Transport Equipment Imports Climb 32% – NRB Reports Strong Growth in Vehicle Spare Parts

Nepal’s transport sector has recorded a notable rebound, with imports of transport equipment, vehicles, and spare parts surging by 31.7% in the first two months of FY 2025/26, according to the Nepal Rastra Bank (NRB) Mid-September 2025/26 report. The total value of transport-related imports reached Rs. 20.58 billion, compared to Rs. 15.63 billion in the same period of the previous fiscal year, signaling renewed domestic demand and industrial recovery after years of subdued activity.

This rise in transport imports has been fueled by higher consumer demand, improved liquidity in the banking sector, and the expansion of infrastructure projects requiring heavy machinery and vehicle parts. Increased imports of vehicle spare parts and commercial transport components also indicate a resurgence in the logistics and mobility industries, which had slowed in previous years due to credit restrictions and fuel price volatility.

The broader import data from NRB shows that transport equipment now ranks as Nepal’s third-largest import category, contributing 6.7% of total imports. It follows petroleum products (13% share) and crude soybean oil (7.1% share). This upward trend in vehicle and spare parts imports aligns with the overall import expansion in FY 2025/26, as Nepal’s total imports reached Rs. 305.15 billion, up 16.2% year-on-year.

Experts attribute this growth to increased investment in automobile dealerships, construction vehicles, and electric mobility infrastructure, particularly in urban areas like Kathmandu, Biratnagar, and Pokhara. Imports of electric vehicles (EVs) and related equipment are also reported to have grown steadily, supported by government tax incentives and a gradual shift toward cleaner energy transport solutions.

However, economists caution that the rising import of vehicles and spare parts could widen Nepal’s trade deficit, given that these imports add to foreign currency outflow without generating equivalent export returns. They suggest promoting local vehicle assembly, battery recycling industries, and public transport electrification to reduce long-term dependency on imported transport goods.