Nepal’s electric vehicle (EV) imports continue to decline as key northern border points with China—the main trade routes for EV imports—remain largely closed. Two of the three border points, Kerung and Korala, are completely shut, while Tatopani is operating only partially, according to traders.

In the first five months of the current fiscal year, EV imports fell by 24.51 percent compared to the same period last fiscal year.

Data from the Department of Customs show that Nepal imported 4,286 EVs—including buses, minibuses, microbuses, cars, jeeps and vans—worth Rs10.44 billion in the first five months of the fiscal year ending mid-December. During the same period last fiscal year, imports stood at 5,536 units worth Rs13.83 billion.

Of the total imports, 3,115 EVs worth Rs7.76 billion came from China. Nepal also imported 820 EVs from India and smaller numbers from countries such as Thailand, the UK, Germany, South Korea and the United States, together worth Rs1.64 billion.

As EV imports decline, imports of combustion engine vehicles have moved in the opposite direction. Nepal imported 4,109 fuel-run vehicles—including buses, cars, jeeps and vans—in the first five months of the current fiscal year, a 55 percent increase from 2,649 units during the same period last year.

In value terms, imports of such vehicles rose by 42.67 percent to Rs5.45 billion, up from Rs3.82 billion a year earlier.

“Our orders were delayed after floods affected both Kerung and Tatopani border points during the rainy season,” said Prasanna Panta, chief executive officer of MAW Vriddhi Motors, distributor of Chinese brands including Foton, Seres, Nammi, Dongfeng and Changan. “But now EVs are coming through Tatopani and there is no major issue.”

Panta said sales have not been significantly affected as shipments resume through Tatopani. “We are selling around 150 EVs, including Nammi and Dongfeng,” he said.

On July 8, a flash flood in the Lhende River swept away the Miteri Bridge at Kerung, one of the major trading points with China. Although China has been constructing a temporary Bailey bridge, the work has been delayed, adding to traders’ difficulties. The Nepali customs point at Rasuwagadhi lies about 24 kilometres south of Kerung.

“We heard that the Kerung border point would reopen from December 25, but when we contacted the chief district officer of Sindhupalchok, he confirmed that no official information has been received,” said Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association.

Traders say shipments dispatched from Guangzhou to Nepal via the northern overland route usually arrive within three weeks, significantly reducing time and cost. Readymade garments, consumer electronics, footwear and electric vehicles are among the major imports through these border points.

Since the flood destroyed the Kerung bridge, goods ordered ahead of the Teej festival (September) have remained stuck at the Chinese border. Domestic EV dealers say sales declined during the festive season as they were unable to deliver vehicles in line with demand.

To meet festive demand, traders turned to Korala, China’s third border point with Nepal. While the Korala customs point initially provided relief, it has been closed for the past few weeks due to freezing weather conditions. Located at an altitude of 4,650 metres in Upper Mustang, Korala was opened for international trade in September.

“It has been two weeks since the Korala border point was closed,” Karki said. Traders said around eight to ten goods-laden vehicles, including EVs, had been arriving daily through Korala before the closure.

“With the closure of Korala, trade through the northern border has almost come to a halt, as China is dispatching only a minimal number of vehicles through Tatopani,” Karki said.

Globally, EV sales growth has also slowed. Data show that worldwide EV sales grew in November at the slowest pace since February 2024, as demand plateaued in China and the end of an EV tax credit scheme pushed North America toward its first annual decline since 2019.

In Europe, however, registrations of electric vehicles—including battery-electric and plug-in hybrids—continued to grow strongly, supported by national incentive programmes, and are up by around a third so far this year compared to the same period in 2024, according to consultancy Benchmark Mineral Intelligence.

Globally, 1.98 million EVs were sold in November, including 1.32 million units in China alone.