Nepal Motorcycles Industry actually is the 28th largest in the World, but the strong economic and population growth will move it at the 15th in few years. The market is recovering with a double-digit speed and first half 2021 sales at 106.271 are up 10.4% vs the correspondent period in the 2020 and down 0.3% vs the 2019.
Country Overview and Environment
Nepal or Federal Democratic Republic of Nepal is the country of over 29 million people (ranking 49th in the World), with a low urbanization level (20.4% in 2019) with an economy based on agriculture and tourism, thanks to the presence of Himalayan mountains.
The pro capita income among the lowest in Asia (US$1.236 in 2021) with rapid growth in percentage both in terms of GDP and population. The main transportation device is the two wheeler, actually representing over 80% of circulating vehicles.
The government is highly focusing on environment issues and a 2020 study shows as the transportations represents 70% of pollution in the country, pushing for effective CO2 reduction plans.
Nepali Motorcycles Industry
In the 2020 the domestic market was the 28th largest in the World, with over 193.000 new two and three wheeler registered. A relevant place although pandemic negative effects on the industry.
Projecting data ten years ahead, the country will be an half million market, potentially one of the top 15 in the World. In fact, the economic development will require mobility and only the two-wheeler will be able to satisfy the demand, as well cheaper than cars or track, while public transportation are and will be negligible.
Today the market is dominated by Indian manufacturers (Bajaj Auto is leader by far) with Japanese Honda and Yamaha at an acceptable market share and low presence of Chinese brands. The majority of vehicles are Street Commuter with a CC Class between 125 and 150.
However, the market will radically change and in short will be addressed by Chinese EVs manufacturers which will probably dominate the market in five years.
Motorcycles Industry Trend in the 2021
The market is recovering with a double-digit speed and first half 2021 sales at 106.271 are up 10.4% vs the correspondent period in the 2020 and down 0.3% vs the 2019.
The market will not hit the record scored in the 2017 (at 277.000) before the 2022 and all players are carefully following the evolution of emission limits discussion in place, as the Government wish to limit CO2 emission in short and could add duties on ICE models while further cutting taxes on the electric vehicles.
Unfortunately, actually the offer of EVs models does not exist!