The number of motorcycles and scooters registered in Lumbini, Narayani and Koshi zones is nearing the figure in Bagmati zone where the Kathmandu Valley is situated, the largest market for motor vehicles in Nepal, pointing to swelling two-wheeler sales in emerging markets.

According to official data for the last fiscal year 2015-16, Bagmati zone saw the registration of 64,927 motorcycles and scooters followed by Lumbini with 56,793, Narayani with 48,196 and Koshi with 42,429 two-wheelers.

Compared to the figures for the previous fiscal year, two-wheeler registrations soared 116 percent in Lumbini and 39 percent in Koshi, clearly showing how the market for motorcycles and scooters is expanding outside the capital city. However, the number of registrations in Narayani zone saw a slight fall from the previous year.

“There are four major drivers of growth—excess liquidity, continuous inflow of remittance, opening of new roads around the country and a rebound in the economy following a four-month-long trade embargo,” said Shekhar Golchha, executive director of Hansraj Hulaschand & Company, the authorised dealer of Bajaj motorcycles in Nepal.

According to Golchha, the Lumbini-Butwal corridor has risen as a highly economically active zone with industries and businesses expanding in the area. “The government has also opened many new road tracks creating new markets for motorbikes and scooters,” he added.

“Despite a fall in sales during the Tarai unrest, the vacuum was filled by exceptionally high demand for two-wheelers during the recovery phase,” said Rajan Raj Puri, manager of the two-wheeler unit at Syakar, the authorised distributor of Honda and Hero two-wheelers.

“The customer’s buying behavior has also contributed to the growth as around 70 percent of the vehicle owners upgrade their autos every two years.”

Apart from the consumption pattern, proximity to the Indian border and high liquidity in financial institutions has helped to push growth in these regions. Many financial institutions are providing auto loans at interest rates of as low as 5-6 percent, encouraging potential bike owners to decide to buy one.

According to the Department of Transportation Management, two-wheeler registrations across the country increased 36.18 percent to 267,439 in the fiscal year 2015-16.