Korala Route Becomes Key for China-Made Vehicles Amid Border Disruptions

KATHMANDU: Auto dealers are working to bring pending vehicle bookings into Nepal in time for Dashain and Tihar.

Flood damage at Rasuwagadhi and a safety shutdown at Tatopani have disrupted the usual China routes for new vehicles heading to Nepal. Trade traffic has shifted west, and Korala in Mustang has become the main crossing for China-made cars and SUVs. Deliveries start in Dashain.

Korala Customs officials say they are currently busy clearing incoming consignments of passenger vehicles and electric cars. Photos of trailers lined up at the border and cars being unloaded show that shipments are already reaching the crossing. In the past 15 days, Korala Customs has collected over NPR 1.78 billion in revenue. Between September 10 and 25, 434 containers and 641 electric vehicles were cleared.

According to the Mustang Customs Office, 641 EVs and 434 containers were cleared through Korala between August 26 and 31. The increase in imports comes as Chinese vehicle importers are using Korala as an alternative route to ensure timely deliveries to customers who booked vehicles at the NAIMA Mobility Expo and NADA Auto Show.

Customs Office Chief Bidur Chudal noted that EVs and containers are still arriving in large numbers. On Friday alone, 106 EVs and 71 containers were cleared and sent towards their destinations. Additional staff have also been deployed to speed up the customs clearance process.

Chery, BYD, Nammi, iCAUR, Omoda, Jaecoo, Arcfox, Leapmotor, MG, GWM, and Skywell are using or preparing to use the Korala route for their Nepal-bound stock. Dealers for these brands have to clear a pile of bookings taken during recent auto shows.

Customers who booked during the fairs are asking one question: when will my car arrive? Consignments are now on the move through Korala and dealers are giving regular shipment updates, with many brands publicly assuring that booked vehicles are on the way to Nepal.

At the same time, showrooms are preparing for fresh demand. Vehicle sales usually rise before Dashain as buyers time their purchases to festive offers and holidays, so importers are trying to balance clearing old bookings with stocking enough units for walk-in customers.

With China supply delayed, brands sourcing from India could gain an edge because their stock flow is less exposed to the northern border closures. That could shift short-term market share in some segments, especially entry EVs and compact SUVs.

For now, the clear message from dealers to waiting buyers is simple: festive-season deliveries are planned, but depend on how smoothly Korala can handle the extra load. Korala has become the main alternative trade route with China, establishing itself as a crucial link for imports during this period of disruption.

The government brought the Korala customs point into regular operation on September 16, 2025, after floods and landslides disrupted both Tatopani and Rasuwagadhi last year. Around 3,000 EVs were imported through Korala last year, generating Rs 6.92 billion in customs revenue.

In Bhadra alone, 1,253 EVs were imported through Korala, a significant increase from 100 EVs in Shrawan. The customs office collected NPR 1.93 billion in revenue in Bhadra, contributing to a total of NPR 3.07 billion over two months. Additionally, 697 containers were imported in Bhadra, compared to 57 in Shrawan. This surge in activity underscores Korala's growing importance as a trade route amid ongoing border disruptions.