Chinese automakers are cementing their dominance in Nepal’s fast-growing electric vehicle (EV) market, outpacing Indian rivals by a wide margin.

According to the Department of Customs, Nepal imported 16,701 EVs worth Rs41.23 billion in fiscal year 2024-25, making up 73 percent of all four-wheeled passenger vehicle imports. Of these, 13,338 units were Chinese, while Indian brands struggled to keep pace amid supply bottlenecks and limited production.

At this year’s NAIMA Auto Show in Kathmandu, Chinese brands from BYD and Zeekar to Leapmotor and NIU drew massive crowds with competitive pricing, advanced technology, and attractive offers. BYD, now a top seller in Nepal, unveiled its Atto 1 SUV starting at Rs2.89 million, while Leapmotor showcased models ranging from the budget-friendly T03 hatchback at Rs2.79 million to the C10 SUV at Rs6.5 million.

In contrast, Indian automakers like Tata and Mahindra, once dominant players, are now facing stiff competition. Tata’s Nexon EV, which led sales until 2022, has seen declining momentum as Chinese brands captured market share. Mahindra launched its all-electric BE 6 and XEV 9e SUVs at the show, priced between Rs5.7 million and Rs9.5 million, hoping to regain ground.

Industry observers say Chinese manufacturers have an edge in technology and availability, with Indian suppliers constrained by domestic demand and slower EV rollout. “Chinese competition has pushed the market forward, but we believe Mahindra’s after-sales service and brand trust will help us stand out,” said Sachin Arolkar, Mahindra’s head of international operations.

Visitor turnout at the Auto Show has been strong, with nearly 50,000 people attending in the first three days. Organisers expect attendance to cross 100,000 by the close. More than 50 brands are participating, with 35 new models launched, including two-wheelers and hybrids.

Consumer demand reflects the changing landscape. “Chinese EVs are slightly ahead in technology and finish,” said Ishwar Rauniyar, a visitor from Balaju, while browsing the show. “They offer more features, even at lower price points.”

Analysts say Nepal’s EV surge from just 236 imports in fiscal 2019-20 to over 16,000 in 2024-25 underscores both consumer appetite and China’s growing influence. With festival-season offers and wider model choices, traders expect bookings to surge further in the coming weeks.