Comparative Analysis of Internal Combustion Engine to Electric Vehicle Conversions in Nepal: Technical Frameworks, Economic Viability, and Regulatory Horizons

Nepal faces a compounding economic and environmental crisis driven by its complete reliance on imported petroleum products. In the 2021/22 fiscal year alone, the country spent NPR 292.77 billion on fossil fuels, which severely drained foreign currency reserves. Simultaneously, vehicle emissions have caused critical urban air pollution, causing thousands of premature deaths annually in the Kathmandu Valley. To counter this, the Government of Nepal has focused on electric mobility to utilize its growing domestic surplus of renewable hydropower. This shift supports the state's Second Nationally Determined Contribution (NDC) goal, which targets a net-zero transport emission framework. However, buying brand-new electric vehicles (EVs) remains expensive due to high upfront technology costs. Transforming internal combustion engine (ICE) vehicles into electric vehicles through retrofitting offers a low-cost, resource-efficient solution.

By modifying the traditional legal barriers in Section 39 of the Motor Vehicles and Transport Management Act 2049 BS, the Cabinet has opened a 3-year window that legalizes ICE-to-EV conversions. This study evaluates the technical and financial viability of retrofitting internal combustion engine vehicles in Nepal with 10-15 kW motors and 15-20 kWh batteries, offering a 150–180 km urban range and up to 90% reduced operating costs. The analysis provides a roadmap for policy makers and workshops to adopt standardized conversion practices to utilize domestic hydropower and address challenges like regulatory gaps and safety concerns.