Flooding in the Bhotekoshi River in Rasuwa early Tuesday morning, July 8, has caused severe damage to infrastructure at the Rasuwagadhi Customs—one of Nepal’s two primary trade routes with China.
At least 18 people have gone missing, and the swollen river submerged or swept away freight trucks and vehicles, including electric, parked at the customs yards in Timure, officials said.
[Read: Bhotekoshi Flood Wreaks Havoc on Northern Trade Corridor ]
The disruption has raised concerns about the import of electric vehicles (EVs), which have become a major component of Nepal’s auto market, especially with most sourced from China.
Nepal imported 13,483 four-wheeled electric vehicles during the first 11 months of the current fiscal year, 2024/25, with 10,194 units—or more than 75%—coming from China, according to the Department of Customs. Chinese brands had dominated last fiscal year when Nepal imported 11,701 EVs worth Rs 29.48 billion.
[Read: EVs Steal the Limelight at NADA Auto Show 2024 ]
[In Photos: EVs Flood Chobhar Dry Port Amid Whispers of Possible Tax Hike ]
Rasuwagadhi–Kerung and Tatopani–Khasa are the two major customs points for Nepal-China trade.
Ashish Gajurel, Executive Director of the Nepal Intermodal Transport Development Board (NITDB), said roughly 200 trucks are usually parked at the Rasuwagadhi Customs Yard. “Many of them, except those moved to higher ground during the night, may have been swept away,” he added.
Authorities said they have prioritised search and rescue operations, and damage assessments would follow later.
Industry, Commerce and Supplies Minister Damodar Bhandari told Parliament that the full extent of flood damage to the dry port under construction in Timure was yet to be confirmed. “Around 75 percent of the port construction had been completed with assistance from the Chinese government,” he said. “But the exact extent of the damage is still unknown.”
[Read: Tax Breaks Make Small EVs in Nepal Rs 4 Million Cheaper than Petrol-Powered Vehicles: World Bank ]
Deepak Thapaliya, General Manager of Laxmi Intercontinental—the authorised dealer for Hyundai vehicles in Nepal—stressed the importance of the Rasuwagadhi route. “Sixty to seventy percent of EVs are imported through this corridor. From a logistics perspective, it’s a critical route,” he said.
With the primary transit route now cut off, importers say one of the immediate challenges will be bringing in vehicles and parts, especially ahead of upcoming auto expos.
The Nepal Mobility Expo, organised by NAIMA, is scheduled for August 6–10. It will be followed by the NADA Auto Show 2025, slated for August 19–24 at Bhrikutimandap, Kathmandu. Both events were expected to feature new EV models, including left-hand-drive and concept vehicles.
Notably, EVs flooded the Chobhar dry port earlier in May when importers rushed to bring in EVs from China through the Tatopani and Rasuwagadhi border crossings, amid speculation of tax hike weeks before the scheduled budget announcement on May 29.
Customs officials had told New Business Age that a large number of EVs from various Chinese brands were being imported.
Rabindra Prasad Pyakurel, Information Officer at Rasuwa Customs Office, had said that approximately 150 EVs were entering Nepal daily through the Rasuwagadhi checkpoint. Over 1,000 vehicles were waiting for customs clearance in mid-May.
The government, however, kept the taxes on EVs constant.
[Read: Government to Introduce Strict Regulations on EVs ]
In a statement, the NADA Automobiles Association of Nepal (NADA) said the disaster has significantly impacted EV imports through one of the country’s major trade gateways. The association added that it remains committed to supporting the automobile sector during this crisis.