Vehicle & Spare Parts Imports Rise 30%: Nepal’s Auto Market in 2025 Explained

Nepal’s automobile and spare parts imports surged by 30.6% in the first month of 2025/26, reaching Rs. 9.52 billioncompared to Rs. 7.29 billion in the same period of the previous year. With a 6.7% share in total imports, vehicles and spare parts are now the third-largest import category, reflecting a strong rebound in the country’s auto market.

Analysts say this increase is driven by several factors. The most important is the post-pandemic recovery of household and business demand, as more families and entrepreneurs are purchasing new vehicles for mobility and logistics. Secondly, the availability of cheaper financing and bank credit has supported vehicle purchases, particularly motorcycles, scooters, and small cars. The rise in imports is also linked to the expansion of Nepal’s construction, transport, and delivery sectors, which rely heavily on trucks, buses, and spare parts.

Another factor is the growing consumer interest in electric vehicles (EVs). Though EV imports fall under a slightly different subcategory, the demand for related spare parts and hybrid systems has increased. However, experts warn that such a sharp rise in auto imports could put pressure on Nepal’s foreign exchange reserves and trade deficit, unless balanced by higher domestic production or remittance inflows.