Kathmandu, April 6 - In a significant policy shift toward sustainable transportation, the Government of Nepal has decided to facilitate the conversion of diesel and petrol vehicles into electric vehicles (EVs), targeting both a reduction in petroleum imports and a decrease in environmental pollution.
A recent Cabinet meeting endorsed the development of necessary legal frameworks to support this transition. The decision comes amid growing concerns over Nepal’s rising fuel import bill and increasing urban air pollution, particularly in cities like Kathmandu.
Government spokesperson and Minister for Education, Science and Technology, Sasmita Pokharel, stated that the move is aimed at promoting environmental protection while reducing dependency on fossil fuels. Until now, vehicle owners willing to convert their internal combustion engine vehicles into electric ones have faced regulatory hurdles due to the absence of clear provisions regarding registration, renewal, and technical standards.
With the new policy direction, authorities expect that aging fuel-powered vehicles can be retrofitted into electric ones at a comparatively lower cost instead of being scrapped. This could not only extend the lifespan of existing vehicles but also create new economic opportunities in the domestic engineering and automotive sectors.
According to Bharat Poudel, Vice President of the Electric Conversion Production and Distribution Association, the demand for electric vehicles in Nepal has surged in recent months, nearly doubling compared to previous periods. He attributed this trend partly to rising global fuel prices influenced by geopolitical tensions in West Asia, which have made conventional fuel vehicles increasingly expensive to operate.
Poudel also emphasized that promoting vehicle conversion could generate employment for Nepali engineers and technicians. However, he noted that despite a similar policy announcement four years ago, implementation stalled due to the absence of operational guidelines-highlighting the need for timely execution this time.
Market data indicates that electric mobility is gradually gaining ground in Nepal. Electric bicycles are priced between NPR 80,000 and NPR 150,000, while electric scooters range from NPR 150,000 to NPR 500,000. Electric cars are available from around NPR 1.5 million up to NPR 20 million, depending on model and features. The expansion of service centers in recent years further reflects the sector’s growth.
Consumers and industry stakeholders point out that EVs offer significantly lower operating and maintenance costs compared to petrol and diesel vehicles. With fewer moving parts, maintenance expenses are largely limited to batteries, tires, and routine servicing. Importantly, EVs do not emit harmful gases such as carbon monoxide, making them a cleaner alternative for both the environment and public health.
Meanwhile, the financial strain on the country’s fuel sector continues to intensify. The Nepal Oil Corporation recently increased fuel prices multiple times within a short span, citing rising international costs. Despite these adjustments, the corporation has reported substantial financial losses, underscoring the urgency of reducing reliance on imported fossil fuels.
However, challenges remain. The limited availability of charging infrastructure across the country continues to hinder the widespread adoption of electric vehicles. Experts suggest that alongside regulatory reforms, investment in charging networks will be crucial to ensure the success of Nepal’s electric mobility transition.
As Nepal seeks to align economic priorities with environmental sustainability, the government’s renewed push for electric vehicle conversion could mark a practical step toward a cleaner and more energy-secure future-provided that implementation is timely, transparent, and supported by adequate infrastructure.
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