Highlights

• Production of small and affordable electric vehicles (EVs) is declining globally.

• Chinese automakers are moving away from compact EVs to focus on premium, long-range models.

• In Nepal, electric SUV demand is growing rapidly, overshadowing hatchbacks and mini EVs.

• Rising costs, strict export policies, and shifting buyer preferences are squeezing out budget EVs.

Global Decline of Low-Cost Electric Vehicles

Small, affordable electric cars that once defined early EV markets are steadily disappearing. When the Nissan Leaf launched in 2010, it set the stage for budget-friendly electric mobility. Tesla, meanwhile, positioned itself as a premium EV maker. This created two distinct market segments—affordable city EVs and luxury performance EVs.

Today, that balance has changed. Manufacturers are gradually abandoning low-cost EVs, choosing to build larger, longer-range, and more profitable models instead.

Nepal’s Electric Vehicle Journey: From Compact Cars to SUVs

Nepal’s EV story started small. Early electric cars like the Reva and Mahindra e2o were city-focused, affordable, and simple. They played a vital role in introducing electric mobility to the country.

Over time, dozens of small hatchbacks and micro EVs—mostly from Chinese brands—entered the Nepalese market. Yet, most of them vanished quickly due to limited range, low durability, and weak after-sales support.

Among the few survivors, MG Comet EV continues to perform reasonably well. But overall, mini EVs have failed to attract sustained demand in Nepal’s increasingly competitive electric vehicle market.

Why Affordable EVs Are Losing Ground

China’s Focus Shifts to Premium Electric Models

China, the world’s largest EV manufacturer, has shifted focus from producing low-cost cars to developing high-range premium EVs. New export regulations require official approvals for international shipments, slowing down small EV exports.

The average range of Chinese EVs has now reached around 538 km, a clear indicator of where the industry is heading. Manufacturers are investing heavily in performance and luxury, moving away from the once-popular budget segment.

Cost Challenges for Small EVs in Emerging Markets

Importing small EVs from third countries has become increasingly expensive. Factors such as higher manufacturing costs, shipping fees, and taxes make these models less appealing in countries like Nepal.

Even competitively priced hatchbacks like the Tata Tiago EV, BYD Dolphin, and Wuling Bingo struggle to compete with SUVs that offer more space, range, and features for a similar price.

SUV Popularity Outpaces Compact EVs

The SUV craze has taken over the electric vehicle market, including Nepal. Buyers now prioritize space, safety, and features over compact size. Electric SUVs equipped with panoramic sunroofs, touchscreen displays, and long-range batteries are becoming the new standard for EV buyers.

This shift has left smaller models lagging behind, with only a handful of compact EVs managing to stay relevant.

Impact on Nepal’s Electric Vehicle Market

The rise of electric SUVs has reshaped the Nepalese EV market. Consumers are no longer focused on affordability alone—they seek performance, comfort, and reliability.

As a result, the entry-level EV segment is shrinking, while mid-range and premium electric SUVs dominate dealership floors. Brands are adjusting to this trend by launching budget-friendly SUVs instead of small hatchbacks or mini cars.

Can Mini EVs Make a Comeback?

While the current trend favors SUVs, small EVs could still return in the future. Advances in battery technology, energy efficiency, and lightweight materials may eventually reduce production costs, making compact electric cars viable again.

If manufacturers can deliver a balance between affordability and practicality, micro EVs could regain traction as ideal urban mobility solutions. Until then, the Nepalese EV market will remain SUV-driven.

Conclusion

The decline of small electric cars marks a major turning point for the global EV industry. What began as a movement for affordable, eco-friendly mobility has now evolved into a market driven by range, performance, and design.

In Nepal, this shift is even more visible. Electric SUVs are taking center stage, while smaller EVs fade into the background. The dream of low-cost electric mobility isn’t dead—it’s waiting for technology and innovation to make it practical once again.