Only EVs to be registered as public vehicles
Nepal is preparing a major shift in public transport. New public vehicle registrations are planned to be limited to electric vehicles only, with diesel-powered taxis and buses to be phased out. Infrastructure Development Minister Sunil Lamsal has said policies and laws are being drafted to make EVs mandatory for public transport nationwide. Registrations for public vehicles were stopped on May 21, including black number plate units. Cargo vehicle registration has since reopened, but passenger public vehicle registration remains frozen.
Minister Lamsal emphasized that diesel vehicles will not be allowed to operate in the future, marking a clear government stance. Customs clearance for diesel vehicles will also be stopped as part of this transition.
Diesel fleets to be scrapped with support
Existing diesel taxis, short-route buses, and long-route buses will not stop overnight. They are to be gradually scrapped and replaced by EVs. To ease the change, the government is discussing:
- Scrap value for current diesel public vehicles
- Concessional loans for new electric replacements
- Subsidies and customs exemptions on EVs for public transport use
Entrepreneurs have been asked to propose a detailed framework, with the minister saying the government is ready to pass supporting laws. Diesel vehicle registration was halted to prevent future issues for operators when EVs become mandatory, ensuring a smoother transition.
BRT-style public transport and city pilots
A new national transport policy and law is being drafted to organize public transport on a BRT-style, corridor-based model aligned with international standards. Work on modern public transport management with electric vehicles has already started in Pokhara in coordination with the Asian Development Bank, with Kathmandu and Lumbini to follow.
EV use in private cars has risen sharply, with electric vehicles now making up over 70 percent of new private car registrations. In large public vehicles, EV penetration is still low, so this policy shift is aimed at pulling taxis and buses into the electric lane. For buyers and operators, the clear signal is that future public fleets are expected to be electric.
Minister Lamsal also pointed out that diesel vehicle owners are encouraged to switch to EVs to avoid price fluctuations, highlighting the economic benefits of transitioning to electric vehicles.
Writes on vehicle pricing, taxation and the Nepali auto market from ongoing tracking of distributor price lists. Editorial policy.
