Kathmandu, Aug. 11 -- The summer heat hung heavy over Bhrikutimandap Exhibition Hall in Kathmandu on Saturday, but that did not stop Ishwar Rauniyar from weaving through the crowded alleys of the Nepal Automobile Importers and Manufacturers Association (NAIMA) Auto Show. Rows of gleaming, high-tech electric vehicles stretched before him, their metallic surfaces catching the overhead lights.

"EV cars here are more than I expected," said the 52-year-old from Balaju, pausing to admire a sleek SUV. "The look and features are amazing, even in vehicles priced below Rs3 million."

This year's auto show has become the battleground for Chinese and Indian electric vehicle (EV) makers. Almost every stall offers tempting deals - cash prizes up to Rs...