Aug 16, Kathmandu - The Nepali tourist transportation sector is witnessing a significant shift towards electric vehicles (EVs), with nearly 90% of small and medium tourist vehicles in the market being converted to EVs, displacing traditional petrol and diesel-powered cars.

According to the Nepal Tourism Vehicle Association (NTVA), there has been a remarkable increase in the adoption of EVs for tourist services across Kathmandu Valley and major tourist destinations. Ramhari Sharma, former president of NTVA and Managing Director of Mahalakshmi Vehicle, stated that EVs now comprise around 90% of the operational tourist cars. He highlighted that although initial investments are comparable to conventional fuel vehicles, the lower maintenance and operational costs are attracting more business owners towards EVs.

Chinese brand BYD currently dominates the tourist EV market in Nepal. Other brands such as CG Neta, KIA, and Omoda are also active in providing electric tourist vehicles. Industry insiders point out that EVs are more cost-effective compared to fuel-powered vehicles, especially given the rising fuel prices, making them an attractive option for tourists and operators alike.

A typical fuel vehicle incurs about NPR 20,000 in regular servicing costs, whereas EVs require only around NPR 2,000. Moreover, fluctuations in petrol and diesel prices have less impact on EV operations, providing stability to businesses engaged in tourist transport.

While EVs have captured a significant share of the tourist vehicle market, larger tourist vans and buses are still in the early stages of transition. Although electric 16-seater vehicles from Kinglong and KYC brands have begun to be used, limited options for large vehicles mean the conversion process is slower. The adoption of EVs is more prevalent within Kathmandu Valley, with comparatively lower usage outside the capital.

Bhim Bahadur Gole, President of the Nepal Tourism Vehicle Association, informed that about 110 tourist transport companies in Kathmandu are affiliated with the association, operating over 4,000 tourist vehicles. Currently, due to the off-season, around 1,000 vehicles are active daily.

Despite this substantial fleet, industry insiders say the lack of government incentives and support hampers the growth of tourist EVs. These vehicles operate under green number plates registered with the tourism department. Gole emphasized that the government’s failure to promote green license plates and provide facilities has led many operators to run their EVs under regular red plates as private vehicles, hindering further expansion.