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

Published on October 26, 2025

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.

NRB Report: Labour Migration to Saudi Arabia and Qatar Declines, Japan and Oman Surge

Overall, Nepal’s foreign-employment market continues to grow, though the direction of flow is changing. Declines in Saudi Arabia and Qatar are offset by sharp increases in Japan, Oman, and non-traditional markets, marking a gradual transition toward higher-skill and diversified overseas employment opportunities.

UAE Remains Top Job Destination for Nepali Workers with 37,381 Migrants in 2025/26

In FY 2025/26, the UAE remained Nepal’s top job destination, hosting 37,381 Nepali workers in the first two months alone — a 40% year-on-year increase. The Gulf region continues to absorb the majority of Nepali labor, with strong growth also seen in Japan and Cyprus. Total labor migration approvals (new and renewal) exceeded 136,000 during the review period.

Nepal’s Foreign Employment Rises 17.9% in FY 2025/26 – Over 90,000 Workers Leave in Two Months

In the first two months of FY 2025/26, Nepal sent 90,198 new workers abroad, up 17.9% year-on-year. The UAE, Saudi Arabia, and Qatar remained the top destinations, while Japan and Cyprus showed growth. Including renewals, total foreign employment reached 1.36 lakh workers, highlighting Nepal’s ongoing dependence on labor migration for income and remittance.

NRB Report: Nepal’s Trade with China Expands Sharply as Industrial Imports Rise 32%

Nepal’s trade with China surged in early FY 2025/26, with imports up 25.1 percent to Rs 65.17 billion, led by a 32 percent rise in industrial imports. Key drivers included telecommunication equipment, fertilizers, solar panels, and machinery, marking a shift toward industrial investment — but also highlighting growing trade imbalance concerns.

Nepal Increases Imports of Telecommunication Equipment and Machinery from China by 52%

Nepal’s imports from China climbed to Rs 65.17 billion in the first two months of FY 2025/26, up 25 percent year-on-year, led by a 52.6 percent rise in telecommunication equipment and strong demand for industrial machinery. The surge reflects rising investments in technology and infrastructure but also adds to Nepal’s trade-deficit challenge.

Solar Panels, Wheat Products, and Chemical Fertilizer Drive Nepal-China Trade Growth

In FY 2025/26, Nepal’s imports from China climbed 25%, totaling Rs 65.17 billion, driven mainly by solar panels, wheat products, and chemical fertilizers. The surge highlights industrial recovery and the country’s push toward renewable energy, though it also increases Nepal’s trade deficit risk due to heavy reliance on Chinese imports.

NRB Data: Nepal’s Imports from China Reach Rs 65.2 Billion in Two Months, Up 25%

In the first two months of FY 2025/26, Nepal’s imports from China climbed 25 percent, totaling Rs 65.2 billion. Growth was led by telecom equipment, fertilizers, solar panels, and PVC compounds, showing rising industrial and technology demand. While the expansion reflects economic momentum, it also deepens Nepal’s import dependency and trade-deficit concerns.

Nepal’s Imports from China Surge 25.1% in FY 2025/26 – Electronics and Machinery Lead Growth

Nepal’s imports from China climbed 25.1% in the first two months of FY 2025/26, reaching Rs. 65.17 billion, led by telecom equipment, fertilizers, machinery, and solar panels. This surge cements China’s role as Nepal’s second-largest trade partner and reflects rising industrial and technological demand.

Nepal Sees Import Boost in Vehicles (+33%) and Rice/Paddy (+68%) from India in 2025/26

In FY 2025/26, Nepal’s imports from India rose 8% to Rs. 173.54 billion, driven by strong growth in vehicle imports (+33%) and rice/paddy imports (+68%). The rise indicates revived consumer demand and agricultural dependency but also reinforces concerns about Nepal’s widening trade deficit with India.