Earthmover sales soar on construction boomAn ongoing construction boom and increased development activities in the country have led to a significant rise in demand for heavy equipment and machinery.
An ongoing construction boom and increased development activities in the country have led to a significant rise in demand for heavy equipment and machinery.
Nepal imported 9,751 excavators, dozers, cranes and trucks in the first eight months of the current fiscal year 2016-17, according to the statistics of the Department of Transport.
The figure represents a steep jump from the 8,328 units imported during the whole of
According to the Federation of Construction Associations Nepal (FCAN), demand for construction equipment has been growing by 25 percent annually.
Excavators, loaders, bulldozers, dump trucks and cranes are the major construction equipment imported into Nepal.
“All heavy equipment dealers have witnessed good business due to reconstruction works. Excavators, backhoe loaders, dozers, dumpers and cranes are being imported in large numbers,” said Ram Sharan Deuja, general secretary of the FCAN. The annual turnover of the construction machinery sector in Nepal comes to Rs25-30 billion.
Dealers said that apart from ongoing projects, planned mega infrastructure projects could push up demand for construction equipment in the coming years.
“We have been selling JCB equipment in good numbers annually. Equipment and machinery sales are up 45 percent compared to last year,” said Sanjeeb Deuja, sales manager of Morang Auto Works Enterprises, the authorised dealer of JCB machines in Nepal.
According to him, 1,800 heavy duty machines were sold this fiscal year against 1,000 in the last fiscal year. He said that excavators and backhoe loaders were in great demand. Monthly sales of JCB equipment in Nepal total 300-400 units. The peak earthmover selling season starts in September. Monthly sales drop to 120 units in June when the monsoon starts.
Along with an increase in demand, new heavy equipment brands are also being launched. Komatsu, JCB, Caterpillar Heavy Equipment Liberal, Apollo, Bharat Earth Movers, XCMG and New Holland are the new brands that were introduced in Nepal in the last few years.
Nepal imports heavy equipment from India, China, Korea and other countries. According to the FCAN, the construction industry in Nepal accounts for around 10 percent of the GDP and consumes about 35 percent of the government budget. An estimated 1 million jobs are being generated by the construction industry.