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SolutionsPlus Policy Paper: Vehicle Conversion in Kathmandu, Nepal

Summary

This policy advice paper provides an in depth analysis of electric vehicle conversion as a strategic pathway to accelerate electric mobility adoption in Nepal, with a particular focus on heavy duty vehicles such as buses and light commercial vehicles. Drawing on SOLUTIONSplus pilot demonstrations in Kathmandu, the document examines the technical feasibility, financial viability and environmental impacts of converting internal combustion engine vehicles to electric drivetrains. It situates vehicle conversion within Nepal’s evolving regulatory landscape following amendments to the Motor Vehicle and Transport Management Act, and uses empirical evidence from pilot conversions of a diesel bus and a mini truck to assess greenhouse gas reductions, air pollutant abatement and total cost of ownership. The paper positions vehicle conversion as a transitional solution that complements new electric vehicle deployment by extending vehicle lifecycles, reducing scrappage and lowering entry barriers to electric mobility in a resource constrained context.

Key takeaways

The document addresses vehicle conversion processes, policy and regulatory frameworks, financial and environmental performance, and institutional and technical capacity requirements. It details the four step conversion process from inspection to testing, evaluates international policy approaches to vehicle retrofitting, and analyses barriers related to regulation, skills, financing, infrastructure and public acceptance. Using detailed pilot data, it compares converted vehicles with new diesel and electric alternatives, highlighting trade offs between profitability and emissions reduction. The paper further identifies opportunities for Nepal to strengthen conversion through national guidelines, coordinated governance, targeted incentives, capacity building for technicians and engineers, and integration of conversion into broader transport decarbonisation strategies aligned with national climate commitments.

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Publisher

Bhupendra Das, Shritu Shrestha, Jason Esguerra, Bijay Thapa, Richelle Amponin, Kanya Pranawengkapti, George Panagakos, Janak Risal, Abhisek Karki

Contacts

Urban Electric Mobility Initiative (UEMI) gGmbH Email: secretariat@uemi.net