Nepal’s 2025-26 budget, announced on May 29, 2025, brings exciting news for anyone eyeing an electric vehicle (EV): taxes on EVs stay unchanged! With a Rs 1.964 trillion budget, Finance Minister Bishnu Paudel is keeping electric car prices stable, making it a great time to consider models like the Tata Nexon EV, BYD Dolphin, or MG S5 EV. After last year’s tax hikes, importers stocked up on EVs, expecting more increases, which could mean discounts for buyers. This article dives into the budget’s EV tax details, lists top electric cars in Nepal with their tax rates, revisits the 2024-25 tax jumps, explores government incentives, shares a comparison of popular EVs, offers buying tips, and predicts what’s next for Nepal’s EV market. Searching for the best electric cars in Nepal 2025? Read on!
EV Taxes in the 2025-26 Budget: Stable and Supportive
The 2025-26 budget keeps EV taxes steady, aligning with Nepal’s goal of a zero-carbon economy by 2045, targeting 25% of private car sales as EVs by 2025 and 90% by 2030. Stable taxes make electric cars more appealing, cut urban pollution, and boost Nepal’s hydropower use. The budget also invests Rs 87.55 billion in energy to add 900 MW to the grid and increase per capita electricity use to 450 units, ensuring clean power for EVs.
Current EV Tax Rates and Top Models
The budget retains the 2024-25 tax structure, based on motor power (kW), as per the Department of Customs (May 2025). Here’s the breakdown with popular electric cars in Nepal:
- Up to 50 kW:
- Taxes: Customs Duty: 15%, Excise Duty: 5%, VAT: 13% (standard for all vehicles).
- Models:
- Tata Tiago EV (~45 kW): Compact hatchback, ~250 km range, ~NPR 2.2-2.5 million, ideal for city commuters.
- MG Comet EV (~40 kW): Budget-friendly urban car, ~230 km range, ~NPR 1.9-2.2 million.
- Neta V (~40 kW): Compact crossover, ~250 km range, ~NPR 3.8-4 million.
- 51-100 kW:
- Taxes: Customs Duty: 20%, Excise Duty: 15%, VAT: 13%.
- Models:
- Tata Nexon EV (~95 kW): Popular SUV, ~300-412 km range, ~NPR 4.5-5 million.
- Hyundai Kona EV (~100 kW): Stylish SUV, ~305-482 km range, ~NPR 5.7-7.2 million.
- MG S5 EV (~99 kW): New family SUV, ~340-430 km range, ~NPR 4.4-5.5 million.
- BYD Dolphin (~70 kW): Compact hatchback, ~340 km range, ~NPR 4.1-4.5 million.
- Dongfeng Nammi 01 (~70 kW): Premium hatchback, ~300 km range, ~NPR 3.5-4 million.
- 101-200 kW:
- Taxes: Customs Duty: 30%, Excise Duty: 25%, VAT: 13%.
- Models:
- BYD Atto 3 (~150 kW): Premium SUV, ~420 km range, ~NPR 5.7-6.8 million.
- Kia EV6 (~168 kW): Sporty SUV, ~528 km range, ~NPR 7-8 million.
- Leapmotor C10 (~160 kW): Modern SUV, ~420 km range, ~NPR 7.2-7.5 million.
- Xpeng G6 (~190 kW): Sleek coupe SUV, ~435 km range, ~NPR 7-8 million.
- Above 200 kW:
- Taxes: Customs Duty: 40%, Excise Duty: 30%, VAT: 13%.
- Models:
- Tesla Model 3 (~225 kW): Rare sedan, ~500 km range, ~NPR 8-10 million.
- BYD Han EV (~222 kW): Luxury sedan, ~500 km range, ~NPR 8-9 million.
- BYD Seal (~230 kW): High-tech sedan, ~550 km range, ~NPR 7-8 million.
- BYD Sealion 7 (~200+ kW): New premium SUV, ~550-610 km range, ~NPR 8-9 million (not yet widely available).
Provincial road taxes and registration fees apply. Compared to pre-2024 (10% customs, no excise for small EVs), these taxes keep prices higher, e.g., NPR 4.5-5 million for a Tata Nexon EV vs. NPR 2-3 million for gas cars.
The 2024-25 Tax Hikes: A Pricey Lesson
The 2024-25 budget raised EV prices significantly:
- Excise Duties Added: EVs went from zero to 5-30% excise duty, hitting 51-100 kW models like the BYD Dolphin and MG S5 EV with 15%.
- Customs Duty Increases: Duties rose 5-10%, e.g., 10% to 15% for small EVs and 15% to 20% for mid-range ones.
- Price Impact: Prices jumped 10-20%, pushing a Hyundai Kona EV from NPR 3.8-4.2 million to NPR 5.7-7.2 million.
- Reaction: Buyers and green advocates criticized the hikes, saying they made gas cars cheaper and slowed Nepal’s eco-friendly goals.
The feedback, seen in Kathmandu Post and X posts, likely influenced the 2025-26 decision to keep taxes steady.
Government Incentives: More Than Just Taxes
Beyond stable taxes, the budget offers perks to make EVs more attractive:
- Charging Infrastructure: A 1% customs duty on charging equipment and five-year tax exemptions for station builders will expand Nepal’s ~400 public chargers, especially in cities.
- Energy Boost: The Rs 87.55 billion energy allocation supports hydropower, ensuring reliable, clean electricity for charging.
- Local Support: Rs 96 billion for provinces and Rs 312 billion for local governments could lead to reduced road taxes or EV-friendly policies in places like Pokhara or Biratnagar.
These incentives make now a smart time to consider an electric car, especially with potential deals from surplus stock.
Why Now’s a Great Time to Buy
Importers, fearing tax hikes, imported 30% more EVs in 2024-25, per Department of Customs, stocking up on models like the Dongfeng Nammi 01 and Leapmotor C10. With no new taxes, this surplus could mean discounts or financing offers, particularly for popular 51-100 kW models like the MG S5 EV or BYD Dolphin. For urban buyers aged 30-40, this is a chance to grab a top electric SUV in Nepal 2025 at a better price.
Nepal’s EV Market: On the Rise
Nepal’s EV market is growing:
- Sales: EVs hit ~5% of private car sales in 2024, up from 2% in 2022, led by 51-100 kW models like the Tata Nexon EV and BYD Dolphin.
- Charging Network: ~400 public chargers, mostly in Kathmandu Valley, with budget perks set to add more.
- Buyer Trends: Urban professionals and families, fueled by remittances (12.4% of GDP), drive demand, but rural areas lag due to limited chargers.
- Social Media: X users love the Xpeng G6’s tech and BYD Sealion 7’s range but note high prices and rural charging gaps.
Compare Popular EVs: Which One’s for You?
Choosing the right electric car? Here’s a comparison of top models in Nepal (prices and specs based on dealer data and X posts, May 2025):
Model | kW | Price (NPR) | Range (km) | Charging Time (AC) | Best For |
---|---|---|---|---|---|
Tata Tiago EV | 45 | 2.2-2.5M | ~250 | 8-9 hrs | Budget city commuters |
MG Comet EV | 40 | 1.9-2.2M | ~230 | 7-8 hrs | Urban solo drivers |
Neta V | 40 | 3.8-4M | ~250 | 8-10 hrs | Budget-conscious families |
Tata Nexon EV | 95 | 4.5-5M | ~300-412 | 8-10 hrs | Urban SUV lovers |
BYD Dolphin | 70 | 4.1-4.5M | ~340 | 8-9 hrs | Young families |
MG S5 EV | 99 | 4.4-5.5M | ~340-430 | 8-10 hrs | Family adventures |
Hyundai Kona EV | 100 | 5.7-7.2M | ~305-482 | 9-10 hrs | Style-conscious drivers |
BYD Atto 3 | 150 | 5.7-6.8M | ~420 | 8-10 hrs | Premium SUV seekers |
Leapmotor C10 | 160 | 7.2-7.5M | ~420 | 7-9 hrs | Tech-savvy adventurers |
Xpeng G6 | 190 | 7-8M | ~435 | 7-9 hrs | Luxury coupe fans |
Note: Prices include taxes; fast charging (DC) cuts times to ~30-60 min where available.
Tips for Buying an Electric Car in Nepal
Ready to get an EV? Here’s how to make it easy:
- Find Deals: Surplus stock means discounts. Check Kathmandu or Pokhara showrooms.
- Check Charging: Most of the citis have many chargers. Elsewhere, get a home charger (~NPR 100,000-200,000) or use apps like PlugShare.
- Save Big: EVs cost NPR 1-2/km vs. NPR 5-7/km for gas. A 30 km daily drive saves NPR 40,000+ yearly, plus lower maintenance.
- Test Drive: Most city dealers offer test drives.
- Battery Warranty: Look for 5-8 year battery warranties, standard for models like the BYD Atto 3 or Kia EV6.
- Financing: Seek low-interest loans or zero-down-payment plans, especially now with extra stock.
What’s Next for Electric Cars in Nepal?
Nepal’s EV future looks promising:
- More Chargers: The 1% duty and tax breaks will add stations in cities like Biratnagar, Nepalgunj, and Dhangadhi, making models like the Neta V more practical.
- Cheaper EVs: Discounts on surplus stock could lower prices for budget options like the MG Comet EV or Dongfeng Nammi 01.
- Policy Wins: Provinces might cut road taxes using Rs 96 billion from the budget, and subsidies could drop Nepal EV prices further.
- Local Manufacturing: The “Made in Nepal” push might bring Tata or BYD assembly plants, making models like the Tata Nexon EV or BYD Dolphin cheaper.
- New Models: Expect launches like the BYD Sealion 7 or affordable variants from Leapmotor and Xpeng by 2026.
The 2025-26 budget’s decision to keep EV taxes steady is great for buyers, avoiding the pain of last year’s hikes. With surplus stock of top electric cars in Nepal 2025 like the MG S5 EV, BYD Dolphin, and Leapmotor C10, now’s a smart time to buy. From budget-friendly MG Comet EVs to premium Xpeng G6s, there’s an EV for every urban professional or family. Growing chargers and long-term savings make electric cars a win for Nepal’s zero-carbon 2045 goal. Visit the Ministry of Finance or Department of Customs websites, or check X for the latest on Nepal EV prices and deals.
Sources: Kathmandu Post, Khabarhub, TechLekh, New Business Age, Department of Customs data, and X posts (May 2025).
Want more on Nepal’s EV market? Check our guide on EV charging in Nepal!
0 Comments