In 2021, Yatri introduced Nepal's first locally designed, developed, and produced electric motorcycle. It sold 85 P1 units, but traffic police began impounding bikes without government plates because existing registration rules covered imported vehicles, not homegrown ones.

The turning point was escalation rather than another product change. After interim road-worthiness certificates expired in November 2022, the issue was raised in Parliament and Prime Minister Pushpa Kamal Dahal intervened to accelerate a fix. The government added a clause to its transport directives allowing locally made vehicles to be registered.

The immediate result was operational: Yatri announced its first registered bike on May 15, 2023, reopening road use for a product trapped by dated rules. The article calls the resolution a one-off; wider bureaucratic ambiguity remained, so the win reopened the road without solving Nepal's innovation system.

The government added a clause allowing locally made vehicles to be registered, and Yatri announced its first registered bike on May 15, 2023.

Existing rules assumed vehicles were imported, leaving no path for a locally made bike.

Interim certificates bought time but expired in November 2022 without a permanent directive.

Parliamentary attention and the prime minister's intervention moved the issue past bureaucratic delay.

A narrow clause solved the immediate registration blockage without requiring a wholesale rewrite.

When a new product falls between old rules, turn the adoption bottleneck into a public policy decision: secure a legal path first, then push for a rule others can use.

Yatri got a legal registration path, but Rest of World described the fix as a one-off. Other Nepali innovators still operated in policy gray zones, and the government was only working on a broader ICT bill. The durable lesson was to force a rule change around the bottleneck, while recognizing that a single clause did not make the market predictable.

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The sources

  1. A once booming Nepal EV company faces a possible shutdown - Rest of World restofworld.org