Two-wheeler imports surge as Nepal brings in over 32,000 unassembled motorcycles in H1

KATHMANDU: Nepal has witnessed a sharp rise in two-wheeler imports in the first six months of the current fiscal year, with unassembled motorcycles alone nearly doubling in volume, underscoring strong domestic demand and growing activity in the automotive trade and assembly sector.

According to data from Birgunj Customs Office, a total of 32,331 unassembled motorcycles were imported through the Birgunj customs point during the review period, carrying a customs value of Rs 4.56 billion. These imports generated Rs 4.43 billion in revenue for the state treasury in the form of customs duties, taxes, and related charges.

In the corresponding period of the previous fiscal year, Nepal had imported 25,857 unassembled motorcycles worth Rs 3.38 billion. The year-on-year comparison shows a significant jump both in quantity and value, indicating expanding market penetration of motorcycles assembled domestically from imported kits, a model increasingly preferred by importers to optimize tax structures and logistics.

Customs officials say the growth in unassembled units reflects the rising role of local assembly plants and distributors seeking to meet demand for affordable commuter bikes amid limited public transport efficiency and expanding urbanization.

The trend also aligns with the government’s broader industrial policy encouraging value addition inside Nepal, even if at a semi-knocked-down (SKD) or completely knocked-down (CKD) level.

In addition to unassembled units, imports of fully built motorcycles have also increased. In the first six months of the current fiscal year, 4,567 motorcycles were imported, valued at Rs 458.1 million. During the same period last year, only 2,192 units were brought in, worth Rs 207.6 million.

This represents more than a twofold increase in value and volume, suggesting that demand is rising not only in the assembly segment but also in the direct import of finished bikes, often in higher-end or specialized categories.

The data further show parallel growth in the electric two-wheeler segment, reflecting Nepal’s gradual transition toward cleaner mobility. Over the six-month period, 4,594 electric motorcycles were imported, with a total value of Rs 581.8 million. In the same period of the previous fiscal year, imports stood at 2,218 electric motorcycles worth Rs 309.6 million.

The near doubling of electric motorcycle imports highlights shifting consumer preferences driven by rising fuel costs, urban air pollution concerns, and government incentives on electric vehicles. Lower customs duties and policy support for EVs have made electric two-wheelers increasingly competitive against conventional petrol-powered bikes, especially for city commuting.

Birgunj remains Nepal’s principal trade gateway with India and a major entry point for vehicles and automotive components. The customs office’s figures suggest that the two-wheeler segment continues to be one of the most dynamic components of Nepal’s import basket in the transport category.

Industry observers link the surge to several factors: post-pandemic recovery in household spending, expansion of hire-purchase financing by banks and finance companies, growth in ride-sharing and delivery services, and inadequate mass transit alternatives.

Motorcycles remain the most accessible personal mobility option for middle- and lower-middle-income households, particularly outside Kathmandu Valley.

From a fiscal perspective, the sector is proving to be a major revenue contributor. The Rs 4.43 billion collected from unassembled motorcycle imports alone in six months represents a substantial inflow to government coffers at a time when revenue mobilization remains under pressure in other sectors.

When combined with revenue from fully built motorcycles and electric units, the two-wheeler trade forms a critical pillar of customs-based income.

However, the rising import bill also adds to pressure on Nepal’s foreign exchange outflows, as motorcycles and parts are almost entirely imported. Policymakers face the dual challenge of supporting mobility and industrial activity while managing the trade deficit and promoting deeper domestic manufacturing beyond basic assembly.

The latest customs data underline how the motorcycle market — spanning petrol and electric, assembled and fully built — is expanding across segments, reshaping Nepal’s transport landscape and reinforcing the two-wheeler industry’s growing weight in trade, revenue, and urban mobility patterns.