Vehicle imports surge by 32%

KATHMANDU, JANUARY 21 : Vehicle imports in Nepal have witnessed a significant surge in recent months, indicating a notable recovery in the country’s automotive industry.

According to data released by the Customs Department on Monday, the sector has demonstrated remarkable growth. During the first six months of the current fiscal year 2024/25, vehicle imports increased by 32% compared to the corresponding period in the previous fiscal year. The total value of imports during this period amounted to NPR 47.97 billion, up from NPR 36.32 billion in the same timeframe last year.

Notably, vehicle imports experienced a sharp decline of 50% during fiscal year 2022/23, following a record-high import value of NPR 123 billion in fiscal year  2021/22. However, the last fiscal year 2023/24 saw a modest recovery, with vehicle imports rising by 26% to reach NPR 78 billion. Despite this improvement, the sector has yet to regain its peak import level of NPR of 123 billion.

In line with the overall growth in vehicle imports, the volume of partucularly electric vehicles (EVs)   brought in the country,has also increased. By the end of Poush (mid-December to mid-January) in the current fiscal year, EV imports reached NPR 13.10 billion, compared to NPR 12.73 billion during the same period in the previous fiscal year.

However, petroleum-engine vehicles accounted for a larger share of the growth. Imports of such vehicles during the review period reached NPR 34.87 billion, a substantial increase from NPR 23.59 billion in the same period last year.