Highlights

• Government allows ICE vehicles to be converted into electric vehicles for 3 years

• No approval required for retrofitting petrol and diesel vehicles

• Temporary legal barriers under Vehicle and Transport Management Act 2049 removed

• Draft of new law may make EV conversion a permanent option

Government Lets Old Vehicles Become Electric

The Government of Nepal has cleared the path for old petrol and diesel vehicles to switch to electric power. Vehicle owners now have a three-year window to convert their ICE vehicles into EVs without needing special permission. This move lifts a major restriction that previously stopped engine, chassis, and fuel system modifications under the Vehicle and Transport Management Act 2049.

Temporary EV Conversion Policy Explained

The three-year policy is backed by Section 177 of the Act. This allows the government to temporarily remove barriers preventing vehicle modifications. For the next three years, vehicle owners can:

• Convert petrol or diesel vehicles into electric vehicles freely

• Modify fuel systems to be more environmentally friendly or energy efficient

• Avoid lengthy approval processes and bureaucratic hurdles

Krishna Raj Pantha, Chief of Infrastructure Development and Transport Division, confirmed that the government officially nullified these restrictions through a Gazette notification, making the policy fully enforceable.

Legal Changes That Make EV Conversion Possible

Section 39 Restrictions Lifted

Under normal law, Section 39 bans any changes to:

• Engine

• Chassis

• Seat number

• Vehicle design

• Fuel system

During the three-year policy period, these restrictions do not apply to EV conversions.

Section 177 Powers Used

The government used Section 177 to temporarily override Section 39. This legal move allows EV conversions to happen immediately without waiting for a full amendment to the law.

Why This Policy Matters

This policy opens up major opportunities for Nepal:

• Affordable EV adoption by retrofitting old vehicles

• Growth for local EV conversion workshops and engineers

• Significant environmental benefits through lower emissions and reduced fossil fuel use

By removing the approval requirement, the policy makes it easier for everyday vehicle owners to switch to electric power.

What Happens After Three Years

After the three-year period, unless a new law is passed, previous restrictions under Section 39 will return. Conversions may again require government approval.

Government officials have indicated that the draft of the new Vehicle and Transport Act includes permanent provisions for EV conversion. If enacted, EV retrofits could remain a legal and popular option for years to come.

Impact on Nepalese Vehicle Owners and EV Market

This policy could transform the vehicle landscape in Nepal by:

• Boosting demand for EV conversion services and workshops

• Making electric mobility more accessible and affordable

• Contributing to cleaner air and energy-efficient transport

Nepal is taking a big step toward modernizing transport and reducing environmental impact, giving vehicle owners a chance to switch to electric without breaking the bank.