Nepal sees surge in electric vehicle imports and electricity use

Nepal is experiencing a significant surge in electric vehicle (EV) imports and electricity consumption. In the first month of the current fiscal year, electric car imports rose fourfold to 689 units, compared to 160 units in the same period last year. Electric two-wheelers also saw record imports, with 5,174 units entering the country in a single month, representing 18.60 percent of total two-wheeler imports. Traders attribute this growth to expanding charging infrastructure, rising petroleum prices, and lower operating costs for electric models.

Concurrently, the Nepal Electricity Authority (NEA) reported that per capita electricity consumption rose by 5.98 percent to 418.31 units in the last fiscal year. Total electricity users reached over 6.383 million, a 3.32 percent increase. While electricity sales grew by 9.64 percent to 12.376 billion units, the NEA faced challenges with distribution efficiency. Electricity leakage in the system rose to 10.44 percent, resulting in approximately 1.44 billion wasted units and an estimated revenue loss of Rs 14 billion, despite significant investments in new transmission lines, transformers, and substations.