long-distance routes. As the commercial EV fleet grows, ensuring reliable after-sales service and technical training for drivers and mechanics will be increasingly important. Sustained government incentives, such as subsidies, tax breaks, and fiscal support, will be crucial to maintaining momentum in the years ahead.

Still, Nepal’s commercial EV landscape is steadily gaining scale and visibility. From electric buses in Kathmandu to microbuses serving routes between Pokhara, Chitwan, and Dharan, the country’s roads are gradually electrifying. Industry experts agree that continued investment, consistent policy implementation, and robust infrastructure development will determine whether Nepal can meet its ambitious 2030 targets. With more than 16 commercial EV brands currently active and growing adoption across cities and long-distance routes, Nepal’s public transport sector is entering a new era. Electric vehicles are no longer a niche solution; they are becoming integral to the country’s mobility ecosystem. As imports rise, commercial EV fleets expand, and the public grows more comfortable with electric alternatives, Nepal’s journey toward sustainable transportation is picking up speed—quietly, steadily, and visibly on every road.

With more than 16 commercial EV brands now active in the country and growing adoption across both urban and intercity routes, the public transport sector of the country is entering a new era. Electric vehicles are no longer a niche experiment; they are becoming a defining feature of Nepal’s evolving mobility ecosystem. As imports rise, commercial EV fleets expand, and public confidence grows, Nepal’s journey toward sustainable, low-emission transportation is accelerating—quietly, steadily, and unmistakably visible on every road.

This article was first published in the November 2025 edition of New Business Age magazine.