Er.energyNP@Gmail.com

Nepal has emerged as the world’s second-highest country in terms of electric vehicle (EV) sales share, highlighting a dramatic shift in its automobile market toward clean mobility and energy transition.

According to global EV market estimates for 2025, Nepal recorded about 73 percent of new car sales as electric, placing it just behind Norway, which maintained the top position with an estimated 97 percent of new vehicle sales being electric. This means nearly every new car sold in Norway last year was powered by electricity.

Nepal’s rapid climb in EV adoption represents a remarkable transformation over a short period. In 2019, electric vehicles accounted for only 8 percent of new car sales in the country. The jump to 73 percent by 2025 indicates one of the fastest EV transitions recorded globally, driven by policy incentives, tax benefits, rising fuel costs, and growing consumer awareness.

While Nepal ranks second in percentage share, China continues to dominate the global EV market in absolute volume. China is estimated to have sold more than 13 million electric vehicles in 2025, accounting for about 53 percent of its total new car sales. This makes China not only the largest EV market by numbers but also one of the fastest-growing major automotive markets in electrification terms.

Data from the International Energy Agency and energy think tank Ember show that EV figures include both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

Globally, the period between 2019 and 2025 has marked a turning point for electric mobility. In 2019, EVs were still considered a niche purchase in most countries, typically occupying only single-digit shares of new vehicle sales. By 2025, however, many markets had shifted decisively toward electrification.

Several European countries have crossed the 50 percent threshold in EV adoption. Among them, Finland and Denmark both recorded EV shares exceeding 50 percent, reflecting strong policy backing and charging infrastructure expansion.

Other European markets have also reported notable growth since 2019. EV shares reached approximately 43 percent in Belgium, 56 percent in Netherlands, 37 percent in Portugal, and about 33 percent in the United Kingdom.

In contrast, the United States remains relatively behind leading EV markets. Its electric vehicle share stood at roughly 10 percent in 2025, equal to about 1.6 million units sold, reflecting steady but slower adoption compared to Europe and Asia.

Nepal’s position near the top of the global ranking is widely attributed to its heavy reliance on hydropower-based electricity, high import taxes on fossil-fuel vehicles, and strong price competitiveness of EVs compared to petrol and diesel models. The country’s geography and urban congestion challenges have also made small and mid-range electric cars particularly attractive for consumers.

With EVs now dominating new car sales, Nepal is increasingly being viewed as a case study in how developing economies can leapfrog directly into clean transportation when supportive fiscal policy, energy supply, and consumer economics align.

Country - Share of New Car Sales (2019) - Share of New Car Sales (2025)
Norway - 56% - 97%
Nepal - 8% - 73%
Denmark - 4% - 69%
Sweden - 11% - 61%
Iceland - 26% - 57%
Finland - 7% - 56%
Netherlands - 15% - 56%
China - 5% - 53%
Belgium - 3% - 43%
Portugal - 6% - 37%
Ireland - 4% - 34%
Luxembourg - 4% - 34%
Switzerland - 6% - 33%
UK - 3% - 33%
Austria - 4% - 31%
Israel - 2% - 31%
Germany - 3% - 29%
France - 3% - 25%
Thailand - 1% - 21%
Latvia - 1% - 19%