Key Takeaways

• Car imports in Nepal increased by 24% in the first month of the fiscal year, largely driven by electric vehicles.
• Electric cars accounted for 689 units imported, a fourfold increase from last year, with total revenue from vehicle imports reaching 2.44 billion rupees.
• Two-wheeled vehicle imports declined by 7.52%, though electric scooters saw a record import of 5,174 units, representing 18.6% of total two-wheeler imports.

A Mixed Start for Nepal’s Automobile Market

The automobile market in Nepal experienced varying trends in the first month of the fiscal year 2083-84 (साउन). Recent data from the Department of Customs highlights a noteworthy surge in the import of cars, jeeps, and vans, contrasted by a slight dip in two-wheeled vehicle imports. Notably, the interest in electric vehicles (EVs) is robust across both categories.

In total, 987 units of cars, jeeps, and vans were imported in साउन, marking a 24% increase (190 units) compared to the same month last year, which recorded 797 units. Electric vehicles accounted for a significant portion of these imports, with 689 electric cars entering the country—a fourfold rise from 160 units in the previous year. Additionally, imports included 219 petrol, 56 diesel, and 23 plug-in hybrid cars.

The total import value for four-wheeled vehicles reached 2.19 billion rupees, generating a total government revenue of 2.44 billion rupees. Specifically, electric cars were imported at a value of 1.61 billion rupees, contributing 1.06 billion rupees in revenue. Petrol and diesel cars had an import value of 448.5 million rupees with revenue of 1.09 billion rupees, and hybrid cars brought in 130 million rupees, generating 290 million rupees in government revenue. This increase is attributed to businesses introducing numerous new EV brands and models in anticipation of upcoming trade shows, such as the NADA Auto Show in Bhadra and the NIMA Mobility Expo in साउन.

Conversely, two-wheeled vehicle imports saw a decline, with 27,806 units of motorcycles and scooters imported in साउन—a decrease of 7.52% (2,262 units) from last year’s 30,087 units. Despite the overall decline, electric scooters achieved a record high, with 5,174 units imported, representing 18.6% of total two-wheeler imports.

The total import value for two-wheelers was 4 billion rupees, yielding revenue of 3.48 billion rupees for the government. It is worth noting that over 80% of the two-wheelers imported were unassembled. Motorcycle brands such as Bajaj, TVS, Yamaha, Honda, Royal Enfield, Hero, and CFMoto are currently assembling products locally in Nepal, further influencing market dynamics.

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