This country quietly became an electric haven with EVs now having 76% market shares
While most headlines focus on EV adoption in the US, Europe, and China, Nepal is quietly outpacing almost every country on Earth when it comes to electrifying its roads.
In the last year alone, 76% of new passenger vehicles and 50% of light commercial vehicles sold in Nepal were electric compared to a 20% global average.
How did we all miss Nepal’s electrification story?
TL;DR: The New York Times has released a fascinating new report that tells the little-known story of Nepal’s electrification. The country’s aggressive EV shift is the result of a perfect storm: abundant hydropower, smart import tax policy, growing infrastructure, and a wave of affordable EVs from China.
Cars powered by rivers, not oil
Nepal’s power grid is fed by rivers flowing from the Himalayas, making electricity clean and locally sourced. A 2015 fuel crisis with India prompted a national pivot to hydropower, helping to end the rolling blackouts that plagued the country for years. Now, electricity is abundant—and it makes more economic sense to use it for transport than to keep importing petroleum.
There are many countries in somewhat similar situations, but most of them have not embraced electric transport as much as Nepal.
To accelerate the transition, the government slashed import taxes for EVs to as low as 40% (vs. 180% for ICE vehicles). The result? A Hyundai electric SUV now costs less than its gas-powered counterpart.
Charging infrastructure is growing fast too: 62 public stations installed by the government, with hundreds more by businesses and homes. At current electricity rates, charging an EV costs roughly 15x less than refueling a gas car.
China dominates EV surge as dealers pivot
Chinese automakers like BYD are rapidly taking over the market. Originally a solar equipment distributor, Yamuna Shrestha became Nepal’s exclusive BYD dealer and now operates 18 dealerships. She expects to sell 4,000 vehicles in 2025.
“Consumers are getting Tesla-tier vehicles at half the price,” said one local Suzuki dealer, noting that Indian brands can’t keep up on cost or features. Dozens of Chinese brands are now competing in Nepal’s EV market, pushing the transition faster.
The electric transition created a lot of opportunities in the country’s relatively small automotive.
EVs work for everyday drivers in Nepal
EVs are already paying off for everyday Nepalese. Jit Bahadur Shahi, a retired police officer, purchased an electric minibus for approximately $33,000. Just 10 round trips a month between Kathmandu and his hometown cover the loan payments. He expects to own it outright in four years.
Still, challenges remain: charging infrastructure isn’t everywhere, but the government is investing in expansions to make sure the infrastructure grows with the rapidly growing EV fleet.
Political instability could slow things down.
While a success story, especially for a developing country, Nepal could find it difficult to reach near 100% EV sales in Norway amid some political instability.
Despite the momentum, policy backsliding could derail progress. Nepal has had three prime ministers in five years. This year, tariffs are creeping back up. Meanwhile, there’s no national plan yet for battery recycling or vehicle safety standards.
“If incentives disappear, the market could shift back to gas,” warned Rajan Babu Shrestha, Nepal’s Tata Motors distributor.
Public transit is the next step
While private EV adoption is booming, most of Nepal’s population relies on buses and motorbikes, which remain mostly fossil-fueled.
State-backed bus operator Sajha Yatayat runs 41 electric buses and plans to expand. China recently offered to donate 100 more, helping to build a clean transit backbone. However, experts say that at least 800 electric buses are needed to truly shift mobility in the Kathmandu Valley.
Scooters and two-wheelers also need to go electric, but adoption there lags behind neighboring India.
“We are trying to reduce fossil fuel vehicles in my town,” said Lalitpur mayor Chiri Babu Maharjan in the NYT story. “This is very difficult, but we must do something.”
Electrek’s Take
Nepal’s EV story is unique, but there are also many similarities with other markets, making it potentially replicable. By tapping into its clean energy, embracing Chinese EV supply, and creating the right incentives, the country has leapfrogged most markets in EV adoption.
Again, I understand that it is a fairly small market, but it’s still impressive that a few Chinese automakers can change the entire auto market of a country in less than 5 years.
From no EVs to almost only EVs in about 5 years.
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Honda is set to pull the covers off a new electric motorcycle on September 2, teasing the upcoming reveal with camouflaged images on the brand’s social media. The upcoming unveiling is sparking speculation that this could be one of the first models in Honda’s long-promised push into more powerful motorcycle electrification.
The teasers show the shape of a motorcycle with fairly conventional proportions, including a two-up seat, standard riding posture, single-sided rear swingarm, and no visible foot-forward scooter ergonomics, which suggests this will be an honest-to-goodness motorcycle rather than an e-scooter. The bodywork looks sporty but subdued, lacking the aggressive fairings of a supersport, which may point to a street-oriented commuter or naked bike. In fact, it looks a lot like the EV Fun Concept unveiled by Honda last October in Milan, seen above.
Street commuter bikes are common among electric motorcycle makers. They capitalize on the strengths of electric drivetrains without requiring the long range associated with touring motorcycles. It’s a move we’ve seen play out time and again among brands like Can-Am, Kawasaki, Ryvid, and others who have produced smaller, urban-focused electric motorcycles in the last few years.
This aligns with Honda’s previously stated plans. The company announced years ago that it would introduce at least 10 electric motorcycle models by 2025, ranging from commuter vehicles to high-performance machines. So far, its progress has been modest, with small-scale launches focused around electric scooters and prototype testbeds like the CR Electric motocross bike.
Whispers from Honda have hinted at an upcoming street bike, and some observers believe this new model could be the production version of that EV Fun Concept from EICMA Milan Motorcycle Show. Whether it uses Honda’s swappable batteries like the EM1 e: remains to be seen, but it’s likely to target daily riders in urban markets rather than aiming for long-range touring or high-speed sport performance.
Honda has been characteristically cautious in its entry into the electric space, especially compared to startup rivals and brands like Zero, LiveWire, and Ryvid. But the September 2 reveal may signal a new chapter as the world’s largest motorcycle manufacturer finally takes electric motorcycles more seriously.
We’ll be watching closely to see what Honda brings to the table, especially as legacy brands start feeling pressure from both regulators and riders to electrify their lineups.
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With its tire-blistering acceleration and record-setting performance, the Xiaomi SU7 Ultra has been getting attention throughout the auto industry, impressing everyone who’s seen it. That “everyone” now seems to include the OG supercar brand, itself.
CarNewsChina posted pictures from a Weibo user that reportedly show a Xiaomi SU7 Ultra exiting the storied Ferrari factory in Maranello, Italy. According to a Chinese blogger going by 西米露在博洛尼亚 (which seems to translate to “Sago Dessert in Bologna”), the prancing horse brand is actively benchmarking the Chinese hypercar for its own upcoming EV.
The SU7 Ultra was definitely coming from inside Ferrari’s facility. After verification, we learned this specific vehicle was officially purchased by Ferrari for testing, and the development of their next-generation electric platform.
Yet another Chinese auto blogger, 苏黎世贝勒爷, claims that Ferrari representatives visited Xiaomi headquarters last year, allegedly to discuss the joint development of next-generation high-performance EV motors.
The Xiaomi SU7 Ultra made its debut last year, promising 1,548 hp, sub 2.0-second 0-60 mph times, and a top speed well over 200 mph – all at a price lower than a Tesla Model S Plaid or Porsche Taycan Turbo GT. The car sold out almost immediately after it was unveiled, racking up some 50,000 orders almost overnight.
The new electric benchmark
In the automotive world, “benchmarking” is a process in which car companies systematically tear down each others’ competitive products to compare everything from sound insulation, vehicle ride and handling, component materials, and even manufacturing methods against their own or against other industry leaders. The goal is to evaluate performance, cost, quality, and other key metrics, effectively figuring out “where they stand” in the market.
If Ferrari really did buy an SU7 to benchmark it against their own upcoming electric supercar, it’s more than just a curiosity – it could mean that the highest tiers of automotive innovation have shifted from West to East. Maybe forever.
Featured image via Xiaomi; sources throughout the post.
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We’re finally getting our first teases of the upgraded 2027 Chevy Bolt, built on GM’s battery/motor platform formerly known as Ultium. So far, so good for the vehicle, which will be revealed later this Fall.
Chevy took to social media today to tease the 2027 Chevy Bolt, saying, “You asked, we listened. The #ChevyBolt is back and better than ever. More this fall. 👀”
Chevy ended the original Bolt program with the 2023 model, which was loved by a loyal group of customers (including myself). Some of the major gripes, including charging speed and rear brake lights, already look to be addressed. Also, a new more aggressive fascia is debuting.
Electrek’s take
GM has done an incredible job keeping the 2027 Bolt under wraps. It will be the first GM vehicle with a native NACS port after the Cadillac Optiq-V, which we spied in Seattle last week.
Hopefully, the new Bolt will have improved charging speeds over and above the 54kW that previous Bolts adhered to. One possible downgrade is that the old Bolt’s amazing wireless CarPlay/Android Auto system will likely be replaced by GM’s move to Android’s built-in experience. For a few years, the Chevy Bolt was the most affordable long-range EV, and it won our 2022 Electrek car of the year for its versatility and price.
I would, of course, like to see the new Bolt as a hot hatchback, but GM CEO Mary Barra has hinted that it will likely take more of the EUV’s SUV form factor. Things like AWD options, SuperCruise, pricing, power and range are yet to be revealed, but stay tuned to Electrek for the latest on Bolt developments.
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