Kathmandu: Indian automobile manufacturers are becoming increasingly concerned as Chinese electric vehicles (EVs) gain dominance in Nepal’s auto market. While Indian vehicles have long held a strong presence in Nepal, Indian stakeholders admit that they’ve failed to establish a solid foothold in the EV segment — a crucial sector in the rapidly evolving market.
“We’ve lost the key to an important auto market. And that market is not Europe or America — it’s Nepal,” stated a recent report published by Indian media outlet Business Today. According to the report, Chinese EV brands now hold a 52.5% share in Nepal’s EV segment. This marks the first time in history that India has significantly lost ground in Nepal’s automobile market.
Indian market analyst Jayant Mundhra shared his perspective on LinkedIn. “Brands like Maruti, Tata, Mahindra, and other Indian-made vehicles have long dominated the Nepali auto market,” he wrote. “But that dominance has now completely vanished — and what’s even more concerning is that this shift has occurred on a level playing field.”
He noted that in fiscal year 2025, 75% of new cars sold in Nepal were EVs — with 70% of those being Chinese-made.
Impact of Chinese EVs on the Market
“This should be a wake-up call for anyone who claims that EVs from Tata and Mahindra are just as good as their Chinese counterparts,” Mundhra added. “If they truly were, their sales wouldn’t have disappeared so quickly in a neutral market like Nepal.”
The report further warns that if the Indian government doesn’t take steps to protect and support domestic EV manufacturers, Chinese EVs could eventually dominate even the Indian market.
