Tighter Financing Rules, Border Obstructions Drag Down EV Imports

Imports of electric four-wheelers into Nepal have declined in the first five months of the current fiscal year, with importers attributing the slowdown to border disruptions with China and weakening domestic demand.

According to foreign trade statistics released by the Department of Customs on Monday, Nepal imported 3,798 units of electric vehicles (EVs), including cars and jeeps, worth Rs 8.95 billion in the first five months of current fiscal year (FY 2025/26). In the same period of the previous fiscal year (FY 2024/25), imports stood at 4,697 units valued at over Rs 11.27 billion. 

Stakeholders say the disruption at key northern border points—Rasuwagadhi and Tatopani—has significantly affected EV imports, as China remains Nepal’s largest source of electric vehicles. Rasuwagadhi has remained closed since July 8 after flooding in Tibet’s Lhende River washed away the Friendship Bridge, completely halting imports through the route. Meanwhile, EV imports through Tatopani have been limited to just two days a week.

Milan Babu Malla, treasurer of the NADA Automobiles Association of Nepal, said the import slowdown was driven by border obstructions as well as Nepal Rastra Bank’s tighter lending policies. He said banks, which previously financed up to 80 percent of a vehicle’s value, are now allowed to finance only 60 percent, forcing buyers to make a 40 percent down payment instead of 20 percent.

“Vehicle sales are no longer at previous levels, and even imported vehicles are struggling to find buyers,” Malla said.

A representative of SPG Automobiles, the authorised distributor of Omoda vehicles in Nepal, said a surge in imports ahead of the current fiscal year’s budget—amid fears of higher taxes—had also contributed to the slowdown this year. He added that vehicle demand declined further following the Gen Z-led protests.

Tulsa Bahadur Pande, a customs officer at the Tatopani Customs Office, said priority has been given to importing perishable goods such as fruits due to logistical constraints at the border. He said EV imports, which previously took place throughout the week, are now limited to Sundays and Wednesdays, affecting overall volumes.

Smartphone Imports Rise

In contrast, smartphone imports increased during the same period. By mid-December of the current fiscal year, Nepal imported smartphones worth Rs 19.13 billion, totalling over 1.07 million units. In the corresponding period of the previous fiscal year, imports stood at over 990,000 units valued at more than Rs 15.18 billion.

Traders say consumer demand has shifted towards smartphones with larger screens, better battery performance, improved processing capacity and lower overheating issues. The growing use of online gaming, video streaming and mobile banking services has further fuelled demand for higher-capacity devices.