Nepal Motorcycles Industry reported significant progress last year. In 2025, the motorcycle market expanded to 206,983 units (+19.6%), despite increased import duties and higher taxation on locally assembled models in recent years.
Macroeconomic Outlook
Nepal has made meaningful progress on structural reforms, supported in part by IMF capacity development programs. On the fiscal side, transparency and revenue frameworks have improved with the publication of a Domestic Revenue Mobilization Strategy, a Fiscal Risk Statement, and a Tax Expenditure Report. In addition, revised guidelines for the National Project Bank, issued by the National Planning Commission, aim to strengthen capital project selection and execution.
At the same time, Nepal faces a delicate transition. Recent youth-led protests highlighted widespread demands for greater transparency, improved governance, and a more equitable distribution of economic opportunities. These aspirations reflect both domestic pressures and broader regional dynamics.
Going forward, Nepal must balance prudent political, economic, and financial policies to ensure an orderly transition, while navigating persistent global economic uncertainty. Achieving inclusive and sustainable growth will be critical in maintaining social stability and investor confidence.
Motorcycle Market Trend
Motorcycles are the dominant mode of individual mobility in Nepal, accounting for over 80% of the circulating vehicle fleet. However, much of the existing fleet is aging, as annual new registrations typically range around 200,000 units, limiting renewal speed.
With gradual economic development and expectations of rising per-capita income, the motorcycle market is positioned for medium-term growth. Four-wheel vehicles remain largely unaffordable for a significant share of the population, reinforcing the structural importance of two-wheelers in a country with one of the lowest income levels in Asia.
In 2025, the motorcycle market expanded to 206,983 units (+19.6%), despite increased import duties and higher taxation on locally assembled models in recent years. This resilience underscores the essential nature of motorcycles within Nepal’s mobility ecosystem.
Notably, the revised taxation framework introduced last year is more favorable to electric vehicles, supporting early-stage EV adoption. The segment is gradually expanding, driven mainly by the presence of several Chinese manufacturers entering the market.
The competitive landscape remains heavily influenced by Indian manufacturers, with Hero MotoCorp and Bajaj Auto engaged in a close battle for market leadership.
