The government has decided to introduce subsidies and legal provisions to support the conversion of petrol and diesel vehicles into electric ones, aiming to reduce fuel imports and tackle rising pollution.
A Cabinet meeting on Sunday approved the move, which will allow older fuel-based vehicles to be converted into electric vehicles under a clearer regulatory framework. Until now, vehicle owners faced difficulties due to the lack of clear rules on registration, renewal, and technical standards for converted vehicles.
The policy is part of a broader effort to cut Nepal’s dependence on imported petroleum and make better use of domestic electricity, much of which comes from renewable sources. Officials believe converting existing vehicles will be a more affordable option for many people compared to buying new electric models.
Interest in electric vehicles has already been rising in recent years. Industry representatives say demand has increased significantly, driven in part by rising global fuel prices and growing awareness of long-term cost savings. Electric vehicles are generally cheaper to operate and maintain, as they require less frequent servicing and no fuel.
The government also sees the move as an opportunity to create jobs, particularly for Nepali engineers and technicians involved in vehicle conversion and maintenance.
However, challenges remain. A lack of charging infrastructure continues to limit wider adoption, especially outside major cities. At the same time, recent increases in fuel prices have added urgency to the shift. Nepal Oil Corporation has raised the price of petrol, diesel, and aviation fuel multiple times in recent weeks, adding pressure on consumers and the economy.
The success of the policy will depend on how quickly clear guidelines are implemented and whether supporting infrastructure can keep pace with demand.