Nepal Motorcycles Industry hit by new taxation rules. In 2023 sales declined 16% and perspectives for the rest of the year are not encouraging. Bajaj Auto is market leader.
Motorcycles Industry Trend
78% of circulating vehicles in Nepal are two wheelers. The most have a very heavy age, considering that annual new registered two-wheelers are in the range of 200k.
Together with the development of the country, under an economic profile, with expectations for pro-capita income increase, the motorcycles market is projected to a medium terms growth, even considering that the four wheelers are too expensive for people with one of lower income in ASIA.
Unfortunately, the effects of covid 19 had been hard and the market fell down in 2020 not recovering in 2021, although the economy last year revamped.
Starting the 2022 the Government decided to block the import in the country on 10 categories of good, including the four and the two wheelers over 250cc. In a rather bolder move, the government added two-wheelers above 150cc to the import ban list from July 17, 2022.
While the initial ban hit marginally the market, which is concentrated in the 125-150 cc range, the second was really negative and i causing a big disruption to the market, while cannot encourage the local venture start-ups.
In 2022 sales have been 191.223 declining 4.7% but the real effect on the new rules are more evident this year, although all top players shifted the offer to vehicles with engine displacement below the 150cc.
Indeed, accordingly with data released by the local association on manufacturers, in the 2023 sales declined 16% and perspectives for the new year are not encouraging.
The market is a feud for Indian manufacturers, with Bajaj Auto acting as leader, but with all top Indian manufacturers on top of the rank, together with Honda and Yamaha.
