The Government of Nepal has unveiled an ambitious target to raise the share of electric vehicles (EVs) to 95 percent by 2035, as part of its updated climate pledge under the Nationally Determined Contribution (NDC) 3.0. The new plan, approved by the Cabinet on May 14, aims to significantly shift the country’s transportation sector toward clean energy.
According to the NDC 3.0 targets, 95 percent of private two- and four-wheeler vehicles and 90 percent of commercial public transport vehicles are expected to be electric by 2035. Currently, EVs make up only 12.38 percent of Nepal’s vehicle market.
Prime Minister KP Sharma Oli highlighted this EV transition goal earlier this month during the Sagarmatha Sambaad held in Kathmandu, reinforcing the government’s climate action commitments.
To meet the 95 percent EV target, the government projects a required investment of $9.2 billion (Rs 1.25 trillion). Despite these goals, concerns persist over policy inconsistency. The government has increased taxes on EVs in the current fiscal year and is expected to do so again next year—moves that contradict its stated EV promotion strategy.
As part of its broader electric mobility roadmap, the government plans to develop 50 kilometers of electric bus, trolleybus, and light rail transit systems in the Kathmandu Valley by 2030, with an expansion to 100 kilometers by 2035. This component is expected to cost $12.75 billion (Rs 1.7 trillion).
Additionally, Nepal plans to build a 300-kilometer electric railway network dedicated to freight and public transport by 2030, with an estimated budget of $5.55 billion (Rs 750 billion).
To support this transformation, the government will expand charging infrastructure, enforce technical standards for EVs, train a skilled EV workforce, and set up specialized EV service centers by 2030. Plans also include establishing a national EV research center and vehicle fitness standards by 2035.
NDC 3.0 further outlines efforts to promote battery recycling by 2030 and develop efficient public transportation systems in Kathmandu Valley and other major cities by 2030, expanding to all urban centers by 2035.
